AKAM logo
Akamai Technologies Inc.
AKAM
85.44 (0.00%) 0.00
12.48(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.
My Holdings:
(?% ownership)
Shares:
Cost basis:

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

AKAM's fair price estimate is $86.4

This valuation is based on a fair P/E of 12.2 and EPS estimates of $7.08

The median analyst price target for AKAM is $102.5.

Analyst price targets range from $72.0 to $136.3

Is AKAM overvalued or undervalued?

AKAM is currently trading at $85.44

AKAM is undervalued by 1% using the pevaluation method.

AKAM is undervalued by 20% compared to median analyst price targets.

Access thousands of companies and create your own custom market model. Create FREE account!

Valuation

PEvaluation

1% undervalued
Low
$64.8
Median
$86.4
High
$107.9
$85.4
Fair P/E
Margin of safety

Analyst Valuation

20% undervalued
Low
$72
Median
$103
High
$136
$85
Strong Buy2
Buy12
Hold8
Sell0
Strong Sell1

Discounted Cash Flow Valuation

N/A
Negative FCF or FCF estimates
Discount rateNaN%
Growth rate10.0%
Terminal rate7.0%
Shares outstan...ROICRevenue growthDebt/FCFAssets/Liabili...
Economic moat: None/narrow
More valuation methods

Overview

Market cap:$12.48(B)
Enterprise value:$15.25(B)
Total Equity:$4.88(B)
Div. yield:0.00%
P/S:3.24
P/E:25.58
P/FCF:12.87
P/B:2.63
EPS:$3.3
FCF per share:$6.6
Dividend per share:$0.0
ROIC:5.9%
ROA:5.3%
ROE:11.5%

Income (TTM)

RevenueGrossNet
Revenue$3.99(B)
Gross profit$2.37(B)
EBITDA$1.12(B)
Net income$504.92(M)
Gross margin59.4%
Operating margin16.7%
Net margin12.7%
Shares outstanding:146.11(M)

Balance sheet

Cash & ST inv.Other ST assetsLong term assetsCurrent liabilitiesLong term debtOther LT liabilitiesEquity
Total assets$10.37(B)
Current assets$2.58(B)
Total liabilities$5.49(B)
Current liabilities$2.09(B)
Cash & Short-term inv.$1.60(B)
Long-term debt$2.40(B)
Total intangibles$3.88(B)
PP&E$3.00(B)

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)
Debt issued$0
Debt repaid$0

Per Share Data

x1
Price: $85.4
Revenue: $26.4 (3.2x | 30.9%) Gross profit: $16.2 (5.3x | 19.0%) Earnings: $3.34 (25.6x | 3.9%)
FCF: $6.64 (12.9x | 7.8%) Stock-based Comp.: $2.71 (31.5x | 3.2%) CapEx.: $3.58 (23.9x | 4.2%) Dividend: $0.00 (N/A | 0.0%)
Total Assets: $71.0 (1.2x | 83.1%) Total Liabilities: $37.6 (2.3x | 44.0%) Book Value: $32.5 (2.6x | 38.1%) Cash & ST inv.: $10.9 (7.8x | 12.8%) Debt: $16.4 (5.2x | 19.2%)
Earnings FY+1: $6.25 (13.7x | 7.3%) Earnings FY+2: $6.73 (12.7x | 7.9%) Earnings FY+3: $7.65 (11.2x | 9.0%) Earnings FY+4: $8.93 (9.6x | 10.5%) Earnings FY+5: $10.1 (8.4x | 11.8%)
FCF FY+1: $10.1 (8.5x | 11.8%) FCF FY+2: $10.6 (8.1x | 12.3%) FCF FY+3: $12.5 (6.8x | 14.7%)

Growth Estimates

Revenue

CAGR: 8.6%
FY+1FY+2FY+3FY+4FY+5
FY+1$4.11(B)
FY+2(+5.9%)$4.35(B)
FY+3(+8.5%)$4.72(B)
FY+4(+10.3%)$5.21(B)
FY+5(+9.7%)$5.72(B)

