Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Arista Networks Inc., FCFE calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data indicates notable fluctuations and an overall upward trend in cash flow metrics over the five-year period.
- Net Cash Provided by Operating Activities
- This metric experienced an initial increase from approximately 735 million USD in 2020 to about 1.02 billion USD in 2021, signifying stronger operating cash generation. The figure then declined significantly in 2022 to around 493 million USD, which may suggest a period of operational challenges or changes in working capital. However, a strong recovery and substantial growth followed in 2023, with net cash surging to over 2 billion USD, more than quadrupling the previous year’s lower point. The trend continued positively in 2024, reaching approximately 3.7 billion USD, indicating enhanced operational efficiency or increased profitability.
- Free Cash Flow to Equity (FCFE)
- The FCFE pattern largely mirrors the operating cash flow trend, with an increase from roughly 720 million USD in 2020 to 951 million USD in 2021. A subsequent decline in 2022 is again observed, with FCFE falling to around 448 million USD. Post-2022, there is a marked and consistent growth to nearly 2 billion USD in 2023 and about 3.68 billion USD in 2024, closely aligning with the net cash from operations, implying effective capital expenditure management and a strong ability to generate cash available to equity shareholders.
Overall, while 2022 appears as an anomalous year with declines in both operational cash generation and free cash flow, the following years demonstrate robust growth. This recovery could be attributed to improved operational performance, capital management, or strategic initiatives enhancing cash conversion and shareholder value. The upward trajectory in free cash flow to equity supports a positive outlook for dividend potential, share repurchases, or debt reduction moving forward.
Price to FCFE Ratio, Current
Arista Networks Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 1,255,921,431 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 3,676,203) |
| FCFE per share | 2.93 |
| Current share price (P) | 101.47 |
| Valuation Ratio | |
| P/FCFE | 34.67 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Apple Inc. | 30.50 |
| Cisco Systems Inc. | 9.24 |
| Dell Technologies Inc. | 152.06 |
| Super Micro Computer Inc. | — |
| P/FCFE, Sector | |
| Technology Hardware & Equipment | 26.49 |
| P/FCFE, Industry | |
| Information Technology | 45.88 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Arista Networks Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,261,122,596 | 1,250,534,448 | 1,225,581,536 | 1,231,066,312 | 1,221,305,168 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 3,676,203) | 1,999,580) | 448,169) | 951,120) | 719,730) | |
| FCFE per share3 | 2.92 | 1.60 | 0.37 | 0.77 | 0.59 | |
| Share price1, 4 | 103.92 | 66.38 | 35.37 | 32.49 | 19.44 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 35.65 | 41.51 | 96.72 | 42.05 | 32.99 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Apple Inc. | 32.77 | 30.63 | 22.26 | 23.27 | 24.40 | |
| Cisco Systems Inc. | 6.64 | 12.84 | 17.18 | 21.02 | 38.82 | |
| Dell Technologies Inc. | 32.94 | 9.06 | 33.54 | 14.15 | 5.64 | |
| Super Micro Computer Inc. | — | 41.38 | 139.27 | 13.81 | — | |
| P/FCFE, Sector | ||||||
| Technology Hardware & Equipment | 27.62 | 27.42 | 22.22 | 22.84 | 24.15 | |
| P/FCFE, Industry | ||||||
| Information Technology | 36.66 | 33.16 | 26.84 | 27.24 | 23.37 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,676,203,000 ÷ 1,261,122,596 = 2.92
4 Closing price as at the filing date of Arista Networks Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 103.92 ÷ 2.92 = 35.65
6 Click competitor name to see calculations.
- Share Price
- The share price exhibited a consistent upward trend over the five-year period. Starting at $19.44 at the end of 2020, it increased steadily each year, reaching $103.92 by the end of 2024. The growth accelerated particularly between 2022 and 2024, indicating rising investor confidence or improved market conditions.
- Free Cash Flow to Equity (FCFE) per Share
- The FCFE per share showed fluctuations during the period. It initially rose from $0.59 in 2020 to $0.77 in 2021, dipped significantly to $0.37 in 2022, and then experienced strong growth in the following years, reaching $2.92 by the end of 2024. This suggests variability in cash flow generation capabilities, with notable recovery and improvement in the later years.
- Price to FCFE (P/FCFE) Ratio
- The P/FCFE ratio fluctuated considerably. It started at 32.99 in 2020, increased to a peak of 96.72 in 2022, coinciding with the dip in FCFE per share, reflecting a higher valuation relative to FCFE. Subsequently, the ratio decreased to 35.65 by 2024, aligning with the substantial recovery in FCFE per share and reflecting a more normalized valuation.