DCF Tool

AKAM

Akamai Technologies Inc – Data Processing, Hosting, and Related Services
Akamai secures and delivers digital experiences for the world's largest companies. Akamai's intelligent edge platform surrounds everything, from the enterprise to the cloud, so customers and their businesses can be fast, smart, and secure. Top brands globally rely on Akamai to help them realize competitive advantage through agile solutions that extend the power of their multi-cloud architectures. Akamai keeps decisions, apps and experiences closer to users than anyone - and attacks and threats far away. Akamai's portfolio of edge security, web and mobile performance, enterprise access and video delivery solutions is supported by unmatched customer service, analytics and 24/7/365 monitoring.
Analysis Results
Intrinsic Value $97.61
Latest Price $89.93
Relative Value 8% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 10.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 575 539
2023 634 557
2024 700 576
2025 772 595
2026 852 615
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 18400 million. This corresponds to a present value of 12500 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2880 million. Adding in the terminal value gives a total present value of 15300 million.

There are presently 157.0 million outstanding shares, so the intrinsic value per share is 97.61.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,920,434,000
Current Cash 1,078,195,000
Current Liabilities 790,341,000
Current Debt 0
Non-Cash Working Capital (NCWC) 51,898,000
Change in NCWC -21,390,000
EBIT 779,877,000
Tax Provision 62,571,000
Depreciation and Amortization 550,632,000
Capital Expenditure -545,230,000
Unlevered Free Cash Flow 695,565,287
Current Assets 1,929,531,000
Current Cash 1,098,073,000
Current Liabilities 758,170,000
Current Debt 0
Non-Cash Working Capital (NCWC) 73,288,000
Change in NCWC 72,005,000
EBIT 682,714,000
Tax Provision 45,922,000
Depreciation and Amortization 478,389,000
Capital Expenditure -731,872,000
Unlevered Free Cash Flow 449,241,240
Current Assets 2,231,613,000
Current Cash 1,536,994,000
Current Liabilities 693,336,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,283,000
Change in NCWC -117,809,000
EBIT 564,975,000
Tax Provision 53,350,000
Depreciation and Amortization 440,674,000
Capital Expenditure -562,077,000
Unlevered Free Cash Flow 269,040,630
Current Assets 2,535,354,000
Current Cash 1,892,105,000
Current Liabilities 1,210,709,000
Current Debt 686,552,000
Non-Cash Working Capital (NCWC) 119,092,000
Change in NCWC -13,940,000
EBIT 390,093,000
Tax Provision 44,716,000
Depreciation and Amortization 434,520,000
Capital Expenditure -405,741,000
Unlevered Free Cash Flow 354,089,802
Current Assets 1,308,872,000
Current Cash 711,936,000
Current Liabilities 463,904,000
Current Debt 0
Non-Cash Working Capital (NCWC) 133,032,000
Change in NCWC 34,721,000
EBIT 371,103,000
Tax Provision 97,801,000
Depreciation and Amortization 372,313,000
Capital Expenditure -414,778,000
Unlevered Free Cash Flow 248,548,121
Current Assets 1,309,917,000
Current Cash 837,018,000
Current Liabilities 374,588,000
Current Debt 0
Non-Cash Working Capital (NCWC) 98,311,000
Change in NCWC -72,876,000
EBIT 469,895,000
Tax Provision 143,314,000
Depreciation and Amortization 334,302,000
Capital Expenditure -180,949,000
Unlevered Free Cash Flow 403,798,665
Current Assets 1,253,188,000
Current Cash 749,561,000
Current Liabilities 332,440,000
Current Debt 0
Non-Cash Working Capital (NCWC) 171,187,000
Change in NCWC 935,000
EBIT 466,917,000
Tax Provision 135,218,000
Depreciation and Amortization 299,563,000
Capital Expenditure -311,676,000
Unlevered Free Cash Flow 317,472,980
Current Assets 1,262,555,000
Current Cash 758,292,000
Current Liabilities 334,011,000
Current Debt 0
Non-Cash Working Capital (NCWC) 170,252,000
Change in NCWC 77,600,000
EBIT 490,708,000
Tax Provision 145,828,000
Depreciation and Amortization 247,406,000
Capital Expenditure -207,159,000
Unlevered Free Cash Flow 459,404,216
Current Assets 1,029,714,000
Current Cash 673,896,000
Current Liabilities 263,166,000
Current Debt 0
Non-Cash Working Capital (NCWC) 92,652,000
Change in NCWC 4,793,000
EBIT 415,811,000
Tax Provision 126,067,000
Depreciation and Amortization 184,431,000
Capital Expenditure -260,073,000
Unlevered Free Cash Flow 220,019,691
Current Assets 728,384,000
Current Cash 437,581,000
Current Liabilities 202,944,000
Current Debt 0
Non-Cash Working Capital (NCWC) 87,859,000
Change in NCWC -36,543,000
EBIT 314,893,000
Tax Provision 117,602,000
Depreciation and Amortization 204,163,000
Capital Expenditure -165,642,000
Unlevered Free Cash Flow 201,718,378

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.