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DCF Valuation
Base-case fair value
$164.14
Intrinsic $218.86 · 25% MOS
Current price: $169.63
Base-case summary
Our base-case DCF for Arista Networks, Inc. (ANET) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 40.9% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $5.3B in trailing free cash flow, this produces an intrinsic value of $218.86 per share. A 25% safety margin gives a fair value of $164.14, suggesting the stock is currently 3% overvalued against the $169.63 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$5.3B
Cash & equivalents
$12.4B
Total debt
$0
Shares outstanding
1.3B