Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
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).
Historical Valuation Ratios (Summary)
Arista Networks Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The valuation metrics for the period between March 2022 and June 2026 exhibit a pattern of initial contraction followed by significant expansion. A consistent trough across all ratios is observed in the first quarter of 2023, succeeded by a multi-year growth phase punctuated by a temporary correction in the first quarter of 2025.
- Price-to-Earnings (P/E) and Price-to-Operating Profit (P/OP)
- Both ratios demonstrate a high degree of correlation, tracking the market's perception of profitability. The P/E ratio declined from 37.69 in March 2022 to a low of 27.44 in March 2023 before trending upward to reach 61.53 by June 2026. Similarly, the P/OP ratio shifted from 35.28 in early 2022 to 24.01 in early 2023, eventually ascending to 54.73. This indicates a substantial increase in the market premium placed on earnings and operating efficiency over the observed period.
- Price-to-Sales (P/S)
- The P/S ratio reflects a significant expansion in valuation relative to revenue. After reaching a minimum of 8.57 in March 2023, the ratio climbed to 19.07 by September 2024. Despite a retreat to 14.60 in March 2025, the ratio experienced a sharp subsequent increase, peaking at 23.61 by June 2026, which suggests heightened investor expectations for future revenue growth or margin expansion.
- Price-to-Book Value (P/BV)
- Market valuation relative to equity followed a similar upward trajectory. The P/BV ratio moved from 8.46 in March 2022 to a low of 7.81 in March 2023, before scaling to 16.82 by June 2026. The volatility observed in the first quarter of 2025, where the ratio dropped to 10.73 before rebounding, aligns with the movements seen in the other valuation multiples.
The synchronized movement of these ratios suggests that valuation changes were driven primarily by stock price volatility rather than isolated shifts in underlying financial components. The aggressive rise in all multiples toward 2026 indicates a significant increase in the valuation premium attributed to the equity.
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Price to Earnings (P/E)
Arista Networks Inc., historical P/E calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,261,224,648 | 1,259,202,593 | 1,256,537,906 | 1,259,285,070 | 1,256,865,381 | 1,255,921,431 | 1,261,122,596 | 1,259,759,532 | 1,256,611,500 | 1,253,452,388 | 1,250,534,448 | 1,244,400,568 | 1,238,322,520 | 1,233,131,196 | 1,225,581,536 | 1,222,290,464 | 1,217,121,832 | 1,233,054,152 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Net income (in thousands) | 1,212,900) | 1,022,900) | 955,800) | 853,000) | 888,800) | 813,800) | 800,996) | 747,938) | 665,428) | 637,692) | 613,636) | 545,327) | 491,885) | 436,473) | 427,089) | 353,999) | 299,099) | 272,259) | ||||||
| Earnings per share (EPS)2 | 3.21 | 2.95 | 2.79 | 2.67 | 2.59 | 2.41 | 2.26 | 2.12 | 1.96 | 1.83 | 1.67 | 1.53 | 1.38 | 1.23 | 1.10 | 0.95 | 0.85 | 0.76 | ||||||
| Share price1, 3 | 197.31 | 147.06 | 142.58 | 140.42 | 138.78 | 86.45 | 103.92 | 100.11 | 86.64 | 72.92 | 66.38 | 50.09 | 46.40 | 33.75 | 35.37 | 31.93 | 29.29 | 28.51 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/E ratio4 | 61.53 | 49.77 | 51.02 | 52.68 | 53.64 | 35.85 | 45.95 | 47.33 | 44.22 | 39.94 | 39.77 | 32.79 | 33.61 | 27.44 | 32.05 | 33.51 | 34.45 | 37.69 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/E Ratio, Competitors5 | ||||||||||||||||||||||||
| Apple Inc. | 33.57 | 32.34 | 35.67 | 30.25 | 31.52 | 36.87 | 35.95 | 32.79 | 28.01 | 28.44 | 28.33 | 30.03 | 28.94 | 25.69 | 24.82 | 26.21 | 25.03 | 27.64 | ||||||
| Cisco Systems Inc. | 27.41 | 29.60 | 26.28 | 25.65 | 27.97 | 24.17 | 19.00 | 15.61 | 14.54 | 14.30 | 18.26 | 17.20 | 18.01 | 17.28 | 15.78 | 15.18 | 19.78 | 20.46 | ||||||
| Dell Technologies Inc. | 17.10 | 16.86 | 15.02 | 19.39 | 18.49 | 25.76 | 25.12 | 18.34 | 26.87 | 17.90 | 11.94 | 16.85 | 5.08 | 6.44 | 7.31 | 6.58 | 19.68 | 19.66 | ||||||
| Lumentum Holdings Inc. | 132.11 | 146.68 | 318.36 | — | — | — | — | — | — | — | — | — | 144.42 | 34.39 | 31.19 | 33.26 | 16.19 | 15.51 | ||||||
| Super Micro Computer Inc. | 23.60 | 29.94 | 24.91 | 17.38 | 18.71 | 19.03 | 23.45 | 46.35 | 44.27 | 22.19 | 21.10 | 12.26 | 7.82 | 9.13 | 12.72 | 14.48 | 15.76 | 21.50 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2026 Calculation
EPS
= (Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025)
÷ No. shares of common stock outstanding
= (1,212,900,000 + 1,022,900,000 + 955,800,000 + 853,000,000)
