Akamai Technologies, Inc. (AKAM) DCF Valuation
Transparent DCF models put Akamai Technologies, Inc. (AKAM)'s fair value in a range of $51.03 – $147.02 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $137.81 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $137.81, the market is pricing in roughly +14.7%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +6.4%. The price is betting on acceleration above its track record.
Current Price
$137.81
Fair-Value Range
$51.03 – $147.02
Market-Implied Growth
+14.7%/yr
vs +6.4% 5Y actual
AKAM DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $742.0M · 0.15B shares · net debt $4.7B
Estimated Fair Value
$51.03
-63.0% vs $137.81
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $137.81; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $71.34 | $76.68 | $82.98 | $90.54 | $99.78 |
| 9.0% | $56.67 | $60.32 | $64.53 | $69.43 | $75.23 |
| 10.0% | $45.50 | $48.09 | $51.03 | $54.39 | $58.26 |
| 11.0% | $36.72 | $38.62 | $40.74 | $43.13 | $45.84 |
| 12.0% | $29.64 | $31.07 | $32.65 | $34.40 | $36.36 |
About Akamai Technologies, Inc.
Akamai Technologies, Inc. (AKAM) is a leading global provider of cloud services, specializing in the secure delivery, optimization, and protection of online content and business applications across the internet. The company's primary focus involves offering sophisticated cloud-based solutions designed to shield digital infrastructure, websites, applications (including APIs), and end-users from a wide array of cyberattacks and online threats, all while simultaneously enhancing performance. Akamai further excels in accelerating web and mobile experiences, facilitating dynamic and highly responsive websites and applications. Its extensive media delivery offerings encompass seamless video streaming and player services, efficient game and software distribution, robust broadcast operations, authoritative Domain Name System (DNS) resolution, and comprehensive data analytics. Additionally, Akamai provides cutting-edge edge compute solutions, empowering developers to deploy and run their code directly at the network's edge for improved efficiency and reduced latency. The company also extends its expertise to telecommunications carriers, offering specialized services such as advanced cybersecurity protection, parental controls, resilient DNS infrastructure, and content delivery solutions. To ensure client success, Akamai offers a full suite of support services to assist with the seamless integration, configuration, optimization, and ongoing management of its diverse product portfolio. Akamai distributes its solutions through both its dedicated direct sales and service organizations and an extensive network of channel partners. Founded in 1998, Akamai Technologies, Inc. is headquartered in Cambridge, Massachusetts.
- Sector
- Technology
- Industry
- Software - Infrastructure
- CEO
- F. Thomson Leighton