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Arista NetworksANET -1.86%98 ROC (Joel Greenblatt) % is 1,284.84% as of Mar. 2026, which is 535% above its 10-year median of 202.23. GuruFocus rates ANET with a GF Score™ of 98/100 and a GF Value™ of $142.00 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 2,491 Hardware companies, Arista Networks ranks better than 99.24% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Arista Networks's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 1,284.84%.
The historical rank and industry rank for Arista Networks's ROC (Joel Greenblatt) % or its related term are showing as below:
ANET'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 115.96 Med: 202.23 Max: 650.35
Current: 650.35
During the past 13 years, Arista Networks's highest ROC (Joel Greenblatt) % was 650.35%. The lowest was 115.96%. And the median was 202.23%.
ANET's ROC (Joel Greenblatt) % is ranked better than 99.24% of 2491
companies
in the Hardware industry
Industry Median: 10.43
vs ANET: 650.35
Arista Networks's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 11.10% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Arista Networks ROC (Joel Greenblatt) % Related Terms
Arista Networks ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Arista Networks's ROC (Joel Greenblatt) % 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.
ANET vs SNDK, STX, WDC: ROC (Joel Greenblatt) % Comparison
For the Computer Hardware subindustry, Arista Networks's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Hardware Industry
For the Hardware industry and Technology sector, Arista Networks's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Arista Networks's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 1,284.84% mean?
Arista Networks (ANET) has a ROC (Joel Greenblatt) % of 1,284.84% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Arista Networks and its competitors. This is 535% above median its historical median of 202.23. Over the past decade, Arista Networks' ROC (Joel Greenblatt) % has ranged from 115.96 to 650.35. According to the industry distribution chart, Arista Networks ranks #19 out of 2491 companies in the Hardware industry, placing it in the top 0.8%.
Is Arista Networks' ROC (Joel Greenblatt) % too high?
Arista Networks' current ROC (Joel Greenblatt) % of 1,284.84% is 535% above median its 10-year median of 202.23. Over the past 10 years, this metric has ranged from a low of 115.96 to a high of 650.35. The Hardware industry median ROC (Joel Greenblatt) % is 10.43. Arista Networks' value of 1,284.84% is 12218.7% above this industry median. Based on the distribution chart, Arista Networks ranks #19 out of 2491 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 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arista Networks' ROC (Joel Greenblatt) % compare to SNDK and STX?
According to the Hardware industry distribution chart, Arista Networks ranks #19 out of 2491 companies for ROC (Joel Greenblatt) %. This places Arista Networks in the top 1% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 10.43. Arista Networks' value of 1,284.84% is 12218.7% above this benchmark. Historically, Arista Networks' own ROC (Joel Greenblatt) % has ranged from 115.96 to 650.35 over the past decade. While the company's 10-year median is 202.23 vs. the industry median of 10.43, 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 ROC (Joel Greenblatt) % for a Hardware company?
The median ROC (Joel Greenblatt) % among Hardware companies is 10.43, based on 2,491 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arista Networks's current ROC (Joel Greenblatt) % of 1,284.84% is 12218.7% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Arista Networks and its competitors. For the Hardware industry, the median ROC (Joel Greenblatt) % is 10.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arista Networks's current ROC (Joel Greenblatt) % is 1,284.84%, which is 535% above median its own 10-year median of 202.23. 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?
Based on GuruFocus' analysis, Arista Networks (ANET) is currently considered Modestly Overvalued. The stock's GF Value™ is $142.00, compared to a current price of $170.76 — trading 20.3% above its estimated fair value. The current ROC (Joel Greenblatt) % is 1,284.84%, which is 535% above median its 10-year median of 202.23 and 12218.7% above the Hardware industry median of 10.43. Arista Networks' overall GF Score™ is 98/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Arista Networks (ANET), the current ROC (Joel Greenblatt) % is 1,284.84% 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 (ANET) Overvalued in 2026?
Based on GuruFocus' analysis, Arista Networks stock appears to be overvalued.
The current stock price of $170.76 is trading 20.3% above its estimated GF Value™ of $142.00.
GuruFocus considers Arista Networks to be Modestly Overvalued.
Key valuation signals for ANET:
ROC (Joel Greenblatt) %: 1,284.84% (535% above median its 10-year median of 202.23)
GF Value™: $142.00 vs. price of $170.76 (20.3% above fair value)
Industry Position: 12218.7% above the Hardware median (#19 of 2491)
No single metric tells the full story. See the 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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