Net Income

CAGR: 13.1%
FY+1FY+2FY+3FY+4FY+5
FY+1$953.48(M)
FY+2(+6.2%)$1.01(B)
FY+3(+11.6%)$1.13(B)
FY+4(+22.0%)$1.38(B)
FY+5(+13.1%)$1.56(B)

EPS

CAGR: 12.8%
FY+1FY+2FY+3FY+4FY+5
FY+1$6.25
FY+2(+7.7%)$6.73
FY+3(+13.7%)$7.65
FY+4(+16.7%)$8.93
FY+5(+13.3%)$10.12

FCF per share

CAGR: 11.5%
FY+1FY+2FY+3
FY+1$10.07
FY+2(+4.8%)$10.55
FY+3(+18.8%)$12.53

Similar Companies

Historical Financials

Showing limited histrical data. Access 10+ years of financials now! Upgrade
YearlyQuarterly
Income
FY2004FY2005FY2006FY2007FY2008FY2009FY2010FY2011FY2012FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023
FY2004FY2005FY2006FY2007FY2008FY2009FY2010FY2011FY2012FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023TTM5Y avg5Y CAGR
Revenue2.89(B)3.20(B)3.46(B)3.62(B)3.81(B)3.97(B)3.40(B)7%
COGS987.62(M)1.13(B)1.27(B)1.38(B)1.51(B)1.60(B)1.26(B)11%
Gross Profit1.91(B)2.07(B)2.19(B)2.23(B)2.30(B)2.37(B)2.14(B)5%
Total OpEx.1.33(B)1.36(B)1.39(B)1.52(B)1.60(B)1.70(B)1.44(B)5%
  R&D261.37(M)269.31(M)335.37(M)391.43(M)406.05(M)459.83(M)332.71(M)12%
  SG&A947.54(M)966.70(M)918.98(M)984.11(M)1.06(B)1.09(B)974.90(M)3%
Operating Income577.99(M)701.67(M)807.20(M)711.04(M)703.42(M)661.79(M)700.26(M)5%
Interest Expense-49.36(M)-69.12(M)-72.33(M)-11.10(M)-17.71(M)-27.27(M)-43.92(M)-23%
Interest Income34.35(M)29.12(M)15.62(M)3.26(M)45.19(M)101.52(M)25.51(M)7%
Pre-tax income532.48(M)616.08(M)728.22(M)658.00(M)652.53(M)625.14(M)637.46(M)5%
Income tax-53.35(M)-45.92(M)-62.57(M)-126.70(M)-106.37(M)-98.97(M)-78.98(M)19%
Net Income478.04(M)557.05(M)651.64(M)523.67(M)547.63(M)526.18(M)551.61(M)3%
Cash flow
FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023
Stock-based Comp.FCFCFONet IncomeD&ACFFStock IssuedStock RepurchasedDebt IssuedDebt RepaidDividend PaidCFIAcquisitionsDivestituresCapital Expenditures
Balance sheet
FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023
Total AssetsTotal LiabilitiesCurrent assetsCash and EquivalentsShort-term investmentsInventoriesReceivablesNon-current assetsNet PP&EIntangible AssetsGoodwillCurrent liabilitiesAccounts payableNon-current liabilitiesLong-Term DebtTotal Equity
Per share data
FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023
EPS (Basic)FCF/ShareDividend/ShareEPS (Diluted)Book value/ShareCash & ST inv./ShareDebt/Share
Ratios
FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023
P/EP/SEV/EarningsP/FCFP/BEV/FCFDebt/EquityPayout ratio
Margins
FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023
Net Income MarginOperating MarginGross MarginEBITDA MarginFCF Margin
Returns
FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023
ROICROAROCEROE
Shares outstanding
FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023
Shares (Basic)Shares (Diluted)
Market Cap.
FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023
Market Cap.

Tools

Future P/E Valuation

Projection Years
Base Revenue
Revenue Growth Rate
Final Net Margin
Final P/E Ratio
Discount Rate
What is the Future P/E Value Calculator?

This valuation calculator determines the fair price of a stock by projecting revenue, applying a net margin, and using a target P/E multiple.

How to Use This P/E Intrinsic Value Calculator?

Enter the base revenue, growth rate, final net margin, discount rate and fair P/E ratio.

Which Companies is This Method Suited For?

