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Arista Networks Inc

ANETAbove valueExpectations · modest

Held by 4 superinvestors.

Price$202.25
Holders4
Total value$405.9M

SEC 10-K · fundamentals

Business quality

as of 2025-12-31

Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.

Revenue growth
+28.6%
Net margin
39.0%
ROE
28.4%
FCF margin
47.2%
Revenue $2.32B → $9.01B · 6y
What makes a business high quality

Valuation · value band

Above fair value

$147/ sh · growth-anchored intrinsic value
margin of safety
fair value
above fair value
$202
cheaperpricier

Zero-growth floor

$27

Central IV

$147

Optimistic top

$191

Arista Networks Inc (ANET): A conservative value band $27–$191 / sh (zero-growth floor to growth-capped optimistic top); central read about $147. Today’s price sits above that band (price $202 as of 2026-08-26).

The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.

Revenue growth 20% (lower of historical trend and fundamental cap, capped by moat) · moat 20 yr · discount 10.6% · Zero-growth downside $27

Price as of 2026-08-26 · yahoo · DGS10 4.7% @ 2026-08-26.

Method & numbers

Model cautions

  • Capex doubled within two years: maintenance is floored then capped at D&A (OE may look optimistic); Greenwald growth value is closed — growth credit stays in the owner-earnings DCF only.
  • Owner-earnings yield diverges sharply from the 10-year Treasury (over 300 bps).
  • Growth nearly matches the discount rate — the estimate is sensitive to assumptions.

A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.

Owner-earnings DCF $41.22 – $191.27 · Greenwald zero-growth $33.16 · zero-growth base $33.16 · reproduction $12.99

Moat Franchise (moat) · terminal value 34% of present value · owner-earnings yield 1% vs 10Y 4.7%.

Graham earnings-power value (normalized NOPAT)$26.51 – $32.00 / sh

Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.

Years: TTM 2026-06-30, 2024, 2023, 2022, 2021

v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 89% (> 50%); estimate is degraded. Capex doubled within two years (AI-hog rule): maintenance capex floored at the D&A sustaining proxy (the growth-capex spike is not treated as maintenance). Share-based compensation is left as a real expense (not added back).

Buffett owner-earnings value$27.13 – $33.16 / sh

Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9–11% rate band (read as a cost-of-equity proxy). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).

Years: TTM 2026-06-30, 2024, 2023, 2022, 2021

v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 89% (> 50%); estimate is degraded. Capex doubled within two years (AI-hog rule): maintenance capex floored at the D&A sustaining proxy (the growth-capex spike is not treated as maintenance). One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% band as a cost-of-equity proxy; no leverage premium applied (net cash or debt within the no-charge range).

Reproduction value = tangible net assets $14.12B + capitalized R&D $2.45B（FY 2026, 2024, 2023, 2022） = $12.99 / sh. Reproduction value = tangible net assets (equity − goodwill − intangibles) + capitalized R&D (5y straight-line), ÷ diluted shares.

Moat reading: Franchise test compares earnings power (EPV) against reproduction value on both AV_conservative (tangible + capitalized R&D) and AV_reproduction (conservative + acquired-reset proxy). Both must clear the franchise multiple for a moat signal; near it, a commodity; below it, value destruction. A directional reading, not a verdict.

Assumes a wide moat · competitive-advantage period ≈ 20 years (earnings intact, ROIC stable over history).

Growth value gated to zero — capex doubled within two years (AI-hog); growth credit stays in the owner-earnings DCF only.

Window TTM 2026-06-30, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 14% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.

Owner-earnings DCF: growth g₁ 20% · OE FY TTM 2026-06-30, 2024, 2023, 2022, 2021 · Discount band: 9.16%–12.00% (DGS10 +4.5% to a 12% strict end, as of 2026-08-26). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.

Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.

What the price is betting

Today's price pencils in about 23.8% a year in owner-earnings for the next few years. Revenue actually grew 31.8% a year.

Below what it has already done.

Roughly, the price needs its historical revenue growth to run about 9 more years to hold up.

How to read intrinsic value

SEC 13F · holders

Superinvestors Holding This Security

4 holders · $405.9M combined · this quarter +1 opened / -0 exited

This quarter1 opened3 trimmed
Holders 3 → 4 · last 7q

SEC 13F · notes

Written summary

Arista Networks Inc (ANET) is held by 4 of the superinvestors tracked on Compounder, with a combined $405.9M in reported 13F value. The largest position belongs to Fred Martin, where it makes up 5.1% of the portfolio.

Other notable holders by value include François Rochon (1.9% of its book), Ray Dalio (0.2% of its book) and Lee Ainslie (0.0% of its book).

Over the latest quarter, 1 of the tracked filers opened a new position in ANET, 0 added to existing ones, 3 trimmed, and 0 sold out entirely.

Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.

How to read a 13F

SEC 13F · co-ownership

Also held by these investors

Investors holding Arista Networks Inc (ANET) also commonly hold →

ANET's price is not below its conservative value band. See current strike-zone stocks

Also on

Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14

Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.

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