ANET — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($129.30)
DCF	$193.14	+49.4%
Graham Number	$24.68	-80.9%
Reverse DCF	—	implied g: 21.3%
DDM	—	—
EV/EBITDA	$129.30	+0.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $3.39B

Near-term growth (yrs 1–5)(%)Rev: 28.9% / EPS: 19.1%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 12.24%

Computed WACC: 12.24%

Cost of equity (Re)12.24%(Rf 4.30% + β 1.44 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)99.99%

Debt weight (D/V)0.01%

Results

Intrinsic Value / share$120.22

Current Price$129.30

Upside / Downside-7.0%

Net Debt (used)-$10.72B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	20.9%	24.9%	28.9%	32.9%	36.9%
7.0%	$216.77	$252.30	$292.60	$338.14	$389.41
8.0%	$173.75	$201.70	$233.40	$269.19	$309.47
9.0%	$144.25	$167.02	$192.82	$221.94	$254.69
10.0%	$122.86	$141.87	$163.39	$187.68	$214.99
11.0%	$106.68	$122.85	$141.16	$161.80	$185.00

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $2.75

Book Value / share($)Yahoo: $9.85

Results

Graham Number$24.68

Current Price$129.30

Margin of Safety-80.9%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 12.24%

Terminal growth rate(%)

Computed WACC: 12.24%

Cost of equity (Re)12.24%(Rf 4.30% + β 1.44 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)99.99%

Debt weight (D/V)0.01%

Results

Current Price$129.30

Implied Near-term FCF Growth30.4%

Historical Revenue Growth28.9%

Historical Earnings Growth19.1%

Base FCF (TTM)$3.39B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$129.30

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $3.93B

Target EV/EBITDA multipleCurrent: 38.6×

Net Debt($B)Default: -$10.72B

Results

Implied Equity Value / share$129.30

Current Price$129.30

Upside / Downside+0.0%

Implied EV$151.75B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$16.72B	-$13.72B	-$10.72B	-$7.72B	-$4.72B
34.6x	$121.57	$119.18	$116.79	$114.41	$112.02
36.6x	$127.82	$125.43	$123.05	$120.66	$118.27
38.6x	$134.08	$131.69	$129.30	$126.91	$124.53
40.6x	$140.33	$137.94	$135.55	$133.17	$130.78
42.6x	$146.58	$144.19	$141.81	$139.42	$137.03

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