Is Arista Networks, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Arista Networks, Inc. has moved from expensive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 40, a Price to Book Value of 12.07, and an EV to EBITDA of 35.58. In comparison, a peer like Arista Networks itself has a significantly higher P/E ratio of 54.30, indicating that the market may be pricing it more aggressively than Arista Networks.
With a remarkable ROCE of 159.60% and an ROE of 29.82%, Arista demonstrates strong profitability metrics. Recent stock performance shows that while Arista's 1-week return is down by 7.14%, it has outperformed the S&P 500 over the year with a return of 40.50% compared to the S&P's 14.08%. Overall, the current valuation metrics suggest that Arista Networks is fairly valued in the market.