÷ 1,261,224,648 = 3.21
3 Closing price as at the filing date of Arista Networks Inc. Quarterly or Annual Report.
4 Q2 2026 Calculation
P/E ratio = Share price ÷ EPS
= 197.31 ÷ 3.21 = 61.53
5 Click competitor name to see calculations.
An analysis of the valuation metrics reveals a period of significant share price appreciation and consistent earnings growth, leading to a substantial expansion in the price-to-earnings multiple over the observed timeframe.
- Share Price Performance
- The share price exhibited a strong overall upward trajectory, rising from 28.51 US$ in March 2022 to 197.31 US$ by June 2026. While the growth was generally consistent, a notable contraction occurred in March 2025, where the price fell to 86.45 US$ from a previous high of 103.92 US$. This was followed by a rapid recovery and an accelerated climb through 2026.
- Earnings Per Share (EPS) Trends
- Earnings per share demonstrated linear and uninterrupted growth throughout the entire period. Starting at 0.76 US$ in March 2022, the EPS increased every consecutive quarter, reaching 3.21 US$ by June 2026. This steady climb indicates a stable and scalable increase in profitability that remained unaffected by the volatility seen in the share price.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio experienced three distinct phases. Initially, from March 2022 to March 2023, the ratio trended downward from 37.69 to 27.44, suggesting a period of valuation compression. From June 2023 to December 2024, the ratio became more volatile but generally climbed, peaking at 47.33 in September 2024. Following a temporary dip to 35.85 in March 2025, the multiple entered a phase of aggressive expansion, culminating in a peak of 61.53 in June 2026.
- Valuation Correlation
- The divergence between the steady growth of earnings and the exponential growth of the share price resulted in a significant increase in the valuation multiple. The transition from a P/E of 37.69 to 61.53 indicates that market participants assigned a higher premium to each dollar of earnings over time, reflecting increased growth expectations that outpaced the actual realized growth in EPS.
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Price to Operating Profit (P/OP)
Arista Networks Inc., historical P/OP calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,261,224,648 | 1,259,202,593 | 1,256,537,906 | 1,259,285,070 | 1,256,865,381 | 1,255,921,431 | 1,261,122,596 | 1,259,759,532 | 1,256,611,500 | 1,253,452,388 | 1,250,534,448 | 1,244,400,568 | 1,238,322,520 | 1,233,131,196 | 1,225,581,536 | 1,222,290,464 | 1,217,121,832 | 1,233,054,152 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Income from operations (in thousands) | 1,378,000) | 1,157,800) | 1,032,900) | 978,200) | 986,200) | 858,800) | 799,652) | 785,250) | 699,573) | 660,141) | 639,914) | 602,695) | 530,062) | 484,578) | 468,919) | 417,347) | 362,853) | 277,987) | ||||||
| Operating profit per share2 | 3.61 | 3.30 | 3.07 | 2.88 | 2.73 | 2.50 | 2.33 | 2.21 | 2.07 | 1.94 | 1.81 | 1.68 | 1.54 | 1.41 | 1.25 | 1.08 | 0.94 | 0.81 | ||||||
