Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Arista Networks Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
| Item | Description | The company |
|---|---|---|
| EBITDA | To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. | Arista Networks Inc. EBITDA increased from 2022 to 2023 and from 2023 to 2024. |
Enterprise Value to EBITDA Ratio, Current
Arista Networks Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 109,043,988) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,327,072) |
| Valuation Ratio | |
| EV/EBITDA | 32.77 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Apple Inc. | 27.24 |
| Cisco Systems Inc. | 17.03 |
| Dell Technologies Inc. | 10.44 |
| Super Micro Computer Inc. | 19.67 |
| EV/EBITDA, Sector | |
| Technology Hardware & Equipment | 26.34 |
| EV/EBITDA, Industry | |
| Information Technology | 35.23 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Arista Networks Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 122,752,387) | 78,002,509) | 40,325,090) | 36,589,029) | 20,869,304) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,327,072) | 2,492,656) | 1,644,496) | 981,213) | 774,021) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 36.90 | 31.29 | 24.52 | 37.29 | 26.96 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Apple Inc. | 25.29 | 21.66 | 19.15 | 20.47 | 23.12 | |
| Cisco Systems Inc. | 13.28 | 12.16 | 10.52 | 15.05 | 9.69 | |
| Dell Technologies Inc. | 11.43 | 6.61 | 4.85 | 9.32 | 8.64 | |
| Super Micro Computer Inc. | 21.57 | 16.77 | 10.50 | 11.19 | 10.65 | |
| EV/EBITDA, Sector | ||||||
| Technology Hardware & Equipment | — | 20.01 | 17.26 | 19.17 | 19.89 | |
| EV/EBITDA, Industry | ||||||
| Information Technology | — | 23.49 | 18.19 | 20.35 | 19.58 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 122,752,387 ÷ 3,327,072 = 36.90
4 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| EV/EBITDA | Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. | Arista Networks Inc. EV/EBITDA ratio increased from 2022 to 2023 and from 2023 to 2024. |