AKAM Stock Analysis
NMS · Technology · Software - Infrastructure
$112.97
-0.98 (-0.86%)
AKAM Interactive Price Chart & Trading Signals
AKAM Stock Snapshot — Valuation, Risk & Technical Signals
AKAM Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$16.23B
P/E Ratio
40.93
Forward P/E
16.56
PEG Ratio
1.38
P/B Ratio
3.42
EPS
$2.76
Dividend Yield
—
52W Range
$70.82 – $165.45
Beta
0.64
Volume
1.6M
ROE
8.9%
Profit Margin
9.5%
Revenue Growth
5.4%
Gross Margin
57.5%
EV/EBITDA
20.70
Analyst Target
$158.79
The trailing price-to-earnings ratio stands at 40.9x. Forward P/E of 16.6x implies earnings expansion expected. Price-to-book is 3.42x. EV/EBITDA sits at 20.70x. Market capitalization is $16.23B. Revenue is growing at 5.4% on a trailing basis. Earnings are compressing at -26.8%. Profit margins are 9.5%. Return on equity is 8.9%. Beta of 0.64 indicates defensive profile.
Analyst Consensus
Recommendation
Buy
Low Target
$93.00
Mean Target
$158.79
High Target
$225.00
Based on 23 analysts
About AKAM
Akamai Technologies, Inc. engages in the provision of security, delivery, and cloud computing solutions in the United States and internationally. It offers security solutions that include web application and application programming interfaces (API) protection solutions, which protect web, API, and mobile app traffic from attacks; Bot & Abuse portfolio, which provides solutions to help customers protect against threats; full account lifecycle protections including the ability to defend against account takeover and opening abuse, adversarial bot protection, protection against credential stuffing, inventory scalping, and hoarding; and solutions designed to stop persistent scrapers from stealing content; API security, which discovers, audits, and monitors API; and microservice and application component protection that analyzes and protects application traffic that moves between application components. The company also offers cloud computing services, which include compute, storage, and cloud native and networking services; and Akamai App Platform, provides ready-to-run templates that address challenges in deploying, managing and scaling Kubernetes clusters at scale. In addition, it offers delivery solutions that include web and mobile performance solutions, which enables dynamic websites and applications, as well as global traffic management, site acceleration, application load balancing, large-scale load testing, and real-user monitoring; and 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. The company has a strategic alliance with Deloitte Canada to help organizations achieve platform-based resilience against AI-accelerated cyberthreats. Akamai Technologies, Inc. was incorporated in 1998 and is headquartered in Cambridge, Massachusetts.
AKAM Deep Dive Analysis
Bottom Line
Verdict
OvervaluedBest for
General investorWatch out for
Premium valuation, Earnings declineNon-zero inputs
4/5Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.
Akamai Technologies, Inc. (AKAM) trades above our multi-model fair value estimate of $51.19 by approximately 54.7%. Trailing P/E: 40.9x. Profitability signals include profit margin of 9.5% and return on equity of 8.9%. Recent growth metrics show revenue growth of 5.4% and earnings growth of -26.8%. Risk profile: defensive beta of 0.64. Consensus: buy.
Valuation, Growth & Risk
Valuation
Overvalued
P/E 40.9x
Price is above what fundamentals suggest.
Growth
Expanding
Rev 5.4%
Revenue is outpacing the market.
Risk
Low
Beta 0.64
Movement is likely to track the broader market.
Valuation Snapshot
Akamai Technologies, Inc. (AKAM) trades above our multi-model fair value estimate of $51.19 by approximately 54.7%. The trailing price-to-earnings ratio stands at 40.9x. Forward P/E of 16.6x suggests earnings compression ahead. Price-to-sales is 3.8x. Price-to-book is 3.4x. EV/EBITDA sits at 20.7x. Market capitalization is $16.23B.
Why it matters: Paying a premium works only if the company keeps growing faster than expected.
Growth & Profitability
Revenue is growing at 5.4% on a trailing basis. Earnings are compressing at -26.8%. Profit margins are 9.5%. Return on equity is 8.9%. Return on assets is 2.5%.
Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.
Risk Profile
Beta of 0.64 indicates defensive profile. Net debt position is $5.98B.
Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.
Analyst Context
Analyst consensus target of $158.79 implies 40.6% upside. Target range spans $93.00 to $225.00. 23 analysts cover the stock. Consensus recommendation: buy.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, and market cap: Yahoo Finance (may be delayed)
- P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
- Analyst estimates: Yahoo Finance (coverage and update times vary)
- Insider transactions: Yahoo Finance (reporting may be delayed)
QuantSoar Model (Derived)
- Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
- Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
AKAM Overvalued
Akamai Technologies, Inc. (AKAM) trades above our multi-model fair value estimate of $51.19 by approximately 54.7%.
Frequently Asked Questions
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About the Author
Phasakorn Traklang (Peach) — Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.