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: 2025-12-31), 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).
The financial information reveals a notable pattern in both net cash provided by operating activities and free cash flow to equity (FCFE) over the five-year period. Both metrics experienced volatility, with a significant increase in the most recent years.
- Net Cash from Operations
- Net cash provided by operating activities decreased substantially from US$1,015,856 thousand in 2021 to US$492,813 thousand in 2022. However, a strong recovery was observed in 2023, reaching US$2,034,014 thousand, and continued to climb to US$3,708,235 thousand in 2024 and US$4,371,900 thousand in 2025. This indicates improving operational cash generation in the later years of the observed period.
- Free Cash Flow to Equity (FCFE)
- FCFE mirrored the trend in operating cash flow. It declined from US$951,120 thousand in 2021 to US$448,169 thousand in 2022. A substantial increase followed, with FCFE reaching US$1,999,580 thousand in 2023, US$3,676,203 thousand in 2024, and US$4,252,400 thousand in 2025. The consistent growth in FCFE suggests an increasing ability to fund shareholder returns, reinvest in the business, or pursue strategic opportunities.
The correlation between net cash from operations and FCFE is strong, suggesting that changes in operational performance are directly impacting the cash available to equity holders. The significant increases in both metrics in 2023, 2024, and 2025 represent a positive development, potentially indicating improved profitability, efficient working capital management, or a combination of both.
The decline observed in 2022 warrants further investigation to understand the underlying causes. However, the subsequent recovery and continued growth demonstrate a positive trajectory for cash generation and equity value.
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Price to FCFE Ratio, Current
Arista Networks Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 1,256,537,906 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 4,252,400) |
| FCFE per share | 3.38 |
| Current share price (P) | 135.88 |
| Valuation Ratio | |
| P/FCFE | 40.15 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Apple Inc. | 40.89 |
| Cisco Systems Inc. | 29.72 |
| Dell Technologies Inc. | 7.07 |
| Super Micro Computer Inc. | 3.18 |
| P/FCFE, Sector | |
| Technology Hardware & Equipment | 39.16 |
| P/FCFE, Industry | |
| Information Technology | 45.41 |
Based on: 10-K (reporting date: 2025-12-31).
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, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,256,537,906 | 1,261,122,596 | 1,250,534,448 | 1,225,581,536 | 1,231,066,312 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 4,252,400) | 3,676,203) | 1,999,580) | 448,169) | 951,120) | |
| FCFE per share3 | 3.38 | 2.92 | 1.60 | 0.37 | 0.77 | |
| Share price1, 4 | 142.58 | 103.92 | 66.38 | 35.37 | 32.49 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 42.13 | 35.65 | 41.51 | 96.72 | 42.05 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Apple Inc. | 44.25 | 32.77 | 30.63 | 22.26 | 23.27 | |
| Cisco Systems Inc. | 25.54 | 6.64 | 12.84 | 17.18 | 21.02 | |
| Dell Technologies Inc. | 123.86 | 32.94 | 9.06 | 33.54 | 14.15 | |
| Super Micro Computer Inc. | 6.44 | — | 41.38 | 139.27 | 13.81 | |
| P/FCFE, Sector | ||||||
| Technology Hardware & Equipment | 41.38 | 27.62 | 27.42 | 22.22 | 22.84 | |
| P/FCFE, Industry | ||||||
| Information Technology | 45.27 | 36.64 | 33.18 | 27.06 | 27.42 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 4,252,400,000 ÷ 1,256,537,906 = 3.38
4 Closing price as at the filing date of Arista Networks Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 142.58 ÷ 3.38 = 42.13
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibited considerable fluctuation over the observed period. Initial values increased significantly before stabilizing and showing a slight upward trend towards the end of the period. Share price demonstrated a consistent upward trajectory, while Free Cash Flow to Equity per share experienced volatility, impacting the overall P/FCFE ratio.
- Share Price
- The share price increased steadily from US$32.49 in 2021 to US$142.58 in 2025. The most substantial increase occurred between 2022 and 2023, followed by continued growth, though at a decreasing rate, through 2025.
- Free Cash Flow to Equity per Share
- FCFE per share decreased from US$0.77 in 2021 to US$0.37 in 2022, representing a significant decline. However, it then increased substantially to US$1.60 in 2023 and continued to rise, reaching US$3.38 in 2025. This indicates improving cash flow generation for equity holders over the latter part of the period.
- Price to FCFE Ratio
- The P/FCFE ratio began at 42.05 in 2021 and rose sharply to 96.72 in 2022, coinciding with the decrease in FCFE per share. It then decreased to 41.51 in 2023 as FCFE per share increased. The ratio continued to decline to 35.65 in 2024 before increasing slightly to 42.13 in 2025. The fluctuations suggest that investor valuation, relative to the cash flow available to equity holders, was sensitive to changes in FCFE per share. The ratio remained relatively stable between 41 and 43 in the first and last years of the period.
The observed relationship between share price, FCFE per share, and the P/FCFE ratio suggests that the market’s valuation of the equity is influenced by the company’s ability to generate cash flow available to equity holders. Periods of increasing FCFE per share were generally associated with a decreasing P/FCFE ratio, and vice versa.
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