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Arista Networks (BSP:A1NE34) PEG Ratio : 1.25 (As of Apr. 26, 2024)


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What is Arista Networks PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Arista Networks's PE Ratio without NRI is 52.52. Arista Networks's 5-Year EBITDA growth rate is 42.10%. Therefore, Arista Networks's PEG Ratio for today is 1.25.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for Arista Networks's PEG Ratio or its related term are showing as below:

BSP:A1NE34' s PEG Ratio Range Over the Past 10 Years
Min: 0.54   Med: 1.05   Max: 1.96
Current: 1.19


During the past 13 years, Arista Networks's highest PEG Ratio was 1.96. The lowest was 0.54. And the median was 1.05.


BSP:A1NE34's PEG Ratio is ranked better than
60.55% of 938 companies
in the Hardware industry
Industry Median: 1.57 vs BSP:A1NE34: 1.19

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Arista Networks PEG Ratio Historical Data

The historical data trend for Arista Networks's PEG Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Arista Networks PEG Ratio Chart

Arista Networks Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PEG Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.61 1.10 1.93 0.85 0.92

Arista Networks Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PEG Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.85 0.89 0.67 0.99 0.92

Competitive Comparison of Arista Networks's PEG Ratio

For the Computer Hardware subindustry, Arista Networks's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Arista Networks's PEG Ratio Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Arista Networks's PEG Ratio distribution charts can be found below:

* The bar in red indicates where Arista Networks's PEG Ratio falls into.



Arista Networks PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Arista Networks's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=52.521620391443/42.10
=1.25

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Arista Networks  (BSP:A1NE34) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Arista Networks PEG Ratio Related Terms

Thank you for viewing the detailed overview of Arista Networks's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Arista Networks (BSP:A1NE34) Business Description

Traded in Other Exchanges
Address
5453 Great America Parkway, Santa Clara, CA, USA, 95054
Arista Networks is a networking equipment provider that primarily sells Ethernet switches and software to data centers. Its marquee product is its extensible operating system, or EOS, that runs a single image across every single one of its devices. The firm operates as one reportable segment. It has steadily gained market share since its founding in 2004, with a focus on high-speed applications. Arista counts Microsoft and Meta Platforms as its largest customers and derives roughly three quarters of its sales from North America.

Arista Networks (BSP:A1NE34) Headlines

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