Arista Networks: A High-Quality Company with Reasonable Growth but Overvalued
ByAinvest
Saturday, Jan 31, 2026 1:43 pm ET1min read
ANET--
Arista Networks has excellent capital allocation, double-digit growth, high margins, and a cash-rich balance sheet. The company's return on capital employed is 30%, and its revenue, net income, and free cash flow have grown at a CAGR of 26%, 38%, and 50%, respectively, over the last 10 years. Arista's gross, operating, and net margins are 64%, 43%, and 40%, respectively.
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