Arista NetworksXSWX:ANET 98 Return-on-Tangible-Equity is 32.87% as of Mar. 2026, which is 4% above its 10-year median of 31.48. GuruFocus rates XSWX:ANET with a GF Score™ of 98/100 and a GF Value™ of CHF120.11. The stock has 4 warning signs investors should review. Among 2,379 Hardware companies, Arista Networks ranks better than 92.98% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Arista Networks's annualized net income for the quarter that ended in Mar. 2026 was CHF3,221.32 Mil. Arista Networks's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF9,800.97 Mil. Therefore, Arista Networks's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 32.87%.
The historical rank and industry rank for Arista Networks's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:ANET'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.77 Med: 31.48 Max: 36.75
Current: 33.28
During the past 13 years, Arista Networks's highest Return-on-Tangible-Equity was 36.75%. The lowest was 17.77%. And the median was 31.48%.
XSWX:ANET's Return-on-Tangible-Equity is ranked better than 92.98% of 2379
companies
in the Hardware industry
Industry Median: 5.26
vs XSWX:ANET: 33.28
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Arista Networks Return-on-Tangible-Equity Related Terms
Arista Networks Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Arista Networks's Return-on-Tangible-Equity 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.
XSWX:ANET vs : Return-on-Tangible-Equity Comparison
For the Computer Hardware subindustry, Arista Networks's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Arista Networks's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arista Networks's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 32.87% mean?
Arista Networks (XSWX:ANET) has a Return-on-Tangible-Equity of 32.87% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Arista Networks and its competitors. This is near median its historical median of 31.48. Over the past decade, Arista Networks' Return-on-Tangible-Equity has ranged from 17.77 to 36.75. According to the industry distribution chart, Arista Networks ranks #167 out of 2379 companies in the Hardware industry, placing it in the top 7%.
Is Arista Networks' Return-on-Tangible-Equity too high?
Arista Networks' current Return-on-Tangible-Equity of 32.87% is near median its 10-year median of 31.48. Over the past 10 years, this metric has ranged from a low of 17.77 to a high of 36.75. The Hardware industry median Return-on-Tangible-Equity is 5.26. Arista Networks' value of 32.87% is 524.9% above this industry median. Based on the distribution chart, Arista Networks ranks #167 out of 2379 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Arista Networks has a GF Score™ of 98/100, reflecting its overall financial health beyond just this single metric.
How does Arista Networks' Return-on-Tangible-Equity compare to ?
According to the Hardware industry distribution chart, Arista Networks ranks #167 out of 2379 companies for Return-on-Tangible-Equity. This places Arista Networks in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.26. Arista Networks' value of 32.87% is 524.9% above this benchmark. Historically, Arista Networks' own Return-on-Tangible-Equity has ranged from 17.77 to 36.75 over the past decade. While the company's 10-year median is 31.48 vs. the industry median of 5.26, Arista Networks has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.26, based on 2,379 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arista Networks's current Return-on-Tangible-Equity of 32.87% is 524.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Arista Networks and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arista Networks's current Return-on-Tangible-Equity is 32.87%, which is near median its own 10-year median of 31.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arista Networks stock overvalued right now?
Arista Networks (XSWX:ANET) has a current Return-on-Tangible-Equity of 32.87%. The stock's GF Value™ is CHF120.11, compared to a current price of CHF129.94 — trading 8.2% above its estimated fair value. The current Return-on-Tangible-Equity is 32.87%, which is near median its 10-year median of 31.48 and 524.9% above the Hardware industry median of 5.26. Arista Networks' overall GF Score™ is 98/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Arista Networks (XSWX:ANET), the current Return-on-Tangible-Equity is 32.87% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Arista Networks (XSWX:ANET) Overvalued in 2026?
Based on GuruFocus' analysis, Arista Networks stock appears to be overvalued.
The current stock price of CHF129.94 is trading 8.2% above its estimated GF Value™ of CHF120.11.
Key valuation signals for XSWX:ANET:
Return-on-Tangible-Equity: 32.87% (near median its 10-year median of 31.48)
GF Value™: CHF120.11 vs. price of CHF129.94 (8.2% above fair value)
Industry Position: 524.9% above the Hardware median (#167 of 2379)
No single metric tells the full story. See the XSWX:ANET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 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-fourths of its sales from North America.
98GF Score
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