Stock Analysis on Net

Arista Networks Inc. (NYSE:ANET) 

Enterprise Value to EBITDA (EV/EBITDA)

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Arista Networks Inc., EBITDA calculation

US$ in thousands

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12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income 1,352,446 840,854 634,557 859,867 328,115
Add: Income tax expense 229,350 90,025 104,306 2,403 (39,314)
Earnings before tax (EBT) 1,581,796 930,879 738,863 862,270 288,801
Add: Interest expense 2,701
Earnings before interest and tax (EBIT) 1,581,796 930,879 738,863 862,270 291,502
Add: Depreciation, amortization and other 62,700 50,334 35,158 32,849 27,671
Earnings before interest, tax, depreciation and amortization (EBITDA) 1,644,496 981,213 774,021 895,119 319,173

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Arista Networks Inc. EBITDA increased from 2020 to 2021 and from 2021 to 2022.

Enterprise Value to EBITDA Ratio, Current

Arista Networks Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 66,672,035
Earnings before interest, tax, depreciation and amortization (EBITDA) 1,644,496
Valuation Ratio
EV/EBITDA 40.54
Benchmarks
EV/EBITDA, Competitors1
Apple Inc. 23.95
Cisco Systems Inc. 10.24
Enphase Energy Inc. 26.42
Super Micro Computer Inc. 18.07
EV/EBITDA, Sector
Technology Hardware & Equipment 22.29
EV/EBITDA, Industry
Information Technology 24.79

Based on: 10-K (reporting date: 2022-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Arista Networks Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 40,318,962 36,582,874 20,863,198 14,367,210 18,071,517
Earnings before interest, tax, depreciation and amortization (EBITDA)2 1,644,496 981,213 774,021 895,119 319,173
Valuation Ratio
EV/EBITDA3 24.52 37.28 26.95 16.05 56.62
Benchmarks
EV/EBITDA, Competitors4
Apple Inc. 19.15 20.47 23.12 13.59 11.54
Cisco Systems Inc. 10.52 15.05 9.69 11.36 12.07
Enphase Energy Inc. 55.15 99.19 155.30 62.22 97.29
Super Micro Computer Inc. 10.49 11.20 10.64 7.73 10.02
EV/EBITDA, Sector
Technology Hardware & Equipment 18.36 20.09 21.11 13.28 11.77
EV/EBITDA, Industry
Information Technology 18.32 20.41 19.60 14.44 12.42

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 See details »

2 See details »

3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 40,318,962 ÷ 1,644,496 = 24.52

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Arista Networks Inc. EV/EBITDA ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.