Akamai Technologies Valuation

Q: What is the Fair Price of AK3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

AK3 (€103.5) is trading below our estimate of [[fair value]] (€180.24)

Is AK3 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 AK3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AK3 (€103.5) is trading below our estimate of fair value (€180.24)

Significantly Below Fair Value: AK3 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AK3?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for AK3. This is calculated by dividing AK3's market cap by their current preferred multiple.
What is AK3's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	US$16.34b

AK3 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.9x
Enterprise Value/EBITDA	17.5x
PEG Ratio	2.2x

Price to Earnings Ratio vs Peers

How does AK3's PE Ratio compare to its peers?

The above table shows the PE ratio for AK3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	31.3x
IOS IONOS Group	23x	17.7%	€3.5b
BC8 Bechtle	21.6x	8.8%	€5.8b
NEM Nemetschek	60.3x	16.1%	€10.1b
VRSN VeriSign	20.4x	3.9%	US$16.9b
AK3 Akamai Technologies	29.8x	13.7%	€16.3b

Price-To-Earnings vs Peers: AK3 is expensive based on its Price-To-Earnings Ratio (29.8x) compared to the peer average (29.7x).

Price to Earnings Ratio vs Industry

How does AK3's PE Ratio compare vs other companies in the DE IT Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	15.5%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	15.5%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: AK3 is expensive based on its Price-To-Earnings Ratio (29.8x) compared to the German IT industry average (22.8x).

Price to Earnings Ratio vs Fair Ratio

What is AK3'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.

AK3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	29.8x
Fair PE Ratio	34.7x

Price-To-Earnings vs Fair Ratio: AK3 is good value based on its Price-To-Earnings Ratio (29.8x) compared to the estimated Fair Price-To-Earnings Ratio (34.7x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.