Positioning no disclosures inside 60 days, left as found
Options put/call open interest 0.76, read 2026-10-28
Ethical does not pass the values gate
Price168.86 USD
Fair value191.89
Ethical score10.0/100
RatingAVOID
Our investment reviews on this name
2026-10-29Read Distribution186.72-9.6% to today ✓Markdown gives way to Distribution first Distribution read since July
2026-10-19Read Markdown185.58-9.0% to today ✓Accumulation gives way to Markdown
2026-09-03Read Accumulation183.75-8.1% to today Markup gives way to Accumulation after a 6% rise in 5 weeks
2026-07-28Read Markup173.99-2.9% to today Distribution gives way to Markup after a 13% rise in 4 weeks
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Arista Networks holds its Distribution at $168.86. The statistical read favours the sellers, held for 57 days.
As held on the ledger · 2026-10-30
Phase
Distribution · caution
Quantitative state
The statistical read favours the sellers, held for 57 days
Price at the screen
$168.86
Valuation
58.11 trailing · 35.28 forward price to earnings
Values screen
FAIL· score 10.0
Beta
1.61
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
36.39%
Below 33%
Interest-bearing debt is 36.4% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
45.14%
Below 33%
Interest-bearing cash and securities are 45.1% of assets, above the one-third limit.
Fail
Receivables
19.80%
Below 49%
Money owed to the company is 19.8% of assets, under the 49% limit.
Pass
Revenue purity
4.26%
Below 5%
Only 4.3% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Arista Networks's business is in a permissible area, but its interest-bearing debt is about 36% of the company, just over the ~33% line, so it does not pass on the financial screens.
Read as at 2026-10-31. It updates when the underlying figures move, and past reads are kept below.
Follow this verdict
Get an email when ANET's ethical verdict changes
Today ANET does not pass the screen. If new figures move it to a pass, we send you one short email with the before and after. Verdicts change rarely, so you may not hear from us for a long time.
Free, no account needed. Every email has a link to stop.
What the Numbers Say It Is Worth
The Fair Value Range
Our analysis reads AVOID: it trades at roughly a 14% discount to our $191.89 fair value, strong competitive moat, 37.70% revenue growth.
Fair value range in USD, drawn from the 2026-10-30 screen. The gold marker is the market price at the same screen. A 13.6% margin of safety to the base estimate.
Where our models see it going: fair-value estimate $191.89, with a range of $171.00 to $220.67, dated to the 2026-10-30 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Cloud Network Giant Flies Too Close to the Debt Sun
When you think of the cloud, the name Arista Networks might not immediately spring to mind. But behind every cloud service, whether it's AI or data centers, Arista Networks is there, ensuring the seamless flow of information. It's the backbone of a digital world, and it's growing revenue at a robust 38%, with a profit margin that matches its forward P/E at 38%. Why we're steering clear, though, is a matter of financial prudence. Despite its strong market position and a moat that would make any competitor envious, Arista Networks fails our ethical screen due to a debt ratio that's out of line with our standards.
The market has spoken with a strong buy consensus from 27 analysts, and their median target price is a lofty $248, which implies a significant upside from the current $183.75. However, our fair value sits slightly higher at $191.07, offering a slim margin of safety. But with a debt ratio that's a red flag, we can't justify the risk, even with the tantalizing potential returns.
Risk here is twofold: the lofty valuation suggested by the market, and the ethical failing on debt. While the business performs well on metrics like ROE at 31%, the ethical failing is a non-starter for us. This is not a call to sell if you already hold; it's a caution for those looking to buy. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The things to watch: it already moves more than the market on an average day.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
ANET trades on a US exchange. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-11-01Distribution$168.86-8.3%Entry 23
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 8.3% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 9% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 61%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (27 analysts) rates it strong buy, with a mean price target of $188. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-31Distribution$184.22+0.0%Entry 22
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 9% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 61%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (27 analysts) rates it strong buy, with a mean price target of $188. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-30Distribution$184.22-1.3%Entry 21
The analysis reads distribution. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved down 1.3% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 9% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 61%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (27 analysts) rates it strong buy, with a mean price target of $188. It reported earnings in this window, a natural checkpoint for the thesis.
The framework has shifted from markdown to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved up 0.6% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 9% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 61%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (27 analysts) rates it strong buy, with a mean price target of $188. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-28Markdown$185.58+0.0%Entry 19
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 9% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 61%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (27 analysts) rates it strong buy, with a mean price target of $188. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-27Markdown$185.58+0.0%Entry 18
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 9% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 61%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (27 analysts) rates it strong buy, with a mean price target of $188. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-26Markdown$185.58+0.0%Entry 17
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 9% above its long-term trend line with momentum reading oversold. Over the past year the shares are up 61%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (27 analysts) rates it strong buy, with a mean price target of $188.
2026-10-19Markdown · changed$185.58-14.4%Entry 16
The framework has shifted from accumulation to markdown since the last review. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 14.4% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 19% above its long-term trend line with momentum reading bearish. Over the past year the shares are up 61%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (27 analysts) rates it strong buy, with a mean price target of $188.
2026-10-12Accumulation$216.74+4.9%Entry 15
The analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved up 4.9% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 13% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 61%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (27 analysts) rates it strong buy, with a mean price target of $188.
2026-10-02Accumulation$206.55+12.4%Entry 14
Our analysis reads accumulation. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved up 12.4% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows excellent risk-adjusted returns. Our composite framework grades it C. Technically it is holding around 13% above its long-term trend line with momentum reading neutral. Over the past year the shares are up 61%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (27 analysts) rates it strong buy, with a mean price target of $188.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.