Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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Arista Networks Inc. pages available for free this week:
- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Selected Financial Data since 2014
- Net Profit Margin since 2014
- Return on Assets (ROA) since 2014
- Current Ratio since 2014
- Price to Earnings (P/E) since 2014
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Current Valuation Ratios
Arista Networks Inc., current price multiples
| Arista Networks Inc. | Apple Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Super Micro Computer Inc. | Technology Hardware & Equipment | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | ||||||||||
| No. shares of common stock outstanding | ||||||||||
| Growth rate (g) | ||||||||||
| Earnings per share (EPS) | ||||||||||
| Next year expected EPS | ||||||||||
| Operating profit per share | ||||||||||
| Sales per share | ||||||||||
| Book value per share (BVPS) | ||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | ||||||||||
| Price to next year expected earnings | ||||||||||
| Price-earnings-growth (PEG) | ||||||||||
| Price to operating profit (P/OP) | ||||||||||
| Price to sales (P/S) | ||||||||||
| Price to book value (P/BV) | ||||||||||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Arista Networks Inc., historical price multiples
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
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 valuation ratios demonstrate generally increasing trends across the five-year period. Price multiples consistently rose from 2021 to 2025, suggesting increasing investor optimism or potentially overvaluation depending on underlying fundamentals not presented here. The rate of increase varied across the different multiples.
- Price to Earnings (P/E)
- The Price to Earnings ratio experienced a decrease from 47.57 in 2021 to 32.05 in 2022, before steadily increasing to 51.02 by 2025. This indicates that investors were initially willing to pay less for each dollar of earnings, but subsequently increased their valuation of the company’s earnings potential. The increase from 2022 through 2025 is particularly notable.
- Price to Operating Profit (P/OP)
- Similar to the P/E ratio, the Price to Operating Profit ratio decreased from 43.25 in 2021 to 28.39 in 2022. It then exhibited a consistent upward trend, reaching 46.46 in 2025. The pattern mirrors that of the P/E ratio, suggesting a similar driver of valuation changes related to operating profitability.
- Price to Sales (P/S)
- The Price to Sales ratio also decreased in 2022, moving from 13.57 to 9.89. However, the subsequent increase was more pronounced than the P/E and P/OP ratios, rising to 19.89 in 2025. This suggests that revenue growth became a more significant factor in the company’s valuation over time, or that investors placed a higher premium on each dollar of sales.
- Price to Book Value (P/BV)
- The Price to Book Value ratio showed a more moderate increase compared to the other multiples. It decreased slightly from 10.05 in 2021 to 8.87 in 2022, then increased steadily to 14.48 in 2025. This indicates a growing premium placed on the company’s net asset value, but at a slower pace than the earnings and sales multiples.
Overall, the observed trends suggest a strengthening valuation across all examined price multiples. The increasing ratios indicate a growing investor appetite for the company’s stock, potentially driven by improving financial performance or changing market sentiment. The most significant increases were observed in the Price to Sales ratio, followed by the Price to Earnings and Price to Operating Profit ratios.
Price to Earnings (P/E)
Arista Networks Inc., historical P/E 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 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (in thousands) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Apple Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| P/E Ratio, Industry | ||||||
| Information Technology | ||||||
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.
2 2025 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Arista Networks Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibits an overall increasing trend from 2021 to 2025, although with some fluctuation. Simultaneously, both the share price and earnings per share (EPS) demonstrate consistent growth over the same period.
- Share Price
- The share price increased steadily throughout the observed period. Starting at US$32.49 in 2021, it rose to US$142.58 by 2025, representing a substantial overall increase. The rate of increase appears to accelerate in later years.
- Earnings Per Share (EPS)
- EPS also shows a consistent upward trajectory. Beginning at US$0.68 in 2021, EPS reached US$2.79 in 2025. The growth in EPS appears relatively consistent year-over-year.
- Price to Earnings (P/E) Ratio
- The P/E ratio began at 47.57 in 2021, decreased to 32.05 in 2022, and then increased to 51.02 by 2025. While the ratio experienced a decline between 2021 and 2022, it subsequently trended upwards. The increase in the P/E ratio is not directly proportional to the growth in share price and EPS, suggesting that investor expectations regarding future earnings growth may be influencing the valuation.
The observed increase in the P/E ratio, coupled with rising share price and EPS, suggests increasing investor confidence. However, the fluctuations in the P/E ratio warrant further investigation to determine the underlying drivers of these changes and assess the sustainability of the current valuation.
Price to Operating Profit (P/OP)
Arista Networks Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Income from operations (in thousands) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Apple Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| P/OP Ratio, Industry | ||||||
| Information Technology | ||||||
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.
2 2025 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Arista Networks Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The Price to Operating Profit (P/OP) ratio for the observed period demonstrates a fluctuating pattern. Initially, the ratio decreased, followed by a period of increase and stabilization. The share price and operating profit per share both exhibited growth throughout the period, influencing the observed P/OP trends.
