Akamai Technologies, Inc.

LSE:0HBQ Stock Report

Market Cap: US$15.5b

Akamai Technologies Valuation

Is 0HBQ 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 0HBQ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0HBQ ($101.7) is trading below our estimate of fair value ($179.11)

Significantly Below Fair Value: 0HBQ is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0HBQ?

Other financial metrics that can be useful for relative valuation.

0HBQ 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/Revenue4.6x
Enterprise Value/EBITDA16.1x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does 0HBQ's PE Ratio compare to its peers?

The above table shows the PE ratio for 0HBQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average75.4x
IOM iomart Group
22.1x9.5%UK£145.9m
SGE Sage Group
54.9x17.6%UK£11.6b
SCT Softcat
27.4x9.3%UK£3.1b
BKS Beeks Financial Cloud Group
197.2x57.9%UK£116.3m
0HBQ Akamai Technologies
28.2x13.7%US$15.5b

Price-To-Earnings vs Peers: 0HBQ is good value based on its Price-To-Earnings Ratio (28.2x) compared to the peer average (75.4x).


Price to Earnings Ratio vs Industry

How does 0HBQ's PE Ratio compare vs other companies in the European IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 0HBQ is expensive based on its Price-To-Earnings Ratio (28.2x) compared to the European IT industry average (19.4x).


Price to Earnings Ratio vs Fair Ratio

What is 0HBQ'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.

0HBQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.2x
Fair PE Ratio43.7x

Price-To-Earnings vs Fair Ratio: 0HBQ is good value based on its Price-To-Earnings Ratio (28.2x) compared to the estimated Fair Price-To-Earnings Ratio (43.7x).


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 0HBQ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$101.70
US$127.19
+25.1%
13.7%US$150.00US$81.00n/a20
Apr ’25US$108.96
US$127.19
+16.7%
13.7%US$150.00US$81.00n/a20
Mar ’25US$110.68
US$126.44
+14.2%
13.5%US$150.00US$81.00n/a20
Feb ’25US$124.31
US$120.95
-2.7%
14.0%US$150.00US$78.00n/a20
Jan ’25US$118.03
US$118.50
+0.4%
13.6%US$150.00US$78.00n/a20
Dec ’24US$116.21
US$117.05
+0.7%
12.6%US$145.00US$78.00n/a19
Nov ’24US$103.99
US$111.32
+7.0%
13.5%US$145.00US$74.00n/a19
Oct ’24US$107.08
US$109.15
+1.9%
14.6%US$145.00US$74.00n/a20
Sep ’24US$105.45
US$104.46
-0.9%
12.2%US$125.00US$74.00n/a17
Aug ’24US$94.57
US$94.94
+0.4%
12.2%US$115.00US$67.00n/a17
Jul ’24US$90.62
US$94.29
+4.0%
12.2%US$115.00US$67.00n/a17
Jun ’24US$92.04
US$96.99
+5.4%
15.9%US$132.00US$67.00n/a19
May ’24US$81.87
US$95.46
+16.6%
16.4%US$132.00US$62.00US$101.7019
Apr ’24US$77.68
US$94.83
+22.1%
16.9%US$132.00US$62.00US$108.9619
Mar ’24US$72.80
US$94.83
+30.3%
16.9%US$132.00US$62.00US$110.6819
Feb ’24US$88.10
US$100.89
+14.5%
17.5%US$137.00US$73.00US$124.3117
Jan ’24US$83.71
US$102.54
+22.5%
16.2%US$137.00US$73.00US$118.0317
Dec ’23US$95.14
US$104.66
+10.0%
20.8%US$168.00US$73.00US$116.2117
Nov ’23US$87.52
US$110.13
+25.8%
21.7%US$168.00US$75.00US$103.9917
Oct ’23US$81.99
US$112.94
+37.7%
20.0%US$168.00US$85.00US$107.0816
Sep ’23US$89.50
US$112.94
+26.2%
20.0%US$168.00US$85.00US$105.4516
Aug ’23US$96.11
US$117.13
+21.9%
19.0%US$168.00US$85.00US$94.5716
Jul ’23US$91.56
US$122.07
+33.3%
17.9%US$168.00US$85.00US$90.6215
Jun ’23US$100.63
US$122.07
+21.3%
17.9%US$168.00US$85.00US$92.0415
May ’23US$113.00
US$131.56
+16.4%
16.2%US$186.00US$85.00US$81.8716

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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