AlphaMadera's AlphaVal page classifies Arista Networks, Inc. as a Platform & Compounding FCF business and values it using Two-stage FCF DCF, then compares the result to the current market price to flag ANET as undervalued, fairly valued, or overvalued.

What is Arista Networks, Inc.'s fair value?

Fair value for ANET comes from a Two-stage FCF DCF model -- the approach AlphaVal selected for this company's Platform & Compounding FCF classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value ANET?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. ANET was classified as Platform & Compounding FCF and is valued using Two-stage FCF DCF, built from ANET's most recent reported fundamentals.

ANET - Arista Networks, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $226.64 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 85% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Strong

Trading 55.1% above fair value

Current Price $185.28

Bear Case $72.60 60.8% downside ($72.60 - $185.28) / $185.28 = -60.8% 11% stage 1 growth, 12% discount

Fair Value $119.44 35.5% downside ($119.44 - $185.28) / $185.28 = -35.5% 19% stage 1 growth, 12% discount

Bull Case $176.17 4.9% downside ($176.17 - $185.28) / $185.28 = -4.9% 24% stage 1 growth, 12% discount

Adjust Assumptions

DCF Stage 1 Growth Rate

18.7%

Discount Rate (WACC)

12.0%

Terminal Growth Rate

3.0%

Key Value Driver

FCF growth rate (19% base case)

Terminal Value % of EV 41%

Implied Market Multiple 56.8x

Market is pricing in (growth) 25.1% vs our 18.7% base

Plain-Language Summary

Using a two-stage FCF DCF with 19% growth decelerating over 15 years, discounted at 12%, the base-case intrinsic value is $119.44 per share.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (53 analysts) $226.64

Analyst Range $164.00 – $289.00

Divergence from AlphaVal 47%

Warnings

ℹ Wall Street's average price target is $226.64 (from 53 analysts). Our estimate is 47% below the consensus -- consider that gap carefully.

Key Risks

P/E alone misleads — earnings depressed by growth investment
Cyclical or commodity businesses may be misclassified as platforms
Terminal value dominance suggests sensitivity to long-run assumptions