Discounted Cash Flow (DCF) Analysis Levered
Arista Networks, Inc. (ANET)
$166.83
+0.49 (+0.28%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 2,151.37 | 2,410.71 | 2,317.51 | 2,948.04 | 4,381.31 | 5,301.53 | 6,415.03 | 7,762.41 | 9,392.78 | 11,365.58 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 503.12 | 963.03 | 735.11 | 1,015.86 | 492.81 | 1,492.50 | 1,805.97 | 2,185.29 | 2,644.27 | 3,199.66 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -23.83 | -15.75 | -15.38 | -64.74 | -44.64 | -59.80 | -72.36 | -87.56 | -105.95 | -128.20 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 479.29 | 947.28 | 719.73 | 951.12 | 448.17 | 1,432.70 | 1,733.61 | 2,097.73 | 2,538.33 | 3,071.46 |
Weighted Average Cost Of Capital
| Share price | $ 166.83 |
|---|---|
| Beta | 1.261 |
| Diluted Shares Outstanding | 316.46 |
| Cost of Debt | |
| Tax Rate | 14.50 |
| After-tax Cost of Debt | 4.28% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.557 |
| Total Debt | 43.96 |
| Total Equity | 52,794.85 |
| Total Capital | 52,838.82 |
| Debt Weighting | 0.08 |
| Equity Weighting | 99.92 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 2,151.37 | 2,410.71 | 2,317.51 | 2,948.04 | 4,381.31 | 5,301.53 | 6,415.03 | 7,762.41 | 9,392.78 | 11,365.58 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 503.12 | 963.03 | 735.11 | 1,015.86 | 492.81 | 1,492.50 | 1,805.97 | 2,185.29 | 2,644.27 | 3,199.66 |
| Capital Expenditure | -23.83 | -15.75 | -15.38 | -64.74 | -44.64 | -59.80 | -72.36 | -87.56 | -105.95 | -128.20 |
| Free Cash Flow | 479.29 | 947.28 | 719.73 | 951.12 | 448.17 | 1,432.70 | 1,733.61 | 2,097.73 | 2,538.33 | 3,071.46 |
| WACC | ||||||||||
| PV LFCF | 1,307.80 | 1,444.53 | 1,595.56 | 1,762.37 | 1,946.63 | |||||
| SUM PV LFCF | 8,056.90 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.55 |
| Free cash flow (t + 1) | 3,132.89 |
| Terminal Value | 41,495.25 |
| Present Value of Terminal Value | 26,298.83 |
Intrinsic Value
| Enterprise Value | 34,355.74 |
|---|---|
| Net Debt | -627.74 |
| Equity Value | 34,983.48 |
| Shares Outstanding | 316.46 |
| Equity Value Per Share | 110.55 |