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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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: 2024-12-31).
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, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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: 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 ratios over the five-year period reveal notable fluctuations and trends in valuation metrics for the company.
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibited variability, beginning at 37.42 in 2020, increasing to a peak of 47.57 in 2021, followed by a decline to 32.05 in 2022. It then rose again to 39.77 in 2023, and further increased to 45.95 in 2024. This indicates fluctuating market optimism and changing investor expectations regarding the earnings potential of the company.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio showed a similar pattern to the P/E ratio, starting at 33.93 in 2020 and increasing to 43.25 in 2021. There was a decline to 28.39 in 2022, followed by a recovery to 36.78 in 2023 and a rise to 44.51 in 2024. This pattern suggests variations in how investors value the company’s operating profitability across the years, reflecting changes in operational efficiency or operating income expectations.
- Price to Sales (P/S) Ratio
- The P/S ratio demonstrated an overall upward trend despite some volatility. It began at 10.24 in 2020, increased to 13.57 in 2021, dipped to 9.89 in 2022, then rose substantially to 14.17 in 2023 and peaked at 18.71 in 2024. This general increase indicates growing market valuation relative to sales, possibly reflecting improved revenue prospects or market positioning.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio steadily increased over the period, starting at 7.15 in 2020, rising to 10.05 in 2021, slightly decreasing to 8.87 in 2022, then increasing again to 11.5 in 2023 and 13.11 in 2024. The upward trajectory suggests improved investor confidence in the company’s net asset value and growth potential.
Overall, the data indicates rising market valuations relative to sales and book value, along with more variable valuation metrics based on earnings and operating profits. This may reflect dynamic investor sentiment, evolving operational performance, and expectations of future growth over the analyzed periods.
Price to Earnings (P/E)
Arista Networks Inc., historical P/E 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 | ||||||
| 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: 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.
2 2024 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 2024 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals significant growth and changes in key performance metrics over the five-year period from 2020 to 2024.
- Share Price
- The share price exhibits a marked upward trend, increasing steadily each year. Starting at $19.44 in 2020, it rose to $32.49 in 2021, further climbing to $35.37 in 2022. The growth accelerated markedly in the subsequent years, with the share price reaching $66.38 in 2023 and $103.92 in 2024. This represents a more than fivefold increase in the share price over the five-year period, indicating strong investor confidence and potentially positive market sentiment towards the company.
- Earnings Per Share (EPS)
- The earnings per share also demonstrate consistent and substantial growth. EPS increased from $0.52 in 2020 to $0.68 in 2021, then to $1.10 in 2022. The upward trajectory continued with EPS reaching $1.67 in 2023 and $2.26 in 2024. This represents a growth rate of more than four times the EPS value over the examined timeframe, reflecting improving profitability and operational performance.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio shows variability rather than a consistent trend. It started at 37.42 in 2020, peaked at 47.57 in 2021, and then declined significantly to 32.05 in 2022. Afterwards, the ratio increased again to 39.77 in 2023 and further to 45.95 in 2024. This fluctuation suggests changes in market valuation relative to earnings growth. Despite rising earnings, the higher P/E ratios in 2021, 2023, and 2024 could imply increased investor expectations or potentially premium valuation multiples being applied to the company’s stock.
Overall, the data indicates robust performance in terms of share price appreciation and earnings growth, accompanied by fluctuating but relatively high valuation multiples. The increasing share price and EPS reflect strengthening financial results, while the changing P/E ratio points to evolving market perceptions about the company's growth prospects and risk profile.
Price to Operating Profit (P/OP)
Arista Networks Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| 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: 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.
2 2024 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 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a strong upward trajectory over the five-year period. Starting at $19.44 at the end of 2020, it increased significantly to $103.92 by the end of 2024. This represents a substantial gain of over 400%, highlighting a robust market valuation growth.
- Operating Profit per Share
- Operating profit per share demonstrated a consistent and progressive increase throughout the observed periods. Beginning at $0.57 at the end of 2020, it rose steadily to reach $2.33 by the end of 2024. This steady growth indicates improving operating performance on a per-share basis.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio displayed some variability across the years. After starting at 33.93 in 2020, it peaked at 43.25 in 2021, decreased significantly to 28.39 in 2022, then rose again to 44.51 by the end of 2024. This fluctuation suggests changing market sentiment and valuation dynamics relative to operating profit.
- Overall Insights
- The data portrays a company with growing operating profitability and escalating share prices, indicating positive investor confidence and operational success. However, the oscillation in the Price to Operating Profit ratio implies that while earnings increased, market valuation relative to earnings fluctuated, possibly reflecting varying investor risk appetite or external market factors.
Price to Sales (P/S)
Arista Networks Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| 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: 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.
2 2024 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 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrated a consistent and significant upward trajectory over the analyzed period. Starting at $19.44 in 2020, it increased steadily each year, culminating at $103.92 in 2024. This represents more than a fivefold increase from the initial figure, indicating strong market confidence and substantial capital appreciation potential.
- Sales Per Share Trend
- Sales per share also exhibited a positive trend, growing from $1.90 in 2020 to $5.55 in 2024. This growth suggests a continuous improvement in revenue generation efficiency on a per-share basis, with sales nearly tripling over the five-year timeframe.
- Price-to-Sales (P/S) Ratio Evolution
- The P/S ratio experienced fluctuations but overall showed an increasing trend. Beginning at 10.24 in 2020, it rose to 13.57 in 2021, declined to 9.89 in 2022, and then climbed again to 18.71 by 2024. The volatility in 2022 contrasts with the general upward momentum, which may reflect changing market perceptions of valuation relative to sales or variations in sales and price dynamics.
- Insights
- The simultaneous increase in share price and sales per share reflects positively on the firm’s performance and investor expectations. The rising P/S ratio towards the later years suggests growing market optimism or an enhanced valuation premium placed on each dollar of sales. The dip in the P/S ratio in 2022 potentially highlights a temporary valuation adjustment or divergence in the rate of sales growth versus share price appreciation during that period.
Price to Book Value (P/BV)
Arista Networks Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| 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: 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.
2 2024 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 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price has exhibited a consistent upward trend over the five-year period. It increased significantly from $19.44 in 2020 to $103.92 in 2024, representing strong market appreciation and investor confidence. This growth was particularly pronounced between 2022 and 2024, where the share price nearly tripled from $35.37 to $103.92.
- Book Value Per Share (BVPS)
- Book value per share showed steady growth during the same period, rising from $2.72 in 2020 to $7.93 in 2024. This increase suggests an enhancement in the company’s net asset value on a per-share basis, indicating improving financial fundamentals. The annual increases were consistent, with no periods of decline or stagnation.
- Price-to-Book Value (P/BV) Ratio
- The P/BV ratio demonstrated volatility but generally trended upwards, moving from 7.15 in 2020 to 13.11 in 2024. While the ratio initially peaked at 10.05 in 2021, it dipped slightly to 8.87 in 2022 before increasing sharply in the following years. This pattern suggests that the market valuation of the company grew at a faster rate than its book value, reflecting heightened investor expectations and possibly improved growth prospects or profitability.