AKAM has a higher market value than 88.64% of US stocks; more precisely, its current market capitalization is $16,964,761,489.
AKAM's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 139.28 -- higher than 79.56% of US-listed equities with positive expected earnings growth.
In terms of volatility of its share price, AKAM is more volatile than just 6.2% of stocks we're observing.
If you're looking for stocks that are quantitatively similar to Akamai Technologies Inc, a group of peers worth examining would be FTNT, FICO, WST, TECH, and LOGI.
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:
Below please find a table outlining a discounted cash flow forecast for AKAM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Akamai Technologies Inc ranked in the 25th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for AKAM, they are:
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 27.77% 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 9.99. This coverage rate is greater than that of 76.87% 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 14.02% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Akamai Technologies Inc? See CNDT, DOX, INTU, BLKB, and IEHC.
Source: Glassdoor Ping Identity Holding Corp. (PING) has the potential to outperform. The market continues to discount execution worries and pressure from competitors. New growth bets are promising. New integrations will also drive product visibility. Ping's improved leverage ratios also make the company more attractive. The current valuation represents a...
Kayode Omotosho on Seeking Alpha | August 25, 2020
CAMBRIDGE, Mass., Aug. 3, 2020 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM), the intelligent edge platform for securing and delivering digital experiences, announced today that it has joined The Massachusetts Technology Leadership Council ("MassTLC") Tech Compact for Social…