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Arista Networks (WBO:ANET) Shiller PE Ratio : 132.89 (As of May. 04, 2025)


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What is Arista Networks Shiller PE Ratio?

As of today (2025-05-04), Arista Networks's current share price is €98.3375. Arista Networks's E10 for the quarter that ended in Dec. 2024 was €0.74. Arista Networks's Shiller PE Ratio for today is 132.89.

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

WBO:ANET' s Shiller PE Ratio Range Over the Past 10 Years
Min: 62.73   Med: 97.86   Max: 155.63
Current: 109.16

During the past years, Arista Networks's highest Shiller PE Ratio was 155.63. The lowest was 62.73. And the median was 97.86.

WBO:ANET's Shiller PE Ratio is ranked worse than
92.14% of 1323 companies
in the Hardware industry
Industry Median: 23.58 vs WBO:ANET: 109.16

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Arista Networks's adjusted earnings per share data for the three months ended in Dec. 2024 was €0.592. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €0.74 for the trailing ten years ended in Dec. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Arista Networks Shiller PE Ratio Historical Data

The historical data trend for Arista Networks's Shiller PE 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 Shiller PE Ratio Chart

Arista Networks Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - 71.06 97.60 132.55

Arista Networks Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Shiller PE 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 97.60 109.30 122.31 123.85 132.55

Competitive Comparison of Arista Networks's Shiller PE Ratio

For the Computer Hardware subindustry, Arista Networks's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio Distribution in the Hardware Industry

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

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


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Arista Networks Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Arista Networks's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=98.3375/0.74
=132.89

* 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.

Arista Networks's E10 for the quarter that ended in Dec. 2024 is calculated as:

For example, Arista Networks's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=0.592/133.1571*133.1571
=0.592

Current CPI (Dec. 2024) = 133.1571.

Arista Networks Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201503 0.020 99.621 0.027
201506 0.018 100.684 0.024
201509 0.022 100.392 0.029
201512 0.034 99.792 0.045
201603 0.027 100.470 0.036
201606 0.029 101.688 0.038
201609 0.038 101.861 0.050
201612 0.047 101.863 0.061
201703 0.063 102.862 0.082
201706 0.072 103.349 0.093
201709 0.088 104.136 0.113
201712 0.068 104.011 0.087
201803 0.091 105.290 0.115
201806 -0.111 106.317 -0.139
201809 0.111 106.507 0.139
201812 0.115 105.998 0.144
201903 0.137 107.251 0.170
201906 0.129 108.070 0.159
201909 0.147 108.329 0.181
201912 0.183 108.420 0.225
202003 0.098 108.902 0.120
202006 0.102 108.767 0.125
202009 0.112 109.815 0.136
202012 0.119 109.897 0.144
202103 0.120 111.754 0.143
202106 0.129 114.631 0.150
202109 0.149 115.734 0.171
202112 0.166 117.630 0.188
202203 0.193 121.301 0.212
202206 0.222 125.017 0.236
202209 0.285 125.227 0.303
202212 0.319 125.222 0.339
202303 0.322 127.348 0.337
202306 0.358 128.729 0.370
202309 0.403 129.860 0.413
202312 0.440 129.419 0.453
202403 0.458 131.776 0.463
202406 0.483 132.554 0.485
202409 0.525 133.029 0.526
202412 0.592 133.157 0.592

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Arista Networks  (WBO:ANET) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Arista Networks Shiller PE Ratio Related Terms

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


Arista Networks Business Description

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.