AKAM Relative Valuation
AKAM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AKAM is overvalued; if below, it's undervalued.
Historical Valuation
Akamai Technologies Inc (AKAM) is now in the Undervalued zone, suggesting that its current forward PE ratio of 12.20 is considered Undervalued compared with the five-year average of 16.32. The fair price of Akamai Technologies Inc (AKAM) is between 119.79 to 152.83 according to relative valuation methord. Compared to the current price of 86.60 USD , Akamai Technologies Inc is Undervalued By 27.71%.
Relative Value
Fair Zone
119.79-152.83
Current Price：86.60
27.71%
Undervalued
12.20
PE
1Y
3Y
5Y
Trailing
Forward
8.65
EV/EBITDA
Akamai Technologies Inc. (AKAM) has a current EV/EBITDA of 8.65. The 5-year average EV/EBITDA is 10.41. The thresholds are as follows: Strongly Undervalued below 7.77, Undervalued between 7.77 and 9.09, Fairly Valued between 11.74 and 9.09, Overvalued between 11.74 and 13.06, and Strongly Overvalued above 13.06. The current Forward EV/EBITDA of 8.65 falls within the Undervalued range.
12.84
EV/EBIT
Akamai Technologies Inc. (AKAM) has a current EV/EBIT of 12.84. The 5-year average EV/EBIT is 15.31. The thresholds are as follows: Strongly Undervalued below 11.42, Undervalued between 11.42 and 13.37, Fairly Valued between 17.25 and 13.37, Overvalued between 17.25 and 19.19, and Strongly Overvalued above 19.19. The current Forward EV/EBIT of 12.84 falls within the Undervalued range.
2.92
PS
Akamai Technologies Inc. (AKAM) has a current PS of 2.92. The 5-year average PS is 3.97. The thresholds are as follows: Strongly Undervalued below 2.30, Undervalued between 2.30 and 3.14, Fairly Valued between 4.81 and 3.14, Overvalued between 4.81 and 5.65, and Strongly Overvalued above 5.65. The current Forward PS of 2.92 falls within the Undervalued range.
7.61
P/OCF
Akamai Technologies Inc. (AKAM) has a current P/OCF of 7.61. The 5-year average P/OCF is 10.47. The thresholds are as follows: Strongly Undervalued below 6.31, Undervalued between 6.31 and 8.39, Fairly Valued between 12.54 and 8.39, Overvalued between 12.54 and 14.62, and Strongly Overvalued above 14.62. The current Forward P/OCF of 7.61 falls within the Undervalued range.
14.16
P/FCF
Akamai Technologies Inc. (AKAM) has a current P/FCF of 14.16. The 5-year average P/FCF is 18.25. The thresholds are as follows: Strongly Undervalued below 12.30, Undervalued between 12.30 and 15.28, Fairly Valued between 21.22 and 15.28, Overvalued between 21.22 and 24.19, and Strongly Overvalued above 24.19. The current Forward P/FCF of 14.16 falls within the Undervalued range.
Akamai Technologies Inc (AKAM) has a current Price-to-Book (P/B) ratio of 2.63. Compared to its 3-year average P/B ratio of 3.09 , the current P/B ratio is approximately -14.96% higher. Relative to its 5-year average P/B ratio of 3.41, the current P/B ratio is about -22.80% higher. Akamai Technologies Inc (AKAM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 6.84%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 6.33% , the current FCF yield is about -100.00% lower.
2.63
P/B
Median3y
3.09
Median5y
3.41
6.87
FCF Yield
Median3y
6.84
Median5y
6.33
Competitors Valuation Multiple
The average P/S ratio for AKAM's competitors is , providing a benchmark for relative valuation. Akamai Technologies Inc Corp (AKAM) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 4.97%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AKAM decreased by 9.46% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 5.76 to 13.29.
The secondary factor is the Revenue Growth, contributed 4.97%to the performance.
Overall, the performance of AKAM in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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