Akamai Technologies provides cloud services for delivering, optimizing, and securing online content and business applications in the United States and internationally. The company was founded in 1998 and is based in Cambridge, Massachusetts.
AKAM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Akamai Technologies Inc. To summarize, we found that Akamai Technologies Inc ranked in the 24th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 64.5%. As for the metrics that stood out in our discounted cash flow analysis of Akamai Technologies Inc, consider:
AKAM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 33.98% of tickers in our DCF set.
Akamai Technologies Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 10.87. This coverage rate is greater than that of 77.27% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 8. This value is greater than only 17.67% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AKAM, try ESE, SFUN, SMTC, CTXS, and ITRI.
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In this article you are going to find out whether hedge funds think Akamai Technologies, Inc. (NASDAQ:AKAM) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]
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