| Share price1, 3 | 197.31 | 147.06 | 142.58 | 140.42 | 138.78 | 86.45 | 103.92 | 100.11 | 86.64 | 72.92 | 66.38 | 50.09 | 46.40 | 33.75 | 35.37 | 31.93 | 29.29 | 28.51 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/OP ratio4 | 54.73 | 44.57 | 46.46 | 48.81 | 50.86 | 34.54 | 44.51 | 45.29 | 41.84 | 37.57 | 36.78 | 29.88 | 30.23 | 24.01 | 28.39 | 29.48 | 31.27 | 35.28 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||
| Apple Inc. | 27.92 | 27.00 | 30.03 | 23.07 | 24.08 | 28.21 | 27.35 | 27.72 | 23.78 | 24.19 | 24.04 | 25.35 | 24.31 | 21.45 | 20.74 | 22.07 | 21.37 | 23.78 | ||||||
| Cisco Systems Inc. | 22.60 | 23.95 | 22.75 | 22.24 | 25.00 | 22.12 | 16.10 | 13.69 | 12.56 | 12.32 | 15.32 | 13.88 | 14.67 | 14.12 | 13.35 | 12.91 | 16.75 | 17.02 | ||||||
| Dell Technologies Inc. | 12.13 | 11.94 | 11.06 | 14.69 | 14.04 | 18.28 | 15.48 | 9.96 | 9.87 | 6.61 | 5.05 | 4.98 | 5.04 | 7.09 | 8.73 | 8.55 | 14.00 | 14.47 | ||||||
| Lumentum Holdings Inc. | 1,334.92 | — | — | — | — | — | — | — | — | — | — | — | 44.04 | 20.03 | 20.45 | 21.03 | 12.14 | 11.74 | ||||||
| Super Micro Computer Inc. | 19.96 | 25.63 | 20.85 | 15.24 | 17.50 | 17.47 | 22.32 | 42.32 | 37.27 | 19.05 | 17.74 | 10.29 | 6.55 | 7.70 | 10.82 | 12.71 | 14.45 | 19.41 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2026 Calculation
Operating profit per share
= (Income from operationsQ2 2026
+ Income from operationsQ1 2026
+ Income from operationsQ4 2025
+ Income from operationsQ3 2025)
÷ No. shares of common stock outstanding
= (1,378,000,000 + 1,157,800,000 + 1,032,900,000 + 978,200,000)
÷ 1,261,224,648 = 3.61
3 Closing price as at the filing date of Arista Networks Inc. Quarterly or Annual Report.
4 Q2 2026 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 197.31 ÷ 3.61 = 54.73
5 Click competitor name to see calculations.
The financial data indicates a period of consistent operational growth coupled with increasing market valuation volatility. While operating profit per share maintained a steady upward trajectory throughout the observed period, the share price experienced significant fluctuations, leading to a widening and volatile Price to Operating Profit (P/OP) ratio.
- Operating Profit per Share Trends
- A consistent and linear increase in operating profit per share is observed, rising from $0.81 in March 2022 to $3.61 by June 2026. This growth remained uninterrupted across all reported quarters, demonstrating a steady improvement in fundamental operational efficiency and profitability.
- Share Price Behavior
- The share price exhibited a strong overall upward trend, though it was characterized by uneven acceleration. A significant period of growth occurred between March 2023 and September 2024, followed by a sharp correction in March 2025 where the price fell to $86.45. This was followed by an aggressive surge, culminating in a peak of $197.31 by June 2026.
- P/OP Ratio Analysis
- The P/OP ratio reveals three distinct valuation phases. Between March 2022 and March 2023, the ratio contracted from 35.28 to 24.01, indicating that operating profit growth outpaced share price appreciation. From June 2023 through September 2024, the ratio expanded to 45.29, reflecting a shift where market pricing began to outrun operational gains. After a temporary contraction to 34.54 in March 2025, the ratio climbed sharply to a period high of 54.73 by June 2026, suggesting an expansion in market multiples and increased investor expectations relative to current operating performance.
