PEG Ratio is a valuation metric for determining the relative trade-off between the price of a stock, the earnings per share (EPS), and the company’s trailing EPS growth rate. A lower ratio is considered ‘better’ (cheaper)
and a higher ratio is ‘worse’ (expensive).
PEG Ratio = (P/E Ratio) / Trailing EPS Growth Rate*
*Note, the growth rate is multiplied by 100 before this calculation.
Applying this formula, Arista Networks’s PEG Ratio is calculated below:
P/E Ratio [ 34.5 ]
(/) EPS Growth Rate * 100 [ 35.2 ]
(=) PEG Ratio [ 1.0 ]
The tables below summarizes the trend in Arista Networks’s PEG Ratio over the last five years:
| Date |
P/E Ratio |
EPS Growth Rate |
PEG Ratio |
| 2020-12-31 |
30.9 |
−5.8 |
−5.3 |
| 2021-12-31 |
56.3 |
10.6 |
5.3 |
| 2022-12-31 |
31.8 |
48.1 |
0.7 |
| 2023-12-31 |
38.5 |
64.3 |
0.6 |
| 2024-12-31 |
34.5 |
35.2 |
1.0 |
Click the link below to download a spreadsheet with an example PEG Ratio calculation for Arista Networks below: