Akamai Technologies Inc.

AKAM

91.01 (0.64%) 0.58

13.67(B)

Information Technology

IT Services

Akamai Technologies Inc. provides cloud computing security and content delivery services in the United States and internationally. The company offers cloud solutions to keep infrastructure websites applications application programming interfaces and users safe from various cyberattacks and online threats while enhancing performance. It also provides web and mobile performance solutions to enable dynamic websites and applications; media delivery solutions including video streaming and video player services game and software delivery broadcast operations authoritative domain name system resolution and data and analytics; and cloud computing services such as compute storage networking database and container management services to build deploy and secure applications and workloads. In addition the company offers content delivery solutions; and an array of service and support to assist customers with integrating configuring optimizing and managing its offerings. It sells its solutions through various channel partners. Akamai Technologies Inc. was incorporated in 1998 and is headquartered in Cambridge Massachusetts.

Holdings:

Cost basis:

Akamai Technologies Inc. (AKAM) price target and intrinsic value estimate

AKAM's fair price estimate is $96.5

This valuation is based on a fair P/E of 15.2 and EPS estimates of $6.36

The median analyst price target for AKAM is $112.0.

Analyst price targets range from $76.0 to $140.0

Is AKAM overvalued or undervalued?

AKAM is currently trading at $91.01

AKAM is undervalued by 6% using the pevaluation method.

AKAM is undervalued by 19% compared to median analyst price targets.

Do you agree with this valuation?

Valuation

PEvaluation

Low $72.4

Median $96.5

High $120.7

Fair P/E

Margin of safety

Analyst valuation

Low $76.0

Median $112.0

High $140.0

Strong Buy4

Buy14

Hold6

Sell0

Strong Sell1

Discounted cash-flow

TTM FCFFCF est.Growth FCFTerminal FCF

Discount rate:

10%

Terminal rate:

Growth phase length:

Growth phase rate:

10%

Economic moat: None/narrow

Overview

Market data

Market cap:$13.67(B)

Enterprise value:$16.34(B)

Total Equity:$4.79(B)

Shares outstanding:150.23(M)

Div. yield:0.00%

P/S:3.48

P/E:26.23

P/FCF:12.38

P/B:2.86

EPS:$3.5

FCF per share:$7.3

Dividend per share:$0.0

Income (TTM)

Revenue$3.97(B)

Gross profit$2.37(B)

EBITDA$1.12(B)

Net income$526.18(M)

Gross margin59.7%

Net margin13.3%

Balance sheet

Total assets$10.19(B)

Total liabilities$5.40(B)

Cash & Short-term inv.$1.70(B)

Long-term debt$2.40(B)

Debt issued$0

Debt repaid$0

Cash flow (TTM)

FCF$1.11(B)

CapEx$-457.45(M)

Dividends paid$0

Stock issued$61.13(M)

Stock repurchased$-646.41(M)

Stock-based comp.$426.16(M)

Future Growth

Revenue

CAGR: 8.2%

FY+1$3.99(B)

FY+2$4.25(B)

FY+3$4.60(B)

FY+4$5.02(B)

FY+5$5.46(B)

Net Income

CAGR: 11.3%

FY+1$975.63(M)

FY+2$1.04(B)

FY+3$1.14(B)

FY+4$1.34(B)

FY+5$1.50(B)

EPS

CAGR: 11.5%

FY+1$6.34

FY+2$6.79

FY+3$7.46

FY+4$8.72

FY+5$9.79

FCF per share

CAGR: 7.1%

FY+1$10.41

FY+2$9.59

FY+3$11.95

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Historical Financials

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YearlyQuarterly

Income

RevenueNet IncomeCOGSGross ProfitTotal OpEx.R&DSG&AOperating IncomeInterest ExpenseInterest IncomePre-tax incomeIncome tax

Cash flow

FCFCFONet IncomeD&AStock-based Comp.CFFStock IssuedStock RepurchasedDebt IssuedDebt RepaidDividend PaidCFIAcquisitionsDivestituresCapital Expenditures

Balance sheet

Total AssetsTotal LiabilitiesCurrent assetsCash and EquivalentsShort-term investmentsInventoriesReceivablesNon-current assetsNet PP&EGoodwillCurrent liabilitiesAccounts payableNon-current liabilitiesLong-Term DebtTotal Equity

Shares outstanding

Shares (Basic)Shares (Diluted)

Per share data

EPS (Basic)EPS (Diluted)FCF/ShareDividend/ShareBook value/Share

Ratios

P/EP/FCFP/BP/SEV/EarningsEV/FCFDebt/EquityPayout ratio

Margins

Net Income MarginOperating MarginGross MarginEBITDA MarginFCF Margin

Returns

ROICROAROCEROE

Market Cap.