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
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2014
- Return on Assets (ROA) since 2014
- Price to Operating Profit (P/OP) since 2014
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Historical Valuation Ratios (Summary)
Arista Networks Inc., historical price multiples (quarterly data)
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analysis of the provided financial ratios over multiple quarterly periods indicates several noteworthy trends and fluctuations. The data spans from early 2020 through to the first quarter of 2025, capturing the evolution of valuation metrics for the company.
- Price to Earnings (P/E) Ratio
- The P/E ratio became available starting in the first quarter of 2021, initially registering around the high 30s to just under 50 by the end of 2021. Throughout 2022, the ratio showed a general decreasing trend from approximately 37.69 to 32.05, then further descended to 27.44 by the first quarter of 2023. Thereafter, a recovery phase occurred through 2023 and into early 2024, with values climbing back towards the high 40s by the end of 2024, before declining slightly to 35.85 in the first quarter of 2025. This pattern suggests variations in market expectations for earnings growth or fluctuations in share price vis-à-vis earnings.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio mirrors much of the P/E ratio trajectory with initial measures beginning in early 2021 around the mid-30s, peaking near mid-40s by the end of 2021. A noticeable decline occurred during 2022, falling from about 35.28 down to 28.39 in early 2023. A subsequent increase throughout 2023 and 2024 pushed ratios back above 40, peaking at 45.29 by late 2024, followed by a decrease to 34.54 in early 2025. This pattern indicates similar trends as P/E, reflecting how operating profitability is being valued in the market over time.
- Price to Sales (P/S) Ratio
- The P/S ratio begins data from early 2021 with figures slightly above 10, maintaining a relatively stable range until late 2021 where a rising trend began reaching mid-teens by late 2024, peaking at 19.07. Afterward, a moderate decline was observed, dropping to 14.6 by the first quarter of 2025. This steady increase over multiple years suggests growing market valuation of the company’s revenue, possibly due to consistent sales growth or positive market sentiment. The recent decrease may reflect either a moderation in sales growth expectations or valuation adjustments.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio starts with lower levels close to 5.5 in early 2020 and gradually rises to over 10 by the end of 2020 and into early 2021. Continued growth was evident through the subsequent periods, reaching peaks above 13 by late 2024. The final quarter shows a decline to 10.73 by the first quarter of 2025. The sustained increase over years points to substantial market premium relative to book value, potentially reflecting expectations of strong asset utilization or intangible asset value not captured on the balance sheet. The recent pullback may indicate a revaluation in asset worth or market perceptions.
Overall, the financial ratios illustrate significant volatility and cyclical patterns in valuation metrics, with a general tendency for ratios to rise from 2020 through 2024, followed by a notable consolidation or correction in early 2025. These movements may be influenced by broader market conditions, company-specific performance variations, or shifts in investor sentiment regarding profitability, earnings, sales growth, and asset valuation.
Price to Earnings (P/E)
Arista Networks Inc., historical P/E calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 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. | ||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2025 Calculation
EPS
= (Net incomeQ1 2025
+ Net incomeQ4 2024
+ Net incomeQ3 2024
+ Net incomeQ2 2024)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Arista Networks Inc. Quarterly or Annual Report.
4 Q1 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The data indicates a generally positive trend in the share price of the company over the observed period. Beginning from US$13 in the first quarter of 2020, the price exhibits consistent growth, reaching a peak of US$103.92 by the second quarter of 2024 before experiencing a slight decline to US$86.45 by the first quarter of 2025. This denotes strong market performance with some volatility in the most recent quarters.
Earnings per share (EPS) data starts being available from the first quarter of 2021, with a value of US$0.52. EPS steadily increases throughout the quarters, reaching US$2.41 by the first quarter of 2025. This continuous growth in EPS reflects improving profitability and operational efficiency over time.
The price-to-earnings (P/E) ratio shows more fluctuation compared to share price and EPS. Initially recorded at 37.42 in early 2021, the ratio fluctuates within the range of approximately 27 to 48 across the quarters. Notably, the P/E ratio decreases from a higher level in late 2021 to a lower range in 2022 and 2023, indicating periods where earnings growth may have caught up with or outpaced the share price increase. However, it rises again in 2024, aligning with the peak in share price, before declining in the last reported quarter. This variability suggests shifts in market valuation and investor sentiment relative to earnings performance.
- Share Price Trends
- Steady increase from US$13 in Q1 2020 to a peak above US$100 in mid-2024, followed by a moderate decline toward early 2025.
- Earnings per Share (EPS)
- Consistent upward trend from US$0.52 in Q1 2021 to US$2.41 in Q1 2025, reflecting improving earnings capacity.
- Price-to-Earnings (P/E) Ratio
- Fluctuated between 27 and 48, with periods of both contraction and expansion, indicating varying market expectations relative to growth in earnings.
Overall, the company demonstrates robust financial performance with increasing profitability and positive market valuation trends, albeit with some short-term valuation adjustments as shown in the P/E ratio fluctuations and the recent share price dip.
Price to Operating Profit (P/OP)
Arista Networks Inc., historical P/OP calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| 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. | ||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2025 Calculation
Operating profit per share
= (Income from operationsQ1 2025
+ Income from operationsQ4 2024
+ Income from operationsQ3 2024
+ Income from operationsQ2 2024)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Arista Networks Inc. Quarterly or Annual Report.
