Akamai Technologies, Inc.

NasdaqGS:AKAM Stock Report

Market Cap: US$16.6b

Akamai Technologies Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 ($108.76) is trading below our estimate of fair value ($174.23)

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?

Other financial metrics that can be useful for relative valuation.

AKAM 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/Revenue4.9x
Enterprise Value/EBITDA17.1x
PEG Ratio2.2x

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 Average60.2x
GDDY GoDaddy
12.3x-3.9%US$17.4b
VRSN VeriSign
23.4x3.8%US$19.1b
DOCN DigitalOcean Holdings
178.6x54.0%US$3.5b
CD Chindata Group Holdings
26.6x25.6%US$3.1b
AKAM Akamai Technologies
30.1x13.7%US$16.6b

Price-To-Earnings vs Peers: AKAM is good value based on its Price-To-Earnings Ratio (30.1x) compared to the peer average (60.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: AKAM is expensive based on its Price-To-Earnings Ratio (30.1x) compared to the US IT industry average (22.6x).


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 Ratio30.1x
Fair PE Ratio39.7x

Price-To-Earnings vs Fair Ratio: AKAM is good value based on its Price-To-Earnings Ratio (30.1x) compared to the estimated Fair Price-To-Earnings Ratio (39.7x).


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 AKAM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$108.76
US$127.19
+16.9%
13.7%US$150.00US$81.00n/a20
Mar ’25US$110.24
US$126.44
+14.7%
13.5%US$150.00US$81.00n/a20
Feb ’25US$124.04
US$120.95
-2.5%
14.0%US$150.00US$78.00n/a20
Jan ’25US$118.35
US$118.50
+0.1%
13.6%US$150.00US$78.00n/a20
Dec ’24US$116.03
US$117.05
+0.9%
12.6%US$145.00US$78.00n/a19
Nov ’24US$103.89
US$111.32
+7.1%
13.5%US$145.00US$74.00n/a19
Oct ’24US$106.54
US$109.15
+2.4%
14.6%US$145.00US$74.00n/a20
Sep ’24US$105.35
US$104.46
-0.8%
12.2%US$125.00US$74.00n/a17
Aug ’24US$94.02
US$94.94
+1.0%
12.2%US$115.00US$67.00n/a17
Jul ’24US$89.87
US$94.29
+4.9%
12.2%US$115.00US$67.00n/a17
Jun ’24US$91.45
US$96.99
+6.1%
15.9%US$132.00US$67.00n/a19
May ’24US$80.54
US$95.46
+18.5%
16.4%US$132.00US$62.00n/a19
Apr ’24US$78.30
US$94.83
+21.1%
16.9%US$132.00US$62.00n/a19
Mar ’24US$73.05
US$94.83
+29.8%
16.9%US$132.00US$62.00US$110.2419
Feb ’24US$89.58
US$100.89
+12.6%
17.5%US$137.00US$73.00US$124.0417
Jan ’24US$84.30
US$102.54
+21.6%
16.2%US$137.00US$73.00US$118.3517
Dec ’23US$95.20
US$104.66
+9.9%
20.8%US$168.00US$73.00US$116.0317
Nov ’23US$88.10
US$110.13
+25.0%
21.7%US$168.00US$75.00US$103.8917
Oct ’23US$80.32
US$112.94
+40.6%
20.0%US$168.00US$85.00US$106.5416
Sep ’23US$90.21
US$112.94
+25.2%
20.0%US$168.00US$85.00US$105.3516
Aug ’23US$95.33
US$117.13
+22.9%
19.0%US$168.00US$85.00US$94.0216
Jul ’23US$92.12
US$122.07
+32.5%
17.9%US$168.00US$85.00US$89.8715
Jun ’23US$101.13
US$122.07
+20.7%
17.9%US$168.00US$85.00US$91.4515
May ’23US$112.28
US$131.56
+17.2%
16.2%US$186.00US$85.00US$80.5416
Apr ’23US$120.51
US$131.25
+8.9%
16.3%US$186.00US$85.00US$78.3016
Mar ’23US$108.83
US$131.25
+20.6%
16.3%US$186.00US$85.00US$73.0516

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


Discover undervalued companies

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.