Akamai Fundamentals

AKAM
 Stock
  

USD 94.83  1.16  1.21%   

Akamai Technologies fundamentals help investors to digest information that contributes to Akamai Technologies' financial success or failures. It also enables traders to predict the movement of Akamai Stock. The fundamental analysis module provides a way to measure Akamai Technologies' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Akamai Technologies stock.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
Akamai Technologies Direct Expenses is relatively stable at the moment as compared to the past year. The company's current value of Direct Expenses is estimated at 1.37 Billion. Income Tax Expense is expected to hike to about 74.1 M this year, although the value of Consolidated Income will most likely fall to nearly 547.3 M.

Akamai Price to Earnings To Growth Analysis

Akamai Technologies' PEG Ratio indicates the potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate. Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates the future growth of a firm. The low PEG ratio usually implies that an equity instrument is undervalued; whereas PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.
PEG Ratio 
 = 
PE Ratio 
EPS Growth 
More About Price to Earnings To Growth | All Equity Analysis

Current Akamai Technologies Price to Earnings To Growth

    
  1.62 X  
Most of Akamai Technologies' fundamental indicators, such as Price to Earnings To Growth, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Akamai Technologies is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Generally speaking, PEG ratio is a 'quick and dirty' way to measure how the current price of a firm's stock relates to its earnings and growth rate. The main benefit of using PEG ratio is that investors can compare the relative valuations of companies within different industries without analyzing their P/E ratios.
Compare to competition

Based on the latest financial disclosure, the price to earnings to growth indicator of Akamai Technologies is roughly 1.62 times. This is 4.14% lower than that of the Technology sector and significantly higher than that of the Software—Infrastructure industry. The price to earnings to growth for all United States stocks is 66.87% higher than that of the company.

Akamai Technologies Fundamental Drivers Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Akamai Technologies's current stock value. Our valuation model uses many indicators to compare Akamai Technologies value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Akamai Technologies competition to find correlations between indicators driving Akamai Technologies's intrinsic value. More Info.
Akamai Technologies is number one stock in cash per share category among related companies. It is number one stock in debt to equity category among related companies fabricating about  0.24  of Debt to Equity per Cash per Share. The ratio of Cash per Share to Debt to Equity for Akamai Technologies is roughly  4.19 . The value of Long Term Debt to Equity is estimated to pull down to 0.36. The value of Debt to Equity Ratio is estimated to pull down to 0.69. Comparative valuation analysis is a catch-all model that can be used if you cannot value Akamai Technologies by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Akamai Technologies' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Akamai Technologies' earnings, one of the primary drivers of an investment's value.

Akamai Cash Flow from Operations Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Akamai Technologies' direct or indirect competition against its Cash Flow from Operations to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Akamai Technologies could also be used in its relative valuation, which is a method of valuing Akamai Technologies by comparing valuation metrics of similar companies.
Akamai Technologies is currently under evaluation in cash flow from operations category among related companies.

Akamai Technologies Current Valuation Drivers

We derive many important indicators used in calculating different scores of Akamai Technologies from analyzing Akamai Technologies' financial statements. These drivers represent accounts that assess Akamai Technologies' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Akamai Technologies' important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee28.54 K39.68 K61.89 K66.39 K74.9 K75.21 K
Revenue Per Employee327.19 K361.01 K374.63 K381.14 K397.84 K438.5 K
Average Assets4.52 B5.28 B5.97 B7.36 B8 B6.9 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA705.34 M820.81 M1.02 B1.15 B1.34 B1.18 B
Earnings Before Interest Taxes and Depreciation Amortization USD705.34 M820.81 M1.02 B1.15 B1.34 B1.18 B
Earnings before Tax314.19 M343.09 M531.38 M602.98 M714.21 M636.79 M
Average Equity3.3 B3.29 B3.46 B3.98 B4.48 B4.17 B
Enterprise Value11.29 B10.79 B15.43 B19.06 B20.6 B17.74 B
Free Cash Flow386.2 M602.59 M496.23 M483.13 M859.33 M713.02 M
Invested Capital2.84 B3.12 B6.81 B7.52 B7.2 B5.91 B
Invested Capital Average2.84 B2.99 B4.87 B7.05 B7.36 B5.86 B
Market Capitalization11 B9.95 B13.96 B17.09 B19.02 B16.57 B
Tangible Asset Value2.95 B3.81 B5.23 B5.86 B5.67 B4.98 B
Working Capital889.55 M1.32 B1.54 B1.17 B1.13 B1.18 B

