Akamai Stock Valuation

AKAM
 Stock
  

USD 92.12  0.79  0.86%   

What is the enterprise value of Akamai Technologies? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Akamai Technologies, is its stock price multiplied by the total number of shares outstanding, calculating Akamai Technologies' enterprise value requires a different approach. It uses Akamai Technologies' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The value of Free Cash Flow is estimated to pull down to about 713 M. The Enterprise Value is projected to pull down to about 17.7 B.
Akamai Technologies shows a prevailing Real Value of $102.28 per share. The current price of the firm is $92.12. At this time, the firm appears to be undervalued. Our model approximates the value of Akamai Technologies from analyzing the firm fundamentals such as profit margin of 18.83 %, and Return On Equity of 14.84 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Akamai Technologies Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Akamai Technologies's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Akamai Most Recent Valuation Data

Price Book
3.44
EPS Estimate Next Quarter
1.45
Address
145 Broadway, Cambridge, MA, United States, 02142
Price Sales
4.19
EBITDA
1.2 B
Beta
0.61
Fiscal Year End
December
Undervalued
Today 92.12
Please note that Akamai Technologies' price fluctuation is very steady at this time. Calculation of the real value of Akamai Technologies is based on 3 months time horizon. Increasing Akamai Technologies' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Akamai Technologies is useful when determining the fair value of the Akamai stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Akamai Technologies. Since Akamai Technologies is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Akamai Stock. However, Akamai Technologies' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
102.28
Real Value
104.47
Upside
Estimating the potential upside or downside of Akamai Technologies helps investors to forecast how Akamai stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Akamai Technologies more accurately as focusing exclusively on Akamai Technologies' fundamentals will not take into account other important factors:
Earnings
Estimates (8)
LowProjected EPSHigh
4.544.574.61
Details
Hype
Prediction
LowEstimated ValueHigh
89.3591.5493.73
Details
Naive
Forecast
LowNext ValueHigh
95.2597.4499.63
Details
14 Analysts
Consensus
LowTarget PriceHigh
120.00134.54183.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Akamai Technologies' intrinsic value based on its ongoing forecasts of Akamai Technologies' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Akamai Technologies' closest peers. When choosing an evaluation method for Akamai Technologies, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Akamai Technologies Investments

1.6 Billion

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Akamai Valuation Drivers Correlation

Many accounts on the financial statements of Akamai Technologies are highly interrelated and sometimes correlated. Consequently, when conducting Akamai's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Akamai
Click cells to compare fundamentals

Akamai Valuation Trend

Knowing Akamai Technologies' actual value is paramount for traders to make sound investment determinations. Akamai Technologies' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Akamai Technologies' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Akamai Technologies' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Akamai Market Cap

Akamai Technologies is number one stock in market capitalization category among related companies. Market capitalization of Software—Infrastructure industry is presently estimated at about 3.57 Trillion. Akamai Technologies adds roughly 14.97 Billion in market capitalization claiming only tiny portion of equities listed under Software—Infrastructure industry.
Capitalization  Workforce  Total debt  Revenue  Valuation

Akamai Technologies Valuation Ratios as Compared to Competition

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 price to earning category among related companies. It is number one stock in price to sales category among related companies fabricating about  0.17  of Price to Sales per Price to Earning. The ratio of Price to Earning to Price to Sales for Akamai Technologies is roughly  5.86 . The value of Price to Sales Ratio is estimated to pull down to 4.99. 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.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Akamai Technologies' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Akamai Technologies and how it compares across the competition.

About Akamai Technologies Valuation

The equity valuation mechanism determines the current worth of Akamai Technologies on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Akamai Technologies. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Akamai Technologies based exclusively on its fundamental and basic technical indicators. By analyzing Akamai Technologies's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Akamai Technologies's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Akamai Technologies. We calculate exposure to Akamai Technologies's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Akamai Technologies's related companies.
Last ReportedProjected for 2022
Gross Profit2.2 BB
Profit Margin 0.19  0.16 
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 8700 people.

Akamai Technologies Quarterly Enterprise Value

21.47 Billion

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Akamai Technologies Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Akamai Technologies does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio2.22
Earnings Quarterly Growth41.60%
Revenue Growth7.00%
Enterprise Value To Ebitda16.58
Earnings Growth42.40%
Enterprise Value To Revenue5.72

Akamai Technologies Current Valuation Indicators

Valuation refers to the process of determining the present value of Akamai Technologies and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Akamai we look at many different elements of the entity such as Akamai's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Akamai Technologies' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Akamai Technologies' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Akamai Technologies, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Akamai Technologies' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Akamai Technologies' worth.
Please continue to Trending Equities. 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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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
14.8 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.