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 has a higher P/E of 54.30, indicating that while Arista is fairly valued, its peers may be overvalued.
Arista Networks has shown strong performance with a year-to-date return of 29.47%, significantly outperforming the S&P 500's 13.30% during the same period. However, over the last three years, the company's return of 36.86% lags behind the S&P 500's 81.19%, suggesting some volatility in its longer-term performance. Overall, the current valuation metrics indicate that Arista Networks is fairly valued in the market.