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Companies · ANET · Telecom. Equipment

What does Arista Networks' price assume?

$196.68, close of November 11, 2026 (Qualuation's records) · scan of November 12, 2026

The margin the price assumes

At neutral growth, no operating margin between −50% and 80% matches today's price.

The growth the price assumes

The operating margin moves to its own median; revenue growth is solved at today's price.

At $196.68 on November 11, 2026, with an operating margin moving to its 4-year median of 48.3% by year 5, the price assumes revenue growth of 29.7% a year for 5 years, slowing to the riskfree rate by year 10.

The price assumes

29.7%

Revenue growth a year, years 1 to 5, solved at the price

Its 10-year growth

26.8%

Revenue, a year on average, from its SEC filings

Its industry

3.3%

Telecom. Equipment, five years, Damodaran Online, January 2026

The price assumes revenue growth above the company's own record and above its industry's.

Revenue growth each fiscal yearRevenue growth each fiscal year from 2016 to 2025, its 10-year rate of 26.8%, and the 29.7% a year the price assumes for 2027 to 2031, years 1 to 5.ahead−10%0%10%20%30%40%50%20162019202220252031Fiscal 2016: 34.8%Fiscal 2017: 45.8%Fiscal 2018: 30.7%Fiscal 2019: 12.1%Fiscal 2020: −3.9%Fiscal 2021: 27.2%Fiscal 2022: 48.6%Fiscal 2023: 33.8%Fiscal 2024: 19.5%Fiscal 2025: 28.6%2027, year 1: the price assumes 29.7%2028, year 2: the price assumes 29.7%2029, year 3: the price assumes 29.7%2030, year 4: the price assumes 29.7%2031, year 5: the price assumes 29.7%10-year rate 26.8%29.7%the price assumesRevenue growth each fiscal yearRevenue growth each fiscal year from 2016 to 2025, its 10-year rate of 26.8%, and the 29.7% a year the price assumes for 2027 to 2031, years 1 to 5.ahead−10%0%10%20%30%40%50%201620252031Fiscal 2016: 34.8%Fiscal 2017: 45.8%Fiscal 2018: 30.7%Fiscal 2019: 12.1%Fiscal 2020: −3.9%Fiscal 2021: 27.2%Fiscal 2022: 48.6%Fiscal 2023: 33.8%Fiscal 2024: 19.5%Fiscal 2025: 28.6%2027, year 1: the price assumes 29.7%2028, year 2: the price assumes 29.7%2029, year 3: the price assumes 29.7%2030, year 4: the price assumes 29.7%2031, year 5: the price assumes 29.7%own rate 26.8%29.7%the price assumes
Revenue growth each fiscal year (SEC filings), its 10-year rate, and the growth the price assumes for years 1 to 5.
The numbers behind the chart
Fiscal yearRevenue growth
201634.8%
201745.8%
201830.7%
201912.1%
2020−3.9%
202127.2%
202248.6%
202333.8%
202419.5%
202528.6%
Operating margin
From today's margin to 48.3% by year 5Its own 4-year median, held. After that, the margin holds.SEC filings, fiscal 2022-2025, the median operating margin adjusted for R&D and leases
Revenue growth, years 1 to 5
29.7% a yearSolved at the price. From year 6, it slows each year to the riskfree rate by year 10.

The assumptions both views share

These are neutral settings, the same for every company. Each view holds them and solves for one driver at today's price.

Reinvestment
$2.57 of revenue for each $1 investedThe industry's sales-to-capital ratio: how much new capital growth needs.Damodaran Online, January 2026 industry data, Telecom. Equipment
Cost of capital
8.04%The return investors need for the risk: the industry's beta, the market's risk premium, and debt rated Aaa/AAA from its median margin, with a stated 5-year debt maturity. Built by the engine from the parts listed under Sources, each with its date.
After year 10
Growth at the riskfree rate, foreverNew investment earns its cost of capital and no more, so growth after year 10 adds no value, and the cost of capital moves to a mature company's.

Worth knowing

  • Its adjusted record has 4 complete years, not ten.
  • Revenue grew 31.2% a year over five years and grew 26.8% over ten: the record points two ways.
  • Revenue grew 31.2% a year over five years, faster than 20%: a steady-company starting point fits it less well.

This is a mechanical starting point with neutral assumptions, not a valuation. The story decides.

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Sources

  • Price: Qualuation's records, close of November 11, 2026.
  • 10-K for the period ended December 31, 2025, filed February 17, 2026 (SEC EDGAR, accession 0001596532-26-000013).
  • 10-Q for the period ended June 30, 2026, filed August 5, 2026 (SEC EDGAR, accession 0001596532-26-000175).
  • Margin record: SEC filings, fiscal 2022-2025, operating margin adjusted for R&D and leases.
  • Industry margin: Damodaran Online, January 2026 industry data, Telecom. Equipment, adjusted for R&D and leases.
  • Revenue growth record: SEC filings, revenue, fiscal 2015-2025, the average yearly growth.
  • Industry growth: Damodaran Online, January 2026 industry data, Telecom. Equipment, revenue growth over five years.
  • Sales to capital: Damodaran Online, January 2026 industry data, Telecom. Equipment.
  • US 10-year Treasury yield (FRED), October 29, 2026.
  • Less the US default spread (Damodaran Online, July 2026).
  • Industry beta, Telecom. Equipment (Damodaran Online, January 2026).
  • Equity risk premium (Damodaran Online, October 2026).
  • Debt rated Aaa/AAA at its median margin (rating table, Damodaran Online, January 2026).
  • The growth the price assumes: solved by the engine at the price on November 12, 2026, with the margin at its median and the assumptions above.