Akamai Technologies Inc (AKAM) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Akamai Technologies Inc stock (AKAM) is currently trading at $119.15. Akamai Technologies Inc PE ratio is 35.87. Akamai Technologies Inc PS ratio (Price-to-Sales) is 3.80. Analyst consensus price target for AKAM is $109.46. WallStSmart rates AKAM as Underperform.
- AKAM PE ratio analysis and historical PE chart
- AKAM PS ratio (Price-to-Sales) history and trend
- AKAM intrinsic value — DCF, Graham Number, EPV models
- AKAM stock price prediction 2025 2026 2027 2028 2029 2030
- AKAM fair value vs current price
- AKAM insider transactions and insider buying
- Is AKAM undervalued or overvalued?
- Akamai Technologies Inc financial analysis — revenue, earnings, cash flow
- AKAM Piotroski F-Score and Altman Z-Score
- AKAM analyst price target and Smart Rating
Akamai Technologies Inc
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AKAM Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Akamai Technologies Inc (AKAM)
AKAM trades 353% above its Graham fair value of $20.94, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Akamai Technologies Inc (AKAM) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, institutional own.. Concerns around return on equity and eps growth. Fundamentals are solid but monitor weak areas for improvement.
Akamai Technologies Inc (AKAM) Key Strengths (3)
102.51% of shares held by major funds and institutions
Large-cap company with substantial market presence
Good growth relative to its price
Akamai Technologies Inc (AKAM) Areas to Watch (7)
Earnings declining -37.40%, profits shrinking
Low profitability relative to shareholder equity
Thin operating margins with cost pressures present
Premium pricing at 3.2x book value
Modest revenue growth at 7.40%
Revenue is fairly priced at 3.80x sales
Decent profitability, keeps $11 per $100 revenue
Supporting Valuation Data
Akamai Technologies Inc (AKAM) Detailed Analysis Report
Overall Assessment
This company scores 52/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 3 register as strengths (avg 9.0/10) while 7 fall into concern territory (avg 3.9/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Market Cap, PEG Ratio. Valuation metrics including PEG Ratio (1.27) suggest the stock is attractively priced.
The Bear Case
The primary concerns are EPS Growth, Return on Equity, Operating Margin. Some valuation metrics including Price/Sales (3.80), Price/Book (3.22) suggest expensive pricing. Growth concerns include Revenue Growth at 7.40%, EPS Growth at -37.40%, which may limit upside. Profitability pressure is visible in Return on Equity at 9.17%, Operating Margin at 13.80%, Profit Margin at 10.70%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 9.17% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 7.40% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Institutional Own., Market Cap) and negatives (EPS Growth, Return on Equity). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
AKAM Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
AKAM's Price-to-Sales ratio of 3.80x trades 41% below its historical average of 6.43x (28th percentile). The current valuation is 86% below its historical high of 27.18x set in Dec 2006, and 54% above its historical low of 2.47x in Jan 2009. Over the past 12 months, the PS ratio has expanded from ~3.4x, reflecting growing market expectations outpacing revenue growth.
Compare AKAM with Competitors
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Data-driven financial summary for Akamai Technologies Inc (AKAM) · TECHNOLOGY › SOFTWARE - INFRASTRUCTURE
The Big Picture
Akamai Technologies Inc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 4.2B with 7% growth year-over-year. Profit margins of 10.7% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 917.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 162M in free cash flow and 367M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can Akamai Technologies Inc push profit margins above 15% as the business scales?
Debt management: total debt of 5.7B is significantly higher than cash (930M). Monitor refinancing risk.
Sector dynamics: monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive moves, and regulatory changes that could impact Akamai Technologies Inc.
Bottom Line
Akamai Technologies Inc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Akamai Technologies Inc(AKAM)
NASDAQ
TECHNOLOGY
SOFTWARE - INFRASTRUCTURE
USA
Akamai Technologies, Inc. is a global content delivery network (CDN), cybersecurity, and cloud service company, providing web and Internet security services.