Akamai Technologies, Inc.

DB:AK3 Stock Report

Market Cap: €12.5b

Akamai Technologies Valuation

Is AK3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 (€82.57) is trading below our estimate of fair value (€175.42)

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?

Key metric: As AK3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for AK3. This is calculated by dividing AK3's market cap by their current earnings.
What is AK3's PE Ratio?
PE Ratio24.5x
EarningsUS$526.18m
Market CapUS$13.13b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.1x
IOS IONOS Group
21.2x18.9%€3.1b
NEM Nemetschek
66.9x18.6%€11.4b
BC8 Bechtle
16.6x9.9%€4.1b
NA9 Nagarro
23.6x17.1%€1.3b
AK3 Akamai Technologies
24.5x16.5%€13.1b

Price-To-Earnings vs Peers: AK3 is good value based on its Price-To-Earnings Ratio (24.5x) compared to the peer average (32.1x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
AK3 24.5xIndustry Avg. 17.9xNo. of Companies3PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AK3 is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the European IT industry average (18.3x).

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 Ratio24.5x
Fair PE Ratio32.6x

Price-To-Earnings vs Fair Ratio: AK3 is good value based on its Price-To-Earnings Ratio (24.5x) compared to the estimated Fair Price-To-Earnings Ratio (32.6x).

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 AK3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€82.57
€107.49
+30.2%
11.8%€132.99€72.19n/a21
Nov ’25€92.67
€104.07
+12.3%
12.4%€126.27€68.54n/a21
Oct ’25€90.23
€104.07
+15.3%
12.4%€126.27€68.54n/a21
Sep ’25€91.44
€103.25
+12.9%
12.1%€125.09€67.91n/a22
Aug ’25€89.77
€104.25
+16.1%
12.4%€129.35€74.84n/a22
Jul ’25€83.48
€105.10
+25.9%
12.7%€129.04€74.66n/a20
Jun ’25€83.00
€105.10
+26.6%
12.7%€129.04€74.66n/a20
May ’25€94.68
€116.30
+22.8%
13.7%€137.16€74.07n/a20
Apr ’25€101.04
€116.30
+15.1%
13.7%€137.16€74.07n/a20
Mar ’25€102.38
€116.84
+14.1%
13.5%€138.62€74.85n/a20
Feb ’25€113.90
€111.94
-1.7%
14.0%€138.83€72.19n/a20
Jan ’25€107.20
€107.34
+0.1%
13.6%€135.87€70.65n/a20
Dec ’24€105.54
€109.77
+4.0%
12.6%€135.98€73.15n/a19
Nov ’24€97.53
€105.34
+8.0%
13.5%€137.21€70.03€92.6719
Oct ’24€100.96
€103.34
+2.4%
14.6%€137.29€70.06€90.2320
Sep ’24€96.67
€95.66
-1.0%
12.2%€114.46€67.76€91.4417
Aug ’24€86.03
€86.33
+0.4%
12.2%€104.58€60.93€89.7717
Jul ’24€81.70
€86.06
+5.3%
12.2%€104.96€61.15€83.4817
Jun ’24€85.90
€88.83
+3.4%
15.9%€120.90€61.37€83.0019
May ’24€73.79
€86.63
+17.4%
16.4%€119.79€56.27€94.6819
Apr ’24€70.00
€88.94
+27.1%
16.9%€123.80€58.15€101.0419
Mar ’24€68.25
€88.94
+30.3%
16.9%€123.80€58.15€102.3819
Feb ’24€81.26
€92.85
+14.3%
17.5%€126.08€67.18€113.9017
Jan ’24€78.99
€97.56
+23.5%
16.2%€130.34€69.45€107.2017
Dec ’23€90.31
€104.54
+15.8%
20.8%€167.82€72.92€105.5417
Nov ’23€89.26
€111.66
+25.1%
21.7%€170.34€76.04€97.5317

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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