Akamai Technologies, Inc.

WBAG:AKAM Stock Report

Market Cap: €13.6b

Akamai Technologies Valuation

Is AKAM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AKAM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AKAM (€91.95) is trading below our estimate of fair value (€173.62)

Significantly Below Fair Value: AKAM is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AKAM?

Key metric: As AKAM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AKAM. This is calculated by dividing AKAM's market cap by their current earnings.
What is AKAM's PE Ratio?
PE Ratio27.4x
EarningsUS$526.18m
Market CapUS$14.21b

Price to Earnings Ratio vs Peers

How does AKAM's PE Ratio compare to its peers?

The above table shows the PE ratio for AKAM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average85x
VRSN VeriSign
22.2x2.7%US$18.6b
WIX Wix.com
132.9x36.4%US$12.2b
GDDY GoDaddy
15.6x-14.4%US$28.5b
DCII DCI Indonesia
169.2xn/aRp100.4t
AKAM Akamai Technologies
27.4x16.3%€14.2b

Price-To-Earnings vs Peers: AKAM is good value based on its Price-To-Earnings Ratio (27.4x) compared to the peer average (85x).

Price to Earnings Ratio vs Industry

How does AKAM's PE Ratio compare vs other companies in the European IT Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
AKAM 27.4xIndustry Avg. 17.3xNo. of Companies24PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AKAM is expensive based on its Price-To-Earnings Ratio (27.4x) compared to the European IT industry average (17.6x).

Price to Earnings Ratio vs Fair Ratio

What is AKAM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AKAM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate AKAM's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AKAM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€91.95
€107.87
+17.3%
11.4%€133.49€72.47n/a23
Dec ’25€89.67
€106.65
+18.9%
11.8%€132.19€71.76n/a21
Nov ’25€93.08
€104.07
+11.8%
12.4%€126.27€68.54n/a21
Oct ’25€90.89
€104.07
+14.5%
12.4%€126.27€68.54n/a21
Sep ’25€91.01
€103.25
+13.5%
12.1%€125.09€67.91n/a22
Aug ’25€89.59
€104.25
+16.4%
12.4%€129.35€74.84n/a22
Jul ’25€83.17
€105.10
+26.4%
12.7%€129.04€74.66n/a20
Jun ’25€83.49
€105.10
+25.9%
12.7%€129.04€74.66n/a20
May ’25€94.30
€116.30
+23.3%
13.7%€137.16€74.07n/a20
Apr ’25€100.74
€116.30
+15.4%
13.7%€137.16€74.07n/a20
Mar ’25€101.70
€116.84
+14.9%
13.5%€138.62€74.85n/a20
Feb ’25€113.56
€111.94
-1.4%
14.0%€138.83€72.19n/a20
Jan ’25€107.16
€107.34
+0.2%
13.6%€135.87€70.65n/a20
Dec ’24€105.82
€109.77
+3.7%
12.6%€135.98€73.15€89.6719
Nov ’24€98.47
€105.34
+7.0%
13.5%€137.21€70.03€93.0819
Oct ’24€101.26
€103.34
+2.1%
14.6%€137.29€70.06€90.8920
Sep ’24€98.04
€95.66
-2.4%
12.2%€114.46€67.76€91.0117
Aug ’24€86.21
€86.33
+0.1%
12.2%€104.58€60.93€89.5917
Jul ’24€82.83
€86.06
+3.9%
12.2%€104.96€61.15€83.1717
Jun ’24€85.35
€88.83
+4.1%
15.9%€120.90€61.37€83.4919
May ’24€72.82
€86.63
+19.0%
16.4%€119.79€56.27€94.3019
Apr ’24€71.58
€88.94
+24.3%
16.9%€123.80€58.15€100.7419
Mar ’24€67.97
€88.94
+30.9%
16.9%€123.80€58.15€101.7019
Feb ’24€80.91
€92.85
+14.8%
17.5%€126.08€67.18€113.5617
Jan ’24€78.99
€97.56
+23.5%
16.2%€130.34€69.45€107.1617
Dec ’23€90.65
€104.54
+15.3%
20.8%€167.82€72.92€105.8217

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 12:34
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Akamai Technologies, Inc. is covered by 65 analysts. 24 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
William PowerBaird
Ishan MajumdarBaptista Research
Madeline BrooksBofA Global Research