Arista Networks Inc PEG Ratio
Data as of August 04, 2026
PEG Ratio
2.62
PE Ratio (TTM)
62.59
EPS (TTM)
$2.92
Sector
Communications
How It's Calculated
2.62 = 62.59 ÷ Growth Rate
What This Means
Arista Networks Inc's PEG ratio of 2.62 is above 2, suggesting the stock may be overvalued relative to its growth rate. Investors are paying a premium for each unit of earnings growth.
About Arista Networks Inc
Arista Networks Inc (ANET) operates in the Communications sector, specifically in Communications. With a market capitalization of about $227.10B, it ranks as a mega-cap stock — one of the largest publicly traded companies.
Shares recently traded near $184.89, within a 52-week range of $114.52 to $189.82 (-2.6% from the high, +61.4% from the low). Beta of 1.62 suggests the stock has been more volatile than the broader market.
Trailing profit margin is about 38.3%, signaling a strong profit margin relative to many peers.
Understanding This Metric
The PEG ratio adjusts the PE multiple for expected earnings growth, helping compare fast-growing and slow-growing names on a more equal footing. For Arista Networks Inc, a PEG near 1 is often described as fairly valued relative to growth, though the growth estimate itself can change quickly with guidance revisions.
Sector Comparison
Among Communications names on our S&P 100 coverage, Arista Networks Inc's PEG ratio of 2.62 can be compared with peers such as CSCO (2.20). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Communications stocks.
Key Takeaways
- ANET is grouped in the Communications sector for peer comparisons.
- Recent beta of 1.62 suggests higher-than-market price sensitivity.
- Trailing profit margin of 38.3% provides context for how much earnings support the headline multiple.
Related Tools & Guides
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Frequently Asked Questions
What is ANET's PEG ratio?
PEG adjusts PE for expected earnings growth: PEG ≈ PE ÷ earnings growth rate. Arista Networks Inc's PEG of 2.62 is a shorthand for growth-at-a-reasonable-price comparisons.
Does PEG suggest growth at a reasonable price?
PEG above 1.5 (2.62) may mean the market prices in high growth — or that growth estimates lag reality.
What are limitations of PEG for ANET?
PEG depends on a single growth estimate, ignores balance sheet risk, and can mislead when earnings are volatile. Use it with PE, margins, and Communications peers — not as a standalone verdict.
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