Stock Analysis on Net
Stock Analysis on Net

Arista Networks Inc. (NYSE:ANET)

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Arista Networks Inc., FCFE calculation

US$ in thousands

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income 2,087,321 1,352,446 840,854 634,557 859,867
Net noncash charges (37,391) 53,188 181,878 186,243 62,369
Changes in operating assets and liabilities (15,916) (912,821) (6,876) (85,686) 40,798
Net cash provided by operating activities 2,034,014 492,813 1,015,856 735,114 963,034
Purchases of property, equipment and intangible assets (34,434) (44,644) (64,736) (15,384) (15,751)
Free cash flow to equity (FCFE) 1,999,580 448,169 951,120 719,730 947,283

Based on: 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), 10-K (reporting date: 2019-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Arista Networks Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Arista Networks Inc. FCFE decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Price to FCFE Ratio, Current

Arista Networks Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 314,152,875
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 1,999,580
FCFE per share 6.36
Current share price (P) 423.12
Valuation Ratio
P/FCFE 66.48
Benchmarks
P/FCFE, Competitors1
Apple Inc. 32.75
Cisco Systems Inc. 7.82
Super Micro Computer Inc. 40.74
P/FCFE, Sector
Technology Hardware & Equipment 34.05
P/FCFE, Industry
Information Technology 51.91

Based on: 10-K (reporting date: 2023-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Arista Networks Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 312,633,612 306,395,384 307,766,578 305,326,292 305,916,908
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 1,999,580 448,169 951,120 719,730 947,283
FCFE per share3 6.40 1.46 3.09 2.36 3.10
Share price1, 4 265.51 141.46 129.94 77.74 55.87
Valuation Ratio
P/FCFE5 41.51 96.71 42.05 32.98 18.04
Benchmarks
P/FCFE, Competitors6
Apple Inc. 30.63 22.26 23.27 24.40 21.64
Cisco Systems Inc. 12.84 17.18 21.02 38.82 14.85
Super Micro Computer Inc. 41.38 139.27 13.81 — 7.83
P/FCFE, Sector
Technology Hardware & Equipment 27.96 22.10 23.19 25.31 20.14
P/FCFE, Industry
Information Technology 33.47 26.69 27.52 23.46 19.14

Based on: 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), 10-K (reporting date: 2019-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,999,580,000 ÷ 312,633,612 = 6.40

4 Closing price as at the filing date of Arista Networks Inc. Annual Report.

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 265.51 ÷ 6.40 = 41.51

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Arista Networks Inc. P/FCFE ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.