Akamai Technologies, Inc. (AKAM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+54.3%

$137.95

vs $89.44 price

Levered DCF

$228.19

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.66

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	28.05×	28.64×	32.97×	25.62×	29.19×	30.61×	29.38×	34.31×
P/B	2.55×	2.97×	3.93×	3.08×	4.2×	4.01×	3.84×	3.2×
P/S	3.01×	3.63×	4.74×	3.71×	5.5×	5.33×	4.86×	3.76×
EV / EBITDA	13.91×	14.73×	17.8×	12.71×	15.81×	16.74×	15.97×	13.09×
Gross margin	54.7%	59.4%	60.4%	61.7%	63.3%	64.6%	65.9%	64.9%
Operating margin	14.9%	13.4%	16.7%	18.7%	22.6%	20.6%	19.0%	13.4%
Net margin	10.7%	12.7%	14.4%	14.5%	18.8%	17.4%	16.5%	11.0%
Current ratio	2.29×	1.23×	2.16×	2.41×	2.43×	2.54×	3.22×	2.09×
Debt / equity	1.39×	0.95×	0.99×	0.73×	0.63×	0.65×	0.73×	0.49×
Interest coverage	20.42×	19.67×	35.99×	60.95×	10.83×	9.53×	11.12×	8.39×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.1%	10.4%	11.9%	12.0%	14.4%	13.1%	13.1%	9.3%
Return on invested capital	4.3%	4.7%	5.7%	7.1%	9.3%	8.5%	7.7%	6.4%
Return on assets	3.9%	4.9%	5.5%	6.3%	8.0%	7.2%	6.8%	5.5%
Free cash flow yield	5.5%	5.8%	3.4%	6.1%	4.5%	2.8%	3.5%	5.9%
Earnings yield	3.6%	3.5%	3.0%	3.9%	3.4%	3.3%	3.4%	2.9%
Enterprise value	$18.7B	$18.6B	$22.1B	$16B	$21.4B	$19.5B	$16.3B	$10.7B
Net debt / EBITDA	4.46×	3.26×	3.26×	2.09×	1.72×	2.08×	2.23×	0.64×
Cash conversion cycle (days)	45	37	34	30	40	37	18	27