This method is suited for growth companies with increasing revenues, for which you can estimate the future net margin and assign a fair final P/E.

Growth companiesMature companiesEarly-stage companies

Dividend Discount Model

Annual Dividend
First Stage Length (Years)
First Stage Growth Rate
Final Growth Rate
Discount Rate
What is the Dividend Discount Model (DDM)?

The DDM is a stock valuation approach that estimates the intrinsic value of a stock based on its expected future dividends, discounted to present value.

How to Use This DDM Calculator?

Enter the annual dividend, expected growth rate, and discount rate to compute the intrinsic value.

Which Companies is This Method Suited For?

The DDM is best suited for valuing mature, dividend-paying companies that have a consistent history of paying dividends and are expected to continue doing so with a stable growth rate.

Dividend-paying companiesMature companies

Discounted Cash Flow

Forecast years
Terminal Growth Rate
Discount Rate
Free cash flow estimates:
Y+1 est.
Y+2 est.
0.00%
Y+3 est.
0.00%
Y+4 est.
0.00%
Y+5 est.
0.00%
What is the Discounted Cash Flow (DCF) Model?

The DCF model is a fundamental valuation method used to estimate the intrinsic value of a company based on the present value of future free cash flows.

How to Use This DCF Calculator?

Enter the expected free cash flows, the terminal growth rate, and the discount rate.

Which Companies is This Method Suited For?

The DCF model is suitable for valuing mature or growth companies with reasonably predictable future cash flows. It can be challenging to apply to companies with uncertain cash flows.

Growth companiesMature companiesDividend-paying companiesCompanies with predictable FCF

Discounted Cash Flow (exit mult.)

Forecast years
Exit FCF Multiple
Discount Rate
Free cash flow estimates:
Y+1 est.
Y+2 est.
0.00%
Y+3 est.
0.00%
Y+4 est.
0.00%
Y+5 est.
0.00%
What is the Discounted Cash Flow (DCF) Model?

The DCF model is a fundamental valuation method used to estimate the intrinsic value of a company based on the present value of future free cash flows.

How to Use This DCF Calculator?

Enter the expected free cash flows, an exit FCF multiple, and the discount rate.

Which Companies is This Method Suited For?

The DCF model is suitable for valuing mature or growth companies with reasonably predictable future cash flows. It can be challenging to apply to companies with uncertain cash flows.

Growth companiesMature companiesCompanies with predictable FCF

Graham Formula

Earnings Per Share
Expected Growth Rate
Government Bond Rate
What is the Graham Number with Growth?

The Graham Number formula with growth is an enhancement of Benjamin Graham's original intrinsic valuation method. It uses the earnings per share (EPS) and expected growth rate to estimate the fair value of a stock.

How to Use This Graham Number Calculator?

Enter the earnings per share (EPS), expected growth rate, and the bond yield to compute the intrinsic value of a stock.

Which Companies is This Method Suited For?

The Graham Number Calculator is best suited for valuing companies with positive earnings and a predictable growth rate.

Growth companiesMature companiesCompanies with predictable earnings

Future Dividend Yield

Base Dividend
Current Price
Number of Years
Dividend Growth Rate
What is the Future Yield Calculator?

The Future Yield Calculator helps you estimate the future dividend yield of a stock based on its current dividend, price, and expected dividend growth rate.

How to Use This Calculator?

Enter the base dividend, current price, number of years, and dividend growth rate. Optionally, preload stock data to automatically fetch the dividend and price. The calculator will display the current yield and the projected future yield.

Dividend Income

Investment Amount
Dividend Yield
What is the Dividend Income Calculator?

The Dividend Income Calculator helps you estimate the yearly, quarterly, monthly, and daily income of your investments.

How to Use This Calculator?

Enter the dividend yield and the invested amount. Optionally, preload stock data to automatically fetch the dividend yield.

Required Investment

Dividend Yield
Desired Yearly Payout
Desired Quarterly Payout
Desired Monthly Payout
What is the Required Investment Calculator?

The Required Investment Calculator helps you determine the amount of money you need to invest in a stock to achieve a desired dividend.

How to Use This Calculator?

Enter the dividend yield and your desired dividend income. Optionally, preload stock data to automatically fetch the dividend yield.