Arista Networks Stock Market Value
| ANET Stock | USD 112.81 3.74 3.43% |
| Symbol | Arista |
Arista Networks Price To Book Ratio
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Arista Networks. If investors know Arista will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Arista Networks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.355 | Earnings Share 2.09 | Revenue Per Share 21.114 | Quarterly Revenue Growth 0.2 | Return On Assets 0.1588 |
The market value of Arista Networks is measured differently than its book value, which is the value of Arista that is recorded on the company's balance sheet. Investors also form their own opinion of Arista Networks' value that differs from its market value or its book value, called intrinsic value, which is Arista Networks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Arista Networks' market value can be influenced by many factors that don't directly affect Arista Networks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Arista Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine if Arista Networks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arista Networks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Arista Networks 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Arista Networks' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Arista Networks.
| 08/22/2024 |
| 12/20/2024 |
If you would invest 0.00 in Arista Networks on August 22, 2024 and sell it all today you would earn a total of 0.00 from holding Arista Networks or generate 0.0% return on investment in Arista Networks over 120 days. Arista Networks is related to or competes with Passage Bio, Black Diamond, Alector, Century Therapeutics, Generation Bio, Stoke Therapeutics, and Ultragenyx. Arista Networks, Inc. develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, ... More
Arista Networks Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Arista Networks' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Arista Networks upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.37 | |||
| Information Ratio | 0.1203 | |||
| Maximum Drawdown | 11.96 | |||
| Value At Risk | (3.07) | |||
| Potential Upside | 4.44 |
Arista Networks Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Arista Networks' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Arista Networks' standard deviation. In reality, there are many statistical measures that can use Arista Networks historical prices to predict the future Arista Networks' volatility.| Risk Adjusted Performance | 0.1136 | |||
| Jensen Alpha | 0.2691 | |||
| Total Risk Alpha | 0.2326 | |||
| Sortino Ratio | 0.1168 | |||
| Treynor Ratio | 0.2234 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Arista Networks' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Arista Networks Backtested Returns
Arista Networks appears to be very steady, given 3 months investment horizon. Arista Networks secures Sharpe Ratio (or Efficiency) of 0.12, which signifies that the company had a 0.12% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Arista Networks, which you can use to evaluate the volatility of the firm. Please makes use of Arista Networks' Risk Adjusted Performance of 0.1136, downside deviation of 2.37, and Mean Deviation of 1.72 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Arista Networks holds a performance score of 9. The firm shows a Beta (market volatility) of 1.35, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Arista Networks will likely underperform. Please check Arista Networks' potential upside, and the relationship between the total risk alpha and kurtosis , to make a quick decision on whether Arista Networks' price patterns will revert.
Auto-correlation | 0.50 |
Modest predictability
Arista Networks has modest predictability. Overlapping area represents the amount of predictability between Arista Networks time series from 22nd of August 2024 to 21st of October 2024 and 21st of October 2024 to 20th of December 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Arista Networks price movement. The serial correlation of 0.5 indicates that about 50.0% of current Arista Networks price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.5 | |
| Spearman Rank Test | 0.69 | |
| Residual Average | 0.0 | |
| Price Variance | 26.73 |
Arista Networks lagged returns against current returns
Autocorrelation, which is Arista Networks stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Arista Networks' stock expected returns. We can calculate the autocorrelation of Arista Networks returns to help us make a trade decision. For example, suppose you find that Arista Networks has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Arista Networks regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Arista Networks stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Arista Networks stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Arista Networks stock over time.
Current vs Lagged Prices |
| Timeline |
Arista Networks Lagged Returns
When evaluating Arista Networks' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Arista Networks stock have on its future price. Arista Networks autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Arista Networks autocorrelation shows the relationship between Arista Networks stock current value and its past values and can show if there is a momentum factor associated with investing in Arista Networks.
Regressed Prices |
| Timeline |
Thematic Opportunities
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Additional Tools for Arista Stock Analysis
When running Arista Networks' price analysis, check to measure Arista Networks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Arista Networks is operating at the current time. Most of Arista Networks' value examination focuses on studying past and present price action to predict the probability of Arista Networks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arista Networks' price. Additionally, you may evaluate how the addition of Arista Networks to your portfolios can decrease your overall portfolio volatility.