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).
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Net Profit Margin since 2014
- Return on Equity (ROE) since 2014
- Debt to Equity since 2014
- Aggregate Accruals
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Historical Valuation Ratios (Summary)
Arista Networks Inc., historical price multiples (quarterly data)
Based on: 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 multiples exhibit a general upward trajectory over the analyzed period, characterized by significant expansion followed by periodic volatility. A consistent pattern is observed across all four primary valuation ratios, where a trough occurred in the first quarter of 2023, followed by a steady climb, a sharp correction in the first quarter of 2025, and a subsequent peak in the second quarter of 2025.
- Price to Earnings (P/E) and Price to Operating Profit (P/OP)
- The P/E ratio fluctuated from a starting point of 37.69 in March 2022 to a low of 27.44 in March 2023. Following this dip, a strong expansion phase led to a peak of 47.33 in September 2024. After a temporary decline to 35.85 in March 2025, the ratio reached its highest point of 53.64 in June 2025 before stabilizing at 49.77 by March 2026. The P/OP ratio closely mirrored this movement, descending from 35.28 to 24.01 in March 2023, peaking at 50.86 in June 2025, and concluding the period at 44.57. The tight correlation between P/E and P/OP suggests that valuation drivers remained consistent across both net income and operating performance.
- Price to Sales (P/S)
- The P/S ratio demonstrates the most significant relative expansion. Starting at 11.13 in March 2022, the multiple contracted to 8.57 by March 2023. From that point, it experienced a sustained increase, surpassing 19.00 by September 2024. Despite a sharp correction to 14.60 in March 2025, the ratio surged to a period high of 21.94 in June 2025, eventually settling at 19.07 by March 2026. This trend indicates a substantial increase in the market's willingness to pay a premium per dollar of revenue.
- Price to Book Value (P/BV)
- The P/BV ratio moved from 8.46 in March 2022 to a low of 7.81 in March 2023. A steady upward trend followed, reaching 13.64 in September 2024. Similar to other metrics, a correction occurred in March 2025, bringing the ratio down to 10.73, before it spiked to 16.00 in June 2025. The ratio ended the period at 13.73 in March 2026, representing a significant increase in the valuation premium over the company's accounting book value compared to 2022 levels.
The synchronized movement across all ratios indicates that the valuation changes were driven by broad market sentiment or systemic shifts in the company's perceived growth profile rather than isolated changes in a single financial metric. The recurring volatility in March 2023 and March 2025 suggests periodic valuation resets, yet the overall trend reflects a long-term expansion of multiples, suggesting increased investor confidence or higher growth expectations over the four-year span.
Price to Earnings (P/E)
Arista Networks Inc., historical P/E calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| 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. | |||||||||||||||||||||||
| Lumentum Holdings Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
EPS
= (Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Arista Networks Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals a period of significant valuation expansion characterized by consistent fundamental growth and substantial increases in market pricing. While earnings grew steadily, the market valuation multiple experienced notable volatility, reflecting shifting investor sentiment and growth expectations.
- Earnings Per Share (EPS) Performance
- A consistent and linear upward trajectory is observed in earnings per share, which rose from 0.76 in March 2022 to 2.95 by March 2026. This uninterrupted quarterly growth indicates strong and stable operational performance, with the company nearly quadrupling its EPS over the analyzed period.
- Share Price Dynamics
- The share price demonstrated an overall aggressive increase, moving from 28.51 to 147.06. The growth was not uniform; a period of acceleration is evident starting in June 2023, followed by a significant surge between March 2025 and June 2025, where the price jumped from 86.45 to 138.78. This volatility in pricing contrasts with the stability of the underlying earnings.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio exhibited three distinct phases. Initially, a contraction phase occurred from March 2022 to March 2023, with the ratio declining from 37.69 to a period low of 27.44. This was followed by an expansion phase reaching 47.33 by September 2024. After a temporary correction to 35.85 in March 2025, the ratio entered a high-valuation plateau, peaking at 53.64 in June 2025 and remaining elevated near 49.77 by the end of the period.
The divergence between the linear growth of EPS and the non-linear movement of the P/E ratio suggests that the valuation is driven heavily by market speculation and forward-looking growth premiums rather than current earnings alone. The sharp increase in the P/E ratio in 2025 indicates that the market began pricing in significantly higher future expectations, leading to a valuation multiple that is substantially higher than the levels seen in 2022 and 2023.
Price to Operating Profit (P/OP)
Arista Networks Inc., historical P/OP calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| 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. | |||||||||||||||||||||||
| Lumentum Holdings Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
Operating profit per share
= (Income from operationsQ1 2026
+ Income from operationsQ4 2025
+ Income from operationsQ3 2025
+ Income from operationsQ2 2025)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Arista Networks Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The financial data reveals a strong growth trajectory in both equity valuation and operational profitability between March 2022 and March 2026, characterized by a consistent increase in earnings and a more volatile expansion in market valuation.
