In today's video, we're talking about a company which I think has a massive potential. We're talking about Anet A-n-e-t that's the ticker it's called Arista Arista is dominating the high speed data center switch. Market They've taken Cisco's lunch forever and they continue to do so. They have a strong momentum now at 50 billion market cap their Behemoth They have clients all over the place Microsoft Amazon Meta All of them work for them.

Their revenue growth is absolutely insane. 2.3 billion, then 3 billion, then 4.3 billion. Last year they did 5 billion in sales, almost 5 billion sales. They're the market leader in the data center switch category and they're also at the Forefront of the A applications of data centers.

And with the increased spending that we're going to see on cloud computing and data centers and AI driven spending, that's going to happen in this field, this company is going to benefit now. Obviously, there's macro risks here. if the economy goes Kaboom and into the toilet, they'll suffer, but the rest of the market as well. But I'm just saying to you, look, there's big time here.

Total: Supermarket This company has terrific fundamentals very similar to Nvidia and it has similar exposures and similar opportunities. It's not exactly identical to Nvidia they're not competing with Nvidia. In fact, I would call this a completing product if Nvidia does well. and if this industry goes into the stratosphere, Arista is going to benefit.

But first of all, let me actually show you the numbers. Okay, so as you can see, we're right here on stock. MVP You can get it at stock. Dash Mvp.com Try it out! So stock MVP shows us that we have short interest of 2.6 that is not very high low short interest.

Now the PE is 31. It's not cheap, but compared to Nvidia, 31 is sounding really, really cute right now, especially with the numbers you're about to see. So it's not a cheap company, but it's definitely not parabolic. Now you can see that the stock also did quite well over the past 30 months.

It's uh, it's like down five percent. but if you go to a one month mode, you're gonna see it's up five percent one year mode 64 so depend how you spend this if I go back One year this thing was trading at 100. now a year later it's at 150. It had a big spike but nothing that comes close to Nvidia volunteer and the rest of these stocks.

It went absolutely ape wild because of this AI thing. Now look here's the thing. Look at the cars right here. Let me just show you the fundamentals here.

Now we already talked about the fact that have Ai exposure, data center exposure their market leader. They're working with the best clients and they will benefit from AI driven spending on data centers. And look at the revenue: 5 billion Revenue Look at the growth 50 growth in a year. they did 1.8 billion just five years ago.

They're currently at five. Look at the margin here. Operating income is 1.7 billion, net income is 1.5 billion. Look at the numbers up to 100 of five years.

the net income was just 500 million. Five years ago. Now they've tripled that in just five years. Now that's the one part.

I Also, like here, the debt is 55 million, the cash is 1 billion. So it's literally. Uh, you know it kind of reminds me of Palantir. Tesla You know High Cash Virtually no debt Operating margins 35 percent.

Look at the this is incredible. Total asset: 7.5 billion total abilities on this company is about 2.2 billion. So three, almost three and a half times access to liabilities. Excuse my math here and you know everything here checks out now.

31pe Again, 31b isn't cheap. But these fundamentals. with the opportunity it has and the similarity it has, it has very, very interesting path. I Think now if you go to a DCF valuation here and we actually run it through the model here, so the company is guiding towards a 30 ebitda growth.

For our model, we're going to Crunch in 25 I Think it might be a little bit. you know it's safe to be a little bit under the guidance. 10 10 for capex and depreciation? That's fine. Uh, discount rate I Think we can use 10 given the fact that interest rates are expected to come down in the next five years.

So 10 would be reasonable. And that's our valuation by the way, that's how fast it takes to do a DCF model in stock. MVP Literally takes a minute. that's why I Love the software! So Currently our DC evaluation is 209.

So as you can see, this company has all the right pieces in place. The fundamentals are off the charts, the margins are great, the guidance is great, the company is growing and it has the right exposure to Data Centers and AI to benefit from this. Spike and it's not competing with Nvidia. In fact, if Nvidia does well which I think well, first company will also do well and have clients is Microsoft Amazon We just talked about it.

Massive clients, 50 billion market cap. Now all we have to do with this company is DCA to it slowly I Don't say rush into it. my system isn't to buy it up and now just pull everything into it slowly. the Holocaust average over a couple of years.

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Thank you Aura See you next video.