Akamai Technologies Current Valuation vs. Net Income
| AKAM Stock | USD 95.89 1.31 1.39% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.79 | 0.5697 |
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For Akamai Technologies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Akamai Technologies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Akamai Technologies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Akamai Technologies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Akamai Technologies over time as well as its relative position and ranking within its peers.
Akamai |
Is Internet Services & Infrastructure space 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 (0.64) | Earnings Share 3.38 | Revenue Per Share 26.167 | Quarterly Revenue Growth 0.041 | Return On Assets 0.0419 |
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 if Akamai Technologies is a good investment 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.
Akamai Technologies Net Income vs. Current Valuation Fundamental Analysis
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. Akamai Technologies is rated below average in current valuation category among its peers. It is rated third in net income category among its peers making up about 0.03 of Net Income per Current Valuation. The ratio of Current Valuation to Net Income for Akamai Technologies is roughly 31.69 . At this time, Akamai Technologies' Net Income is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Akamai Technologies by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Akamai Current Valuation vs. Competition
Akamai Technologies is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is presently estimated at about 523.92 Billion. Akamai Technologies holds roughly 17.35 Billion in current valuation claiming about 3% of equities under Information Technology industry.
Akamai Net Income vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Akamai Technologies |
| = | 17.35 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Akamai Technologies |
| = | 547.63 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Akamai Net Income Comparison
Akamai Technologies is currently under evaluation in net income category among its peers.
Akamai Technologies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Akamai Technologies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Akamai Technologies will eventually generate negative long term returns. The profitability progress is the general direction of Akamai Technologies' change in net profit over the period of time. It can combine multiple indicators of Akamai Technologies, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -95.3 M | -90.6 M | |
| Operating Income | 707.3 M | 742.7 M | |
| Net Income | 547.6 M | 575 M | |
| Income Tax Expense | 106.4 M | 61.3 M | |
| Income Before Tax | 652.5 M | 685.2 M | |
| Total Other Income Expense Net | -54.8 M | -57.5 M | |
| Net Income Applicable To Common Shares | 602.2 M | 311.5 M | |
| Net Income From Continuing Ops | 515.2 M | 384.5 M | |
| Non Operating Income Net Other | 3.9 M | 3.7 M | |
| Interest Income | 45.2 M | 23.5 M | |
| Net Interest Income | 12.7 M | 13.4 M | |
| Change To Netincome | 183 M | 151.6 M | |
| Net Income Per Share | 3.59 | 3.77 | |
| Income Quality | 2.46 | 1.54 | |
| Net Income Per E B T | 0.84 | 1.05 |
Akamai Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Akamai Technologies. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Akamai Technologies position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Akamai Technologies' important profitability drivers and their relationship over time.
Use Akamai Technologies in pair-trading
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.Akamai Technologies Pair Trading
Akamai Technologies Pair Trading Analysis
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 instruments. 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.Use Investing Themes to Complement your Akamai Technologies position
In addition to having Akamai Technologies in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Trending Equities. To learn how to invest in Akamai Stock, please use our How to Invest in Akamai Technologies guide.You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
To fully project Akamai Technologies' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Akamai Technologies at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Akamai Technologies' income statement, its balance sheet, and the statement of cash flows.