Akamai Technologies ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Akamai Technologies' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Akamai Technologies' managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Akamai Fundamentals

About Akamai Technologies Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Akamai Technologies's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Akamai Technologies using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Akamai Technologies based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2022
Deferred Revenue111.9 M94.7 M
Cost of Revenue1.3 B1.1 B
Revenues3.5 B3.2 B
Revenue to Assets 0.43  0.51 
Revenue Per Employee397.8 K438.5 K
Akamai Technologies, Inc. provides cloud services for securing, delivering, and optimizing content and business applications over the internet in the United States and internationally. Akamai Technologies, Inc. was incorporated in 1998 and is headquartered in Cambridge, Massachusetts. Akamai Technologies operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 9180 people.

Akamai Technologies Investors Sentiment

The influence of Akamai Technologies' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Akamai. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Akamai Technologies' public news can be used to forecast risks associated with investment in Akamai. The trend in average sentiment can be used to explain how an investor holding Akamai can time the market purely based on public headlines and social activities around Akamai Technologies. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Akamai Technologies' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Akamai Technologies' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Akamai Technologies' news discussions. The higher the estimate score, the more favorable is the investor's outlook on Akamai Technologies.

Akamai Technologies Implied Volatility

    
  111.64  
Akamai Technologies' implied volatility exposes the market's sentiment of Akamai Technologies stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Akamai Technologies' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Akamai Technologies stock will not fluctuate a lot when Akamai Technologies' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Akamai Technologies in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Akamai Technologies' short interest history, or implied volatility extrapolated from Akamai Technologies options trading.

Pair Trading with Akamai Technologies

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Akamai Technologies position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Akamai Technologies will appreciate offsetting losses from the drop in the long position's value.

Moving together with Akamai Technologies

0.76ADBEAdobe Systems Fiscal Year End 15th of December 2022 PairCorr
The ability to find closely correlated positions to Akamai Technologies could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Akamai Technologies when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Akamai Technologies - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Akamai Technologies to buy it.
The correlation of Akamai Technologies is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Akamai Technologies moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Akamai Technologies moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Akamai Technologies can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to Akamai Technologies Piotroski F Score and Akamai Technologies Altman Z Score analysis. Note that the Akamai Technologies information on this page should be used as a complementary analysis to other Akamai Technologies' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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When running Akamai Technologies price analysis, check to measure Akamai Technologies' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Akamai Technologies is operating at the current time. Most of Akamai Technologies' value examination focuses on studying past and present price action to predict the probability of Akamai Technologies' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Akamai Technologies' price. Additionally, you may evaluate how the addition of Akamai Technologies to your portfolios can decrease your overall portfolio volatility.
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Is Akamai Technologies' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Akamai Technologies. If investors know Akamai will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Akamai Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.22
Market Capitalization
15.5 B
Quarterly Revenue Growth YOY
0.072
Return On Assets
0.0628
Return On Equity
0.14
The market value of Akamai Technologies is measured differently than its book value, which is the value of Akamai that is recorded on the company's balance sheet. Investors also form their own opinion of Akamai Technologies' value that differs from its market value or its book value, called intrinsic value, which is Akamai Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Akamai Technologies' market value can be influenced by many factors that don't directly affect Akamai Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Akamai Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine Akamai Technologies value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Akamai Technologies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.