Using the PEG framework with analyst consensus forward EPS growth of 25.0%, Arista Networks, Inc. has a fair value of $88.32 based on NTM EPS (FY2026) of $3.53. The current PEG ratio is 1.34.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 26.1% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $3.53 |
| Fair Value | $88.32 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.75 | — | — |
| FY2026E | $3.53 | +28.5% | 17 |
| FY2027E | $4.29 | +21.6% | 20 |
| FY2028E | $5.25 | +22.1% | 11 |
| FY2029E | $6.96 | +32.7% | 5 |
4Y Forward EPS CAGR: 26.1%
| Year | Net Income | EPS | YoY |
|---|
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| FY2021 | $840.9M | $0.66 | — |
| FY2022 | $1.4B | $1.07 | +62.1% |
| FY2023 | $2.1B | $1.65 | +54.2% |
| FY2024 | $2.9B | $2.23 | +35.2% |
| FY2025 | $3.5B | $2.75 | +23.3% |
4Y Historical EPS CAGR: 42.9%