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Price to Sales (P/S)
Arista Networks Inc., historical P/S calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,261,224,648 | 1,259,202,593 | 1,256,537,906 | 1,259,285,070 | 1,256,865,381 | 1,255,921,431 | 1,261,122,596 | 1,259,759,532 | 1,256,611,500 | 1,253,452,388 | 1,250,534,448 | 1,244,400,568 | 1,238,322,520 | 1,233,131,196 | 1,225,581,536 | 1,222,290,464 | 1,217,121,832 | 1,233,054,152 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Revenue (in thousands) | 3,035,700) | 2,709,000) | 2,487,800) | 2,308,300) | 2,204,800) | 2,004,800) | 1,930,436) | 1,810,936) | 1,690,400) | 1,571,374) | 1,540,437) | 1,509,456) | 1,458,924) | 1,351,351) | 1,275,552) | 1,176,801) | 1,051,891) | 877,066) | ||||||
| Sales per share2 | 8.36 | 7.71 | 7.17 | 6.71 | 6.33 | 5.92 | 5.55 | 5.25 | 5.02 | 4.85 | 4.69 | 4.50 | 4.25 | 3.94 | 3.57 | 3.22 | 2.88 | 2.56 | ||||||
| Share price1, 3 | 197.31 | 147.06 | 142.58 | 140.42 | 138.78 | 86.45 | 103.92 | 100.11 | 86.64 | 72.92 | 66.38 | 50.09 | 46.40 | 33.75 | 35.37 | 31.93 | 29.29 | 28.51 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/S ratio4 | 23.61 | 19.07 | 19.89 | 20.93 | 21.94 | 14.60 | 18.71 | 19.07 | 17.25 | 15.03 | 14.17 | 11.14 | 10.92 | 8.57 | 9.89 | 9.93 | 10.18 | 11.13 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/S Ratio, Competitors5 | ||||||||||||||||||||||||
| Apple Inc. | 9.11 | 8.74 | 9.60 | 7.35 | 7.66 | 8.96 | 8.62 | 8.67 | 7.37 | 7.44 | 7.17 | 7.41 | 7.09 | 6.31 | 6.28 | 6.74 | 6.61 | 7.35 | ||||||
| Cisco Systems Inc. | 5.14 | 5.30 | 4.72 | 4.52 | 4.74 | 4.29 | 3.64 | 3.42 | 3.42 | 3.35 | 4.04 | 3.59 | 3.83 | 3.80 | 3.62 | 3.53 | 4.54 | 4.59 | ||||||
| Dell Technologies Inc. | 0.82 | 0.80 | 0.72 | 0.87 | 0.82 | 1.04 | 0.91 | 0.54 | 0.55 | 0.36 | 0.28 | 0.29 | 0.26 | 0.35 | 0.40 | 0.45 | 0.77 | 0.83 | ||||||
| Lumentum Holdings Inc. | 15.79 | 8.96 | 5.01 | 3.12 | 4.54 | 4.18 | 2.82 | 1.97 | 2.14 | 1.82 | 2.01 | 1.74 | 2.26 | 2.27 | 3.62 | 3.67 | 3.65 | 3.67 | ||||||
| Super Micro Computer Inc. | 0.73 | 1.13 | 1.19 | 0.93 | 1.30 | 1.44 | 1.80 | 4.11 | 3.50 | 1.84 | 1.90 | 1.10 | 0.68 | 0.67 | 0.70 | 0.57 | 0.47 | 0.62 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2026 Calculation
Sales per share
= (RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025)
÷ No. shares of common stock outstanding
= (3,035,700,000 + 2,709,000,000 + 2,487,800,000 + 2,308,300,000)
÷ 1,261,224,648 = 8.36
3 Closing price as at the filing date of Arista Networks Inc. Quarterly or Annual Report.
4 Q2 2026 Calculation
P/S ratio = Share price ÷ Sales per share
= 197.31 ÷ 8.36 = 23.61
5 Click competitor name to see calculations.
The analysis of the Price to Sales (P/S) ratio reveals a substantial expansion in valuation multiples from the first quarter of 2022 through the second quarter of 2026. While sales per share have grown consistently, the share price has accelerated at a significantly faster pace, resulting in a marked increase in the P/S ratio over the observed period.
- Share Price Trajectory
- The share price exhibits a strong overall upward trend, increasing from US$ 28.51 in March 2022 to US$ 197.31 by June 2026. A notable period of volatility is observed between December 2024 and March 2025, where the price experienced a temporary correction before entering a phase of aggressive growth.
- Sales per Share Growth
- Sales per share demonstrate a steady and linear increase throughout the entire timeframe, rising from US$ 2.56 to US$ 8.36. This consistent growth indicates a stable upward trend in revenue generation on a per-share basis, independent of market valuation fluctuations.
- P/S Ratio Dynamics
- The P/S ratio transitioned through three distinct phases. From March 2022 to March 2023, the ratio experienced a slight contraction, moving from 11.13 to a low of 8.57. This was followed by a period of significant expansion, with the ratio climbing to 19.07 by September 2024. After a brief correction to 14.60 in March 2025, the multiple surged again, reaching a peak of 23.61 by June 2026.
- Valuation Insights
- The divergence between the linear growth of sales and the exponential growth of the share price indicates a significant market re-rating. The shift from a P/S ratio range of approximately 8-11x to a range exceeding 23x suggests that the market is attributing a much higher premium to each dollar of revenue, reflecting increased investor optimism or higher growth expectations.
