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Akamai Technologies Inc.
AKAM
81.04 (-0.62%) 0.51
12.18(B)
Information Technology
IT Services
Akamai Technologies Inc. engages in the provision of security delivery and cloud computing solutions in the United States and internationally. The company offers security solutions that include web application and application programming interfaces (API) protection solutions which protect web API and mobile app traffic from attacks; Bot & Abuse portfolio which provides solutions to help customers protect against threats; Akamai Account Protector which offers full account lifecycle protections including the ability to defend against account takeover and opening abuse adversarial bot protection protection against credential stuffing inventory scalping and hoarding; Akamai Content Protector which provides solutions designed to stop persistent scrapers from stealing content; API security which discovers audits and monitors API; and microservice and application component protection that analyzes and protects application traffic that moves between application components. It also offers cloud computing services which include compute storage networking database and container management services; and Akamai App Platform provides ready-to-run templates that address challenges in deploying managing and scaling Kubernetes clusters at scale. In addition the company offers delivery solutions that include web and mobile performance solutions which enables dynamic websites and applications as well as global traffic management site acceleration application load balancing large-scale load testing and real-user monitoring; and media delivery solutions including video streaming and video player services game and software delivery broadcast operations authoritative domain name system resolution and data and analytics. Akamai Technologies Inc. was incorporated in 1998 and is headquartered in Cambridge Massachusetts.
Holdings:
Shares:
Cost basis:

Akamai Technologies Inc. (AKAM) price target and intrinsic value estimate

AKAM's fair price estimate is $95.7

This valuation is based on a fair P/E of 13.5 and EPS estimates of $7.08

The median analyst price target for AKAM is $105.0.

Analyst price targets range from $72.0 to $136.3

Is AKAM overvalued or undervalued?

AKAM is currently trading at $81.04

AKAM is undervalued by 15% using the pevaluation method.

AKAM is undervalued by 23% compared to median analyst price targets.

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Valuation

PEvaluation

Current price
$81.0
Fairly valued
Low
$71.7
Median
$95.7
High
$119.6
Fair P/E
Margin of safety

Analyst valuation

Current price
$81
Fairly valued
Low
$72
Median
$105
High
$136
Strong Buy3
Buy12
Hold8
Sell0
Strong Sell1

Discounted cash-flow

N/A
Negative FCF or FCF estimates
TTM FCFFCF est.Growth FCFTerminal FCF
Discount
rate
10%
Terminal
rate
5%
Growth p.
length
5y
Growth p.
rate
10%
Shares outstan...ROICRevenue growthDebt/FCFAssets/Liabili...
Economic moat: None/narrow
None/narrowMediumWideVery wide

Overview

Market data

Market cap:$12.18(B)
Enterprise value:$14.94(B)
Total Equity:$4.88(B)
Shares outstanding:150.32(M)
Div. yield:0.00%
P/S:3.07
P/E:24.26
P/FCF:12.20
P/B:2.49
EPS:$3.3
FCF per share:$6.6
Dividend per share:$0.0

Income (TTM)

RevenueGrossNet
Revenue$3.99(B)
Gross profit$2.37(B)
EBITDA$1.12(B)
Net income$504.92(M)
Gross margin59.4%
Net margin12.7%

Balance sheet

Cash & ST inv.Other ST assetsLong term assetsCurrent liabilitiesLong term debtOther LT liabilitiesEquity
Total assets$10.37(B)
Total liabilities$5.49(B)
Cash & Short-term inv.$1.60(B)
Long-term debt$2.40(B)
Debt issued$0
Debt repaid$0

Cash flow (TTM)

CFOCFICFF
FCF$995.90(M)
CapEx$-523.27(M)
Dividends paid$0
Stock issued$61.51(M)
Stock repurchased$-730.64(M)
Stock-based comp.$396.35(M)

Per Share Data

x1
Price: $81.0
Revenue: $26.4 (3.1x | 32.5%) Gross profit: $15.8 (5.1x | 19.5%) Earnings: $3.34 (24.3x | 4.1%)
FCF: $6.64 (12.2x | 8.2%) Stock-based Comp.: $2.64 (30.7x | 3.3%) CapEx.: $3.48 (23.3x | 4.3%) Dividend: $0.00 (N/A | 0.0%)
Total Assets: $69.0 (1.2x | 85.1%) Total Liabilities: $36.5 (2.2x | 45.1%) Book Value: $32.5 (2.5x | 40.1%) Cash & ST inv.: $10.6 (7.6x | 13.1%) Debt: $15.9 (5.1x | 19.7%)

Growth Estimates

Revenue

CAGR: 8.1%
FY+1FY+2FY+3FY+4FY+5
FY+1$4.12(B)
FY+2$4.38(B)
FY+3$4.75(B)
FY+4$5.17(B)
FY+5$5.63(B)

Net Income

CAGR: 13.0%
FY+1FY+2FY+3FY+4FY+5
FY+1$955.38(M)
FY+2$1.01(B)
FY+3$1.13(B)
FY+4$1.38(B)
FY+5$1.56(B)

EPS

CAGR: 12.8%
FY+1FY+2FY+3FY+4FY+5
FY+1$6.26
FY+2$6.78
FY+3$7.70
FY+4$8.93
FY+5$10.12

FCF per share

CAGR: 11.5%
FY+1FY+2FY+3
FY+1$10.07
FY+2$10.55
FY+3$12.53

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Historical Financials

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Income
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Per share data
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Returns
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Market Cap.

Calculators

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