Akamai Technologies Valuation
| AKAM Stock | USD 78.05 0.40 0.52% |
At this time, the firm appears to be undervalued. Akamai Technologies shows a prevailing Real Value of $98.61 per share. The current price of the firm is $78.05. Our model approximates the value of Akamai Technologies from analyzing the firm fundamentals such as profit margin of 0.13 %, and Return On Equity of 0.11 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Akamai Technologies' valuation include:
Price Book 2.3593 | Enterprise Value | Enterprise Value Ebitda 11.9177 | Price Sales 2.9183 | Forward PE 11.2486 |
Undervalued
Today
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.
The fair value of the Akamai stock is 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. | Historical | Market 78.05 | Real 98.61 | Target 113.74 | Hype 77.46 | Naive 67.62 |
The intrinsic value of Akamai Technologies' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Akamai Technologies' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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: 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.
Akamai Technologies Cash |
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Akamai Valuation Trend
Knowing Akamai Technologies' actual value is paramount for traders when making sound investment determinations. Using both Akamai Technologies' enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Akamai Technologies Total Value Analysis
Akamai Technologies is presently forecasted to have valuation of 14.68 B with market capitalization of 11.65 B, debt of 4.54 B, and cash on hands of 864.15 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Akamai Technologies fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
14.68 B | 11.65 B | 4.54 B | 864.15 M |
Akamai Technologies Investor Information
About 98.0% of the company shares are held by institutions such as insurance companies. The book value of Akamai Technologies was presently reported as 32.52. The company has Price/Earnings To Growth (PEG) ratio of 0.96. Akamai Technologies had not issued any dividends in recent years. Based on the key indicators related to Akamai Technologies' liquidity, profitability, solvency, and operating efficiency, Akamai Technologies is performing exceptionally good at the present time. It has a great chance to report excellent financial results in March.Akamai Technologies Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Akamai Technologies has an asset utilization ratio of 40.31 percent. This suggests that the Company is making $0.4 for each dollar of assets. An increasing asset utilization means that Akamai Technologies is more efficient with each dollar of assets it utilizes for everyday operations.Akamai Technologies Ownership Allocation
Akamai Technologies holds a total of 150 Million outstanding shares. The majority of Akamai Technologies outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Akamai Technologies to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Akamai Technologies. Please pay attention to any change in the institutional holdings of Akamai Technologies as this could imply that something significant has changed or is about to change at the company. Also note that nearly one hundred thirty-five thousand invesors are currently shorting Akamai Technologies expressing very little confidence in its future performance.Akamai Technologies Profitability Analysis
The company reported the previous year's revenue of 3.99 B. Net Income was 504.92 M with profit before overhead, payroll, taxes, and interest of 2.37 B.About Akamai Technologies Valuation
We use absolute and 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 their related drivers, we attempt to find the most accurate representation of Akamai Technologies's intrinsic value. 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, and relevant financial multiples and ratios and then compare them to those of Akamai Technologies's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2.4 B | 2.5 B | |
| Pretax Profit Margin | 0.15 | 0.15 | |
| Operating Profit Margin | 0.13 | 0.14 | |
| Net Profit Margin | 0.13 | 0.13 | |
| Gross Profit Margin | 0.59 | 0.78 |
Akamai Technologies Growth Indicators
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.
| Common Stock Shares Outstanding | 154.3 M | |
| Quarterly Earnings Growth Y O Y | -0.106 | |
| Forward Price Earnings | 11.2486 |
Akamai Technologies Current Valuation Indicators
Akamai Technologies' valuation analysis is 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.When determining whether Akamai Technologies is a strong investment it is important to analyze Akamai Technologies' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Akamai Technologies' future performance. For an informed investment choice regarding Akamai Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Akamai Technologies. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. To learn how to invest in Akamai Stock, please use our How to Invest in Akamai Technologies guide.You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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 (0.11) | Earnings Share 3.27 | Revenue Per Share | Quarterly Revenue Growth 0.025 | Return On Assets |
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.