- Overall Trend
- The P/OP ratio began at 43.25 in 2021, decreased to 28.39 in 2022, then increased to 36.78 in 2023. Further increases were observed in 2024 (44.51) and 2025 (46.46), indicating a generally upward trajectory over the five-year period, though not consistently.
- Share Price Influence
- The share price increased steadily from US$32.49 in 2021 to US$142.58 in 2025. This substantial growth in share price contributed to the increases in the P/OP ratio, particularly in the later years of the period.
- Operating Profit per Share Influence
- Operating profit per share also increased consistently, moving from US$0.75 in 2021 to US$3.07 in 2025. While this growth would typically exert downward pressure on the P/OP ratio, the more significant increase in share price ultimately drove the overall trend.
- Ratio Fluctuation
- The decrease in the P/OP ratio from 2021 to 2022 suggests that the increase in operating profit per share outpaced the growth in share price during that year. However, from 2022 onwards, share price growth consistently exceeded the growth in operating profit per share, leading to the subsequent increases in the P/OP ratio.
- Recent Stabilization
- The P/OP ratio’s movement from 44.51 in 2024 to 46.46 in 2025 indicates a potential stabilization, with the rate of increase slowing down. This could suggest a convergence between share price appreciation and earnings growth.
Price to Sales (P/S)
Arista Networks Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenue (in thousands) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Apple Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| P/S Ratio, Industry | ||||||
| Information Technology | ||||||
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.
2 2025 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Arista Networks Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The price to sales ratio exhibited a fluctuating pattern over the five-year period. Initial observations reveal a decrease followed by an increase, culminating in a relatively stable, high valuation by the end of the observed timeframe.
- Price to Sales (P/S) Ratio - Overall Trend
- The P/S ratio began at 13.57 in 2021, decreased to 9.89 in 2022, and then increased consistently through 2025, reaching 19.89. This indicates an increasing willingness of investors to pay for each dollar of sales generated by the company over the period.
- Price to Sales (P/S) Ratio - Initial Decrease (2021-2022)
- A notable decrease in the P/S ratio occurred between 2021 and 2022. This coincided with an increase in sales per share, suggesting that while the share price also increased, sales grew at a faster rate, resulting in a lower ratio. This could indicate improved operational efficiency or increased investor confidence in future sales growth.
- Price to Sales (P/S) Ratio - Subsequent Increase (2022-2025)
- From 2022 to 2025, the P/S ratio demonstrated a consistent upward trend. While sales per share continued to increase, the share price experienced more substantial growth. This suggests that investor expectations regarding future growth and profitability rose significantly, driving up the share price relative to sales. The rate of increase slowed slightly between 2024 and 2025.
- Relationship with Sales per Share
- Sales per share increased steadily throughout the period, from 2.39 in 2021 to 7.17 in 2025. However, the P/S ratio did not move in direct proportion to sales per share, indicating that market sentiment and investor expectations played a significant role in determining the valuation. The increasing P/S ratio alongside rising sales per share suggests a growing premium placed on the company’s revenue generation capabilities.
In conclusion, the observed trend in the P/S ratio suggests evolving investor perception of the company’s value, shifting from a period of relative undervaluation in 2022 to a higher valuation by 2025, driven by both increasing sales and heightened investor expectations.
Price to Book Value (P/BV)
Arista Networks Inc., historical P/BV 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 | ||||||
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in thousands) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Apple Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| P/BV Ratio, Industry | ||||||
| Information Technology | ||||||
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.
2 2025 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Arista Networks Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The price to book value ratio exhibits an overall increasing trend between December 31, 2021, and December 31, 2025. While fluctuations are present, the ratio demonstrates a consistent expansion in valuation relative to the company’s net asset value.
- Price to Book Value (P/BV) Trend
- In December 31, 2021, the P/BV ratio stood at 10.05. It decreased to 8.87 by December 31, 2022, representing a decline in market valuation relative to book value. However, the ratio subsequently increased to 11.50 as of December 31, 2023, and continued its upward trajectory, reaching 13.11 by December 31, 2024. This trend culminated in a ratio of 14.48 on December 31, 2025.
The share price and book value per share both increased over the period, but the share price experienced a more substantial rate of growth. This differential growth rate is the primary driver of the observed increase in the P/BV ratio.
- Share Price and Book Value Per Share
- The share price increased from US$32.49 in December 31, 2021, to US$142.58 in December 31, 2025. This represents a significant increase over the five-year period. Simultaneously, the book value per share rose from US$3.23 to US$9.84. While the book value per share also increased, the percentage increase was considerably less than that of the share price.
The increasing P/BV ratio suggests that investors are willing to pay a progressively larger premium for each dollar of net asset value. This could indicate growing confidence in the company’s future earnings potential and its ability to generate returns exceeding its book value.