4 Q1 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The analyzed financial data presents significant patterns observable across the reported periods, with notable trends in the share price, operating profit per share, and the price to operating profit (P/OP) ratio.
- Share Price
- The share price demonstrates an overall upward trend from March 31, 2020, through March 31, 2025. Starting at $13, the price gradually increases with some fluctuations, climbing to a peak of $103.92 by June 30, 2024. Post this peak, a decline is observed reaching $86.45 by March 31, 2025. This indicates strong market confidence over the medium term, albeit with some recent downward correction.
- Operating Profit per Share
- The operating profit per share emerges starting in March 31, 2021, and shows a consistent and steady growth throughout the periods. It rises from $0.57 to $2.50 by March 31, 2025, illustrating continuous operational improvements and earnings growth on a per-share basis. This upward trajectory conveys an improvement in operational efficiency and profitability.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio exhibits more volatility relative to the other metrics. After the initial data availability in March 31, 2021, it ranges from approximately 24.01 to 45.29, showing fluctuations that imply varying market valuations of the company's operating profit. The ratio shows a downward trend initially, reaching a low around 24.01, suggesting an enhanced valuation relative to operating profit, followed by a rise back to over 44, indicating increased price levels relative to operating earnings. Towards the end, the ratio declines again to 34.54, signifying a partial correction in valuation multiples.
In summary, the company demonstrates robust growth in operating profitability per share, supported by an appreciable increase in share price over the reported intervals. The P/OP ratio fluctuations suggest changing investor sentiment and valuation perspectives, with periods of both premium and more conservative valuation levels relative to operating profits. The data highlights a company experiencing continuous business expansion with an equity price that largely reflects this progress, notwithstanding some recent market adjustments.
Price to Sales (P/S)
Arista Networks Inc., historical P/S calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 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. | ||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2025 Calculation
Sales per share
= (RevenueQ1 2025
+ RevenueQ4 2024
+ RevenueQ3 2024
+ RevenueQ2 2024)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Arista Networks Inc. Quarterly or Annual Report.
4 Q1 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a generally upward trajectory over the observed period. Starting at $13 in March 2020, it experienced steady growth punctuated by occasional fluctuations. Notably, from early 2023, the price accelerated significantly, reaching a peak of $103.92 in March 2025 before a decline to $86.45 in the same quarter. Overall, this reflects strong market valuation growth with some recent volatility.
- Sales Per Share Trend
- Sales per share demonstrated continuous growth throughout the periods with no declines, increasing from $1.90 in March 2021 to $5.92 by March 2025. This steady rise indicates improving revenue generation relative to the number of shares, suggesting strong operational performance and expanding sales base consistently across quarters.
- Price-to-Sales (P/S) Ratio Trend
- The P/S ratio presented more variability but mostly trended upward after some initial declines. Starting at 10.24 in March 2021, it dipped below 10 around late 2022 but then increased sharply to a peak of 19.07 in March 2025. This rising valuation multiple implies heightened investor confidence and expectations relative to sales, although the recent decline to 14.6 by March 2025 could signal a partial revaluation or market correction.
- Summary of Interrelations
- The increase in share price aligns with growing sales per share and an increasing P/S ratio, indicating that the market has progressively valued the company higher both on an absolute price basis and relative to its revenue generation. The sustained sales growth underpins the share price appreciation and higher valuation multiples, reflecting favorable performance and investor sentiment overall. The recent volatility in price and valuation ratios suggests caution or adjustment in market perceptions.
Price to Book Value (P/BV)
Arista Networks Inc., historical P/BV calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||||||||||||||||||||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| 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. | ||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2025 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 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The data reveals distinct trends in the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the period analyzed.
- Share Price
- The share price shows a generally upward trend from $13.00 to a peak of $103.92 by June 30, 2024. There is notable acceleration in growth starting in mid-2022, with the price rising sharply from $31.93 in September 2022 to $103.92 in June 2024. However, following this peak, a decline is observed, dropping to $86.45 by March 31, 2025. This indicates substantial volatility in the latter periods after consistent growth in earlier quarters.
- Book Value Per Share (BVPS)
- BVPS shows steady growth throughout the entire timeframe, increasing from $2.35 to $8.06. The increase appears relatively consistent and gradual without major fluctuations, reflecting ongoing accumulation of equity or retained earnings. This steady improvement in book value per share contrasts with the more volatile share price.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio initially increases moderately, from 5.53 at the start to a peak of around 10.05 at the end of 2021, followed by a small decline and stabilization around 8.87 through late 2022. Thereafter, it rises significantly, reaching a maximum of 13.64 by September 30, 2024, which correlates with the peak share price. After this peak, the ratio drops again to 10.73 by March 31, 2025. This fluctuation highlights that the market valuation relative to book value became more aggressive during this period, suggesting heightened investor optimism or expectations, followed by a correction.
In summary, the share price exhibits strong growth and volatility, particularly from late 2022 onwards, while the book value per share demonstrates consistent and stable improvement. The P/BV ratio variations reflect changing market perceptions of the company’s value relative to its book equity, with a notable peak during mid-2024 followed by a correction. This combination of trends suggests growing investor confidence initially that became more speculative before tempering in the most recent quarter.