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10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
Arista Networks's 10-Year ROIIC % for the quarter that ended in Dec. 2025 was 42.47%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Arista Networks's 10-Year ROIIC % or its related term are showing as below:
ANET's 10-Year ROIIC % is ranked better than 89.92% of 2162
companies
in the Hardware industry
Industry Median: 4.255
vs ANET: 42.47
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Arista Networks 10-Year ROIIC % Related Terms
Arista Networks 10-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Arista Networks's 10-Year ROIIC % 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: 10-Year ROIIC % Comparison
For the Computer Hardware subindustry, Arista Networks's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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 10-Year ROIIC % vs Hardware Industry
For the Hardware industry and Technology sector, Arista Networks's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Arista Networks's 10-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Arista Networks (ANET) has a 10-Year ROIIC % of 42.47 as of Dec. 2025. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Arista Networks and its competitors. According to the industry distribution chart, Arista Networks ranks #218 out of 2162 companies in the Hardware industry, placing it in the top 10.1%.
Is Arista Networks' 10-Year ROIIC % too high?
Arista Networks' current 10-Year ROIIC % is 42.47. The Hardware industry median 10-Year ROIIC % is 4.26. Arista Networks' value of 42.47 is 898.1% above this industry median. Based on the distribution chart, Arista Networks ranks #218 out of 2162 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 97/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arista Networks' 10-Year ROIIC % compare to SNDK and STX?
According to the Hardware industry distribution chart, Arista Networks ranks #218 out of 2162 companies for 10-Year ROIIC %. This places Arista Networks in the top 10% of its industry — outperforming the majority of peers. The industry median 10-Year ROIIC % is 4.26. Arista Networks' value of 42.47 is 898.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 10-Year ROIIC % for a Hardware company?
The median 10-Year ROIIC % among Hardware companies is 4.26, based on 2,162 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arista Networks's current 10-Year ROIIC % of 42.47 is 898.1% 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 10-Year ROIIC % mean?
A high 10-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Arista Networks and its competitors. For the Hardware industry, the median 10-Year ROIIC % is 4.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arista Networks's current 10-Year ROIIC % is 42.47. 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 Significantly Overvalued. The stock's GF Value™ is $142.75, compared to a current price of $210.69 — trading 47.6% above its estimated fair value. The current 10-Year ROIIC % is 42.47 and 898.1% above the Hardware industry median of 4.26. Arista Networks' overall GF Score™ is 97/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 10-Year ROIIC % calculated?
10-Year ROIIC % is calculated from a company's financial statements. For Arista Networks (ANET), the current 10-Year ROIIC % is 42.47 as of Dec. 2025. 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 $210.69 is trading 47.6% above its estimated GF Value™ of $142.75.
GuruFocus considers Arista Networks to be Significantly Overvalued.
Key valuation signals for ANET:
10-Year ROIIC %: 42.47
GF Value™: $142.75 vs. price of $210.69 (47.6% above fair value)
Industry Position: 898.1% above the Hardware median (#218 of 2162)
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.
97GF Score
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