Arista Fair Value
AN
The fair market value of ANET stock is 287.5 USD. Relative to the market price of 400.02 USD Arista is overvalued by 28.1%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Arista Valuation
Current ANET share ticker price is 400.02 USD.
The fair value level of 287.5 USD can be considered as an effective entry point for long-term investors to start investing in ANET stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 28% higher its fair value
Current price is 54% higher its minimum value
Current price is 4% higher its maximum value
Market price:
ANET stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
Arista Networks Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
44.93
2
Median P/E over 5 years
33.76
3
Minimum P/E over 5 years
21.61
4
Earning per share (last 12 months)
8.52 USD
Maximum value
1
x
4
=
382.64 USD
Fair value
2
x
4
=
287.5 USD
Minimum value
3
x
4
=
184.03 USD
Arista Networks Inc price metrics
54.62
Annual return (geometric mean)
42.29
Risk (standard deviation) of returns
β
1.11
Beta (volatility compared to market)