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Akamai Technologies, Inc. — Intrinsic Value & Fair Price

AKAM
NASDAQTechnologySoftware - InfrastructureCIK 0001086222akamai.comAbout AKAM
Last close · Oct 16, 202687.81−4.51 (−4.89%)
Market cap$12.6B
Model value · DCF · Perpetuity growth · 5y
98.25
Akamai Technologies closed at $87.81 — undervalued by 11% vs model.
48.33the model's range287.84

DCF · Perpetuity growth · 5y leads for mature & stable — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
36.78 – 441.99
Wall St. target
150.00 41% below
Below model, 1y
11 of 20 days

Price and model value

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What the marks mean
Daily close

Research on AKAM

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How it is valued

Valued asMature & Stable
Low/slowing growth (~5% recent)Moderate margins (11% net margin)Highly cyclical earningsStrong FCF yield (8.0%)
What growth the price implies: the reverse DCF

Key figures

FY2025
P/E
28.6×
EV / EBITDA
11.8×
FCF yield
5.5%
Dividend yield, TTM
0.00%
Beta
0.62
Cost of capital (WACC)
7.10%
Full financials

Analyst actions

third-party, quoted
09-29Raymond James · target170.00
09-28D.A. Davidson · target150.00
09-25Piper Sandler · target158.00
09-01Piper Sandler · “Overweight” from “Neutral”upgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
2 more companies list AKAM as a comparable

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just AKAM. No account.

About Akamai Technologies

Akamai Technologies, Inc. (AKAM) is a leading global provider of cloud services, specializing in the secure delivery, optimization, and protection of online content and business applications across the internet. The company's primary focus involves offering sophisticated cloud-based solutions designed to shield digital infrastructure, websites, applications (including APIs), and end-users from a wide array of cyberattacks and online threats, all while simultaneously enhancing performance. Akamai further excels in accelerating web and mobile experiences, facilitating dynamic and highly responsive websites and applications. Its extensive media delivery offerings encompass seamless video streaming and player services, efficient game and software distribution, robust broadcast operations, authoritative Domain Name System (DNS) resolution, and comprehensive data analytics. Additionally, Akamai provides cutting-edge edge compute solutions, empowering developers to deploy and run their code directly at the network's edge for improved efficiency and reduced latency. The company also extends its expertise to telecommunications carriers, offering specialized services such as advanced cybersecurity protection, parental controls, resilient DNS infrastructure, and content delivery solutions. To ensure client success, Akamai offers a full suite of support services to assist with the seamless integration, configuration, optimization, and ongoing management of its diverse product portfolio. Akamai distributes its solutions through both its dedicated direct sales and service organizations and an extensive network of channel partners. Founded in 1998, Akamai Technologies, Inc. is headquartered in Cambridge, Massachusetts.

CEO
F. Thomson Leighton
Headquarters
Cambridge, MA
Employees
11,000
IPO
1999-10-29
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.