Using the industry peer median P/E multiple (trailing + forward), Arista Networks, Inc. (ANET) has a fair value of $88.53 based on 8 comparable companies in the Computer Hardware industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Arista Networks, Inc.ANET | 158,289 | 45.1x | 43.0x |
| Applied Materials, Inc.AMAT | 270,054 | 39.3x | 36.3x |
| Lam Research CorporationLRCX | 266,600 | 51.4x | 53.2x |
| Amphenol CorporationAPH | 151,894 | 37.0x | 37.4x |
| Uber Technologies, Inc.UBER | 146,581 | 14.9x | 21.3x |
| QUALCOMM IncorporatedQCOM | 140,314 | 26.2x | 11.0x |
| AppLovin CorporationAPP | 132,592 | 40.2x | 25.1x |
| Intuit Inc.INTU | 120,829 | 31.8x | 18.7x |
| ServiceNow, Inc.NOW | 109,061 | 62.4x | 24.9x |
| Industry Median | 38.1x | 25.0x | |
| (*) Profit after tax | 3,511 | 3,678 | |
| Equity Value | 133,944 | 91,922 | |
| (/) Outstanding shares | 1,276 | 1,276 | |
| Fair Price | $105 | $72 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.