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Akamai Technologies Inc (AKAM) Fair Value & Analysis

Technology · US · Market cap $17.5B · ISIN US00971T1016

What is Akamai Technologies Inc really worth?

AT Akamai Technologies Inc logo Akamai Technologies Inc AKAM · US
Price$106.50
Fair Value$62.59
Upside−41.2%
Quality57/100

A solid business, but trading 70% above our fair value of $62.59.

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Strengths

Solidly profitable · 10.2% net margin
Moderate debt · generates free cash flow

Risks

!Expensive Growth (revenue 5y +5.6 %/yr)
!Trails peers (5/14)
!Moderate moat 48/100
!Evidence only medium, so the estimate is less certain
!Weak on future: 29 out of 100
Evidence: Medium Range $39.64 – $88.51

Fair value as of: Aug 21, 2026

From 24 valuation models · updated 15 days ago

Share price −13.7% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case ($88.51). The favourable scenario is already priced in.
  • Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($39.64 to $88.51) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$161.14 $68.21 Fair Value $62.59 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

60‑month range $68.21 – $161.14 · fair‑value band $39.64 – $88.51 · the $106.50 price screens above the $62.59 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 21, 2026.

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Analysis

Akamai Technologies Inc (AKAM) currently trades at $106.50, while our model-based Fair Value estimate is $62.59, implying the stock looks roughly 70.2% overvalued today. The Quality Score stands at 57/100 (solid quality), in the Technology sector. Bull case: the Growth Earnings group reads highest at a median of $157.14 per share, and 10 of the 24 models we run sit above the $106.50 price. Bear case: the Economic Profit group reads lowest at $14.68, and 14 of the 24 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Akamai Technologies Inc generated revenue of $4.3B at a net margin of 10.2%. Revenue grew 5.8% year over year. It earns a return on equity of 9.2%. Net debt stands at $6.0B. Fundamentals as of Aug 21, 2026

Our scenario range runs from $39.64 (bear case) to $88.51 (bull case); at $106.50, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 36% below its 52-week high and 53% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at −32% fair-value upside, at −41%, AKAM screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $2.02 per share, which is 3.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income $29.19 $31.95 $48.75 73
EPV $9.46 $14.68 $19.25 72
FCF DCF $59.11 $105.54 $253.38 71
All 24 models by family
DCF Models
FCF DCF $59.11 $105.54 $253.38 71
Owner Earnings $14.99 $61.98 $160.62 64
5Y Revenue Exit $32.14 $68.61 $144.70 65
5Y EBITDA Exit $94.07 $193.85 $389.92 68
5Y P/E Exit $49.63 $135.18 $251.31 64
10Y Revenue Exit $39.17 $105.17 $144.96 63
10Y EBITDA Exit $86.14 $238.53 $510.60 60
10Y P/E Exit $53.72 $142.83 $288.28 57
Earnings-Based
Graham-Dodd $21.14 $147.44 $206.92 61
Lynch FV $76.18 $108.82 $141.47 59
PEG = 1.0 $76.18 $108.82 $141.47 55
EPV $9.46 $14.68 $19.25 72
Multiples
P/E Multiple $65.29 $87.06 $108.82 63
P/S Multiple $39.64 $52.86 $66.07 58
P/B Multiple $39.64 $52.86 $66.07 55
EV/EBIT $55.94 $81.87 $107.80 65
EV/EBITDA $102.30 $143.67 $185.05 67
EV/Revenue $17.48 $34.34 $51.19 51
Asset-Based
NCAV (Graham) $17.12 $22.94 $34.24 54
Growth DCF
Growth DCF $54.30 $129.29 $252.16 71
Rev-Margin DCF $37.58 $81.68 $174.19 65
Economic Profit
Residual Income $29.19 $31.95 $48.75 73
ROIC Compounder $9.46 $14.68 $19.25 69
Growth Earnings
Growth-Adj P/E $110.00 $157.14 $204.28 65

Widest divergence: Growth Earnings ($157.14) versus Economic Profit ($14.68). Highest evidence: Residual Income (73).

