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Is this Large Market Cap Stock target price reasonable for Arista Networks, Inc. (NYSE:ANET)?

The company in question is, Arista Networks, Inc. (NYSE:ANET) currently with a stock price of 80.29 (-0.58% today). The market cap for Arista Networks, Inc. is 5649.16, and is in the sector Technology, and Diversified Computer Systems industry. The target price for Arista Networks, Inc. is 81.83. Currently Arista Networks, Inc. is trading with a P/E of 40.18, and a forward P/E of 24.58. Average volume for Arista Networks, Inc. is 679.19 and so far today it is 188378.

Performance in the last year for Arista Networks, Inc. has been 24.38%. For EPS growth, Arista Networks, Inc. has seen a growth of 29.50%, and is looking to grow in the next year to 12.00%. More long term stats show that EPS growth has been 113.70% over the last five years and could be 22.08% for the next five years. Arista Networks, Inc. has seen sales growth quarter over quarter at 37.40%, with EPS growth quarter over quarter at 59.90%. The 20-day simple moving average is -0.61%, with the 200-day simple moving average coming to 14.98%.

Since the IPO date for Arista Networks, Inc. on the 06/06/2014, Arista Networks, Inc. has seen performance year to date to be 3.75%. With Arista Networks, Inc. trading at 80.29, the dividend yield is *TBA, and the EPS is 2.01.

So could Arista Networks, Inc., be undervalued? Well as said before P/E is 40.18. The PEG is 1.82, P/S is 5.8 and the P/B is at 6.01. The P/cash is 6.78, with P/free cash flow at 24.57.

Arista Networks, Inc. ability to deal with debt shows that the current ratio is 4.3, and the quick ratio is 3.9. This is with long term debt/equity at 0.04, and total debt/equity at 0.

In terms of margins, Arista Networks, Inc. has a gross margin of 64.10%, an operating margin of 18.80% and a profit margin of 14.90%.Payout ratio for Arista Networks, Inc. is 0.00%. Return on assets come to 12.10% with return on investment coming to 15.00%.

Insider ownership for Arista Networks, Inc., is at 10.20% and institutional ownership comes to 59.10%. Outstanding shares are at 69.95. While shares float is 42.15. The float short is currently 13.97%, and short ratio is 8.67.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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