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Arista Networks Inc – Custom Computer Programming Services
Arista Networks is an industry leader in software-driven cloud networking solutions for large data center and campus environments. Arista's award-winning platforms deliver availability, agility, automation analytics and security through CloudVision® and Arista EOS®, an advanced network operating system.
Analysis Results
Intrinsic Value $58.26
Latest Price $102.64
Relative Value 76% overvalued
Thoughts on this result? Let us know.
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 21.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 12.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 21.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.12 1.0
2023 1.36 1.08
2024 1.65 1.17
2025 2.0 1.26
2026 2.43 1.36
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 24.2 billion. This corresponds to a present value of 12.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.88 billion. Adding in the terminal value gives a total present value of 18.0 billion.

There are presently 308.0 million outstanding shares, so the intrinsic value per share is 58.26.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,812,676,000
Current Cash 3,408,315,000
Current Liabilities 1,109,829,000
Current Debt 0
Non-Cash Working Capital (NCWC) 294,532,000
Change in NCWC 98,645,000
EBIT 924,739,000
Tax Provision 90,025,000
Depreciation and Amortization 50,334,000
Capital Expenditure -64,736,000
Unlevered Free Cash Flow 919,550,797
Current Assets 3,836,998,000
Current Cash 2,872,868,000
Current Liabilities 768,243,000
Current Debt 0
Non-Cash Working Capital (NCWC) 195,887,000
Change in NCWC 45,693,000
EBIT 699,684,000
Tax Provision 104,306,000
Depreciation and Amortization 44,590,000
Capital Expenditure -15,384,000
Unlevered Free Cash Flow 675,807,937
Current Assets 3,471,636,000
Current Cash 2,724,368,000
Current Liabilities 597,074,000
Current Debt 0
Non-Cash Working Capital (NCWC) 150,194,000
Change in NCWC -1,957,000
EBIT 805,774,000
Tax Provision 2,403,000
Depreciation and Amortization 32,849,000
Capital Expenditure -15,751,000
Unlevered Free Cash Flow 818,669,444
Current Assets 2,714,802,000
Current Cash 1,956,147,000
Current Liabilities 606,504,000
Current Debt 0
Non-Cash Working Capital (NCWC) 152,151,000
Change in NCWC -48,818,000
EBIT 678,347,000
Tax Provision -39,314,000
Depreciation and Amortization 27,671,000
Capital Expenditure -23,830,000
Unlevered Free Cash Flow 633,370,000
Current Assets 2,266,429,000
Current Cash 1,535,555,000
Current Liabilities 529,905,000
Current Debt 0
Non-Cash Working Capital (NCWC) 200,969,000
Change in NCWC 2,229,000
EBIT 470,272,000
Tax Provision 51,559,000
Depreciation and Amortization 20,640,000
Capital Expenditure -15,279,000
Unlevered Free Cash Flow 426,790,397
Current Assets 1,526,126,000
Current Cash 867,833,000
Current Liabilities 459,553,000
Current Debt 0
Non-Cash Working Capital (NCWC) 198,740,000
Change in NCWC 145,413,000
EBIT 243,409,000
Tax Provision 58,036,000
Depreciation and Amortization 19,749,000
Capital Expenditure -21,419,000
Unlevered Free Cash Flow 328,832,319
Current Assets 974,328,000
Current Cash 687,326,000
Current Liabilities 235,011,000
Current Debt 1,336,000
Non-Cash Working Capital (NCWC) 53,327,000
Change in NCWC -33,409,000
EBIT 149,308,000
Tax Provision 24,907,000
Depreciation and Amortization 13,671,000
Capital Expenditure -19,989,000
Unlevered Free Cash Flow 84,111,238

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