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Key figures & financial health

P/E ratio 40.2 as of Jul 18, 2026
P/S ratio 4.32 P/E × margin
EPS (TTM) $2.99 price ÷ EPS = P/E 40.2
Net margin 10.7% FY2025
Return on equity 9.2% TTM
Return on assets (EBIT) 7.0% avg 5y
More key figures
Profitability
Operating margin 10.6% TTM
Growth
Revenue (TTM) $4.3B TTM
Revenue growth (YoY) +5.8% 3y avg +5.2%
EPS growth (YoY) −13.4%
Balance sheet & cash flow
Free cash flow $699M FY2025
Net debt $6.0B FY2025 · ≈ 8.5 yrs of FCF

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 59 · Market factors (momentum, volatility) 50

Profitability 37
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 64
Balance sheet, leverage, solvency risk
Investment 41
Disciplined investing over empire-building
Low Volatility 48
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 57
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Akamai Technologies, Inc. engages in the provision of security, delivery, and cloud computing solutions in the United States and internationally.

Full company description

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. Akamai Technologies, Inc. was incorporated in 1998 and is headquartered in Cambridge, Massachusetts.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Akamai Technologies Inc reported revenue of $4.2B in FY2025 versus $3.5B in FY2021, a compound +5.0%/yr. Reported net income was $452M in FY2025, compounding −8.7%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
$4.2B
Latest YoY
+5.4%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.2%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.6%
Avg. revenue growth/yr (27Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+75.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
−0.8% (−0.8 + 0.0)
Revenue +5.0%/yr
FY21 $3.5B
FY22 $3.6B
FY23 $3.8B
FY24 $4.0B
FY25 $4.2B
Net income −8.7%/yr
FY21 $652M
FY22 $524M
FY23 $548M
FY24 $505M
FY25 $452M
Character of growth · EPS growth decomposed (2014-2025) +6.8 % p.a.
Revenue per share +9.0 %

of which total revenue +7.0 % · buybacks/dilution +1.8 %

EBIT margin −4.1 %
Tax rate +1.8 %
Residual (interest, one-offs) +0.4 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

AKAM screens 70% overvalued. Compare with Microsoft Corporation →

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Cite: Fair Value Calculator (2026). "Akamai Technologies Inc Fair Value". https://www.fairvalue-calculator.com/stock/AKAM

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Software - Infrastructure · 369 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 57 · Above median
Fair Value upside −41% · Below median
Return on equity (TTM) 9% · Above median
Return on assets 3% · Above median
Net margin (TTM) 10% · Above median
Operating margin (TTM) 11% · Above median
Revenue growth 6% · Below median
Debt / equity 0.83× · Higher than 75% of peers

Valuation Multiples vs Software - Infrastructure median · lower = cheaper

P/E (TTM) 40.2× · Pricier than median
P/B 3.51× · Pricier than median
P/S (TTM) 4.10× · Pricier than median
P/FCF 25.0× · Pricier than 75% of peers
EV/EBITDA 18.0× · Pricier than median
PEG 1.41× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE29 · sector 50
PAST37 · sector 15
HEALTH59 · sector 98
DIVIDEND0 · sector 26

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Software - Infrastructure stocks, each showing price versus our Fair Value estimate (as of Aug 21, 2026).

Stock Price Fair Value vs Fair Value
Microsoft Corporation MSFT $480.35 $365.74 −24%
Oracle Corporation ORCL $151.94 $117.84 −22%
Fortinet, Inc FTNT $166.00 $61.46 −63%
Synopsys, Inc SNPS $442.61 $101.19 −77%
Block, Inc XYZ A$111.01 A$70.69 −36%
CoreWeave, Inc CRWV $105.26 $71.79 −32%
NetApp, Inc NTAP $190.64 $154.83 −19%
Adyen N.V ADYEN €1,007 €707.53 −30%
MongoDB, Inc MDB $440.58 $93.91 −79%
Okta, Inc OKTA $166.23 $30.50 −82%

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Frequently asked questions

Is Akamai Technologies Inc (AKAM) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of $62.59 versus a price of $106.50, about −41% upside (overvalued).
What is the fair value of AKAM?
Our model-based fair value for Akamai Technologies Inc is $62.59 (as of Aug 21, 2026), built from audited fundamentals. The current price: $106.50.
What is the quality score of AKAM?
Akamai Technologies Inc has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Akamai Technologies Inc (AKAM)?
Akamai Technologies Inc reported trailing-twelve-month revenue of about $4.3B (latest available figure, as of Aug 21, 2026).
What is the net profit margin of AKAM?
The net profit margin of Akamai Technologies Inc is about 10.2%, meaning it keeps roughly 10.2% of revenue as net income. Based on the latest reported figures.
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