- Share Price Trends
- A substantial upward trend in share price is observed, rising from 28.51 US$ in March 2022 to 147.06 US$ by March 2026. This progression was marked by a period of rapid acceleration beginning in June 2023, with a notable temporary correction occurring in March 2025 where the price dropped to 86.45 US$ before recovering and reaching new highs.
- Operating Profit Performance
- Operating profit per share demonstrates uninterrupted, linear growth across all reporting periods. Starting at 0.81 US$ in March 2022, the value increased every single quarter, reaching 3.30 US$ by March 2026. This steady climb indicates a consistent improvement in operational efficiency and a reliable growth in the core earning power of the business.
- Price to Operating Profit (P/OP) Dynamics
- The P/OP ratio exhibits significant fluctuations, reflecting shifts in market valuation relative to operational fundamentals. An initial period of ratio compression is observed from March 2022 (35.28) to a low of 24.01 in March 2023. Following this, a strong expansion phase occurred, with the ratio peaking at 50.86 in June 2025. This indicates that during the 2024-2025 period, the share price grew at a rate far exceeding the growth of operating profits. The ratio eventually moderated to 44.57 by March 2026.
The analysis indicates that while operational profitability grew at a stable and predictable rate, the market valuation was subject to greater volatility. The expansion of the P/OP ratio suggests that investor expectations for future growth likely decoupled from current operating profit performance during the peak valuation periods.
Price to Sales (P/S)
Arista Networks Inc., historical P/S calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| 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. | |||||||||||||||||||||||
| Lumentum Holdings Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
Based on: 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 Q1 2026 Calculation
Sales per share
= (RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Arista Networks Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
An analysis of the valuation metrics from March 2022 to March 2026 reveals a general expansion in the Price-to-Sales (P/S) multiple, characterized by distinct periods of compression and rapid growth. While operational performance, as measured by sales per share, remained consistently positive, the market valuation experienced significant volatility.
- Sales per Share Trends
- A consistent and linear upward trajectory is observed in sales per share, increasing from 2.56 US$ in March 2022 to 7.71 US$ by March 2026. This steady growth indicates a reliable and uninterrupted increase in the ability to generate revenue on a per-share basis throughout the analyzed period.
- Share Price Volatility
- The share price exhibited more aggressive and non-linear growth compared to revenue. After a period of relative stability in 2022, the price accelerated from 33.75 US$ in March 2023 to a peak of 147.06 US$ in March 2026. A notable correction occurred in March 2025, where the price dropped to 86.45 US$ before rebounding sharply to higher levels.
- Price-to-Sales (P/S) Ratio Dynamics
- The P/S ratio underwent three distinct phases. A compression phase occurred between March 2022 and March 2023, with the ratio declining from 11.13 to 8.57. This was followed by a strong expansion phase from June 2023 through September 2024, where the ratio reached 19.07. A final period of high volatility was observed between December 2024 and March 2026, featuring a sharp dip to 14.60 in March 2025 followed by a peak of 21.94 in June 2025, before eventually moderating to 19.07.
The divergence between the steady growth of sales per share and the volatile movement of the share price suggests that the expansion of the P/S ratio was driven primarily by market sentiment and shifting investor expectations rather than proportional revenue growth. The peak valuation observed in mid-2025 represents a significant premium compared to the valuation levels seen at the start of the analyzed period.
Price to Book Value (P/BV)
Arista Networks Inc., historical P/BV calculation (quarterly data)
| 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 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Stockholders’ equity (in thousands) | |||||||||||||||||||||||
| Book value per share (BVPS)2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/BV ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||
| Lumentum Holdings Inc. | |||||||||||||||||||||||
| Super Micro Computer Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2026 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Arista Networks Inc. Quarterly or Annual Report.
4 Q1 2026 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The valuation of the equity demonstrates a significant expansion over the period from March 2022 through March 2026. While both the market price and the book value per share increased, the market price experienced more aggressive growth, leading to an overall elevation in the Price to Book Value (P/BV) ratio.
- Share Price Trajectory
- The share price exhibited a strong upward trend, rising from 28.51 US$ in March 2022 to 147.06 US$ by March 2026. Notable acceleration occurred between December 2023 and June 2025, despite a temporary correction observed in March 2025 where the price declined to 86.45 US$ before recovering rapidly to reach new highs.
- Book Value per Share (BVPS) Progression
- The book value per share showed consistent and steady growth throughout the analyzed timeframe. Starting at 3.37 US$ in March 2022, the BVPS climbed incrementally each quarter to reach 10.71 US$ by March 2026. This linear progression indicates a stable and continuous accumulation of net assets.
- Price to Book Value (P/BV) Dynamics
- The P/BV ratio transitioned from a relatively stable range of 8.46 to 8.90 during 2022 to a more volatile and elevated range in subsequent years. A significant valuation expansion began in 2023, with the ratio reaching a peak of 16.00 in June 2025. This increase indicates that the market attributed a higher premium to the company's assets relative to their accounting value over time. Following the June 2025 peak, the ratio entered a gradual moderation phase, settling at 13.73 by March 2026.