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Price to Book Value (P/BV)
Arista Networks Inc., historical P/BV calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,261,224,648 | 1,259,202,593 | 1,256,537,906 | 1,259,285,070 | 1,256,865,381 | 1,255,921,431 | 1,261,122,596 | 1,259,759,532 | 1,256,611,500 | 1,253,452,388 | 1,250,534,448 | 1,244,400,568 | 1,238,322,520 | 1,233,131,196 | 1,225,581,536 | 1,222,290,464 | 1,217,121,832 | 1,233,054,152 | ||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||
| Stockholders’ equity (in thousands) | 14,797,700) | 13,487,100) | 12,370,500) | 11,907,100) | 10,901,600) | 10,119,100) | 9,994,807) | 9,245,889) | 8,430,808) | 7,862,315) | 7,219,059) | 6,505,555) | 5,857,582) | 5,329,174) | 4,885,820) | 4,385,218) | 4,005,792) | 4,153,177) | ||||||
| Book value per share (BVPS)2 | 11.73 | 10.71 | 9.84 | 9.46 | 8.67 | 8.06 | 7.93 | 7.34 | 6.71 | 6.27 | 5.77 | 5.23 | 4.73 | 4.32 | 3.99 | 3.59 | 3.29 | 3.37 | ||||||
| Share price1, 3 | 197.31 | 147.06 | 142.58 | 140.42 | 138.78 | 86.45 | 103.92 | 100.11 | 86.64 | 72.92 | 66.38 | 50.09 | 46.40 | 33.75 | 35.37 | 31.93 | 29.29 | 28.51 | ||||||
| Valuation Ratio | ||||||||||||||||||||||||
| P/BV ratio4 | 16.82 | 13.73 | 14.48 | 14.85 | 16.00 | 10.73 | 13.11 | 13.64 | 12.91 | 11.63 | 11.50 | 9.58 | 9.81 | 7.81 | 8.87 | 8.90 | 8.90 | 8.46 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||
| Apple Inc. | 38.64 | 43.20 | 54.18 | 45.62 | 45.92 | 53.11 | 59.17 | 50.11 | 37.90 | 38.73 | 44.21 | 47.21 | 43.92 | 43.09 | 48.89 | 44.95 | 37.86 | 38.64 | ||||||
| Cisco Systems Inc. | 6.36 | 6.52 | 5.71 | 5.47 | 5.64 | 5.01 | 4.31 | 4.13 | 4.23 | 4.30 | 5.19 | 4.66 | 4.91 | 4.94 | 4.69 | 4.51 | 5.92 | 5.46 | ||||||
| Dell Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 4.99 | 15.40 | 22.52 | ||||||
| Lumentum Holdings Inc. | 39.26 | 21.13 | 7.27 | 5.23 | 7.35 | 6.43 | 4.01 | 2.38 | 2.40 | 2.19 | 2.62 | 2.05 | 2.68 | 2.64 | 3.31 | 3.23 | 3.08 | 3.24 | ||||||
| Super Micro Computer Inc. | 2.95 | 3.64 | 4.15 | 3.14 | 4.33 | 4.60 | 4.99 | 9.55 | 10.54 | 6.28 | 6.85 | 4.07 | 2.49 | 2.49 | 2.54 | 2.09 | 1.66 | 2.10 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2026 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 14,797,700,000 ÷ 1,261,224,648 = 11.73
3 Closing price as at the filing date of Arista Networks Inc. Quarterly or Annual Report.
4 Q2 2026 Calculation
P/BV ratio = Share price ÷ BVPS
= 197.31 ÷ 11.73 = 16.82
5 Click competitor name to see calculations.
The analysis of valuation ratios reveals a significant expansion in the market's valuation of the company relative to its book value from March 2022 through June 2026. While the book value per share grew consistently, the share price experienced more aggressive growth, leading to a substantially higher Price to Book Value (P/BV) multiple by the end of the period.
- Book Value Per Share (BVPS) Growth
- A consistent and linear upward trajectory is observed in the book value per share, which increased from 3.37 in March 2022 to 11.73 by June 2026. This steady growth indicates a continuous accumulation of net assets and a strengthening of the company's equity base over the five-year span.
- Price to Book Value (P/BV) Dynamics
- The P/BV ratio exhibited three distinct phases. Between March 2022 and December 2022, the ratio remained relatively stable, fluctuating between 8.46 and 8.90. A growth phase followed, with the ratio climbing to a peak of 13.64 by September 2024. Following a temporary correction to 10.73 in March 2025, the ratio entered a period of rapid acceleration, reaching a terminal peak of 16.82 in June 2026.
- Market Valuation Premium
- The share price outperformed the growth of the book value significantly, rising from 28.51 to 197.31. This divergence indicates that the market is attributing an increasing premium to the company's intangible assets, growth prospects, or earnings potential. The sharp increase in the P/BV ratio during 2025 and 2026 suggests a strong rerating of the stock's value by investors.
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