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AKAM

S&P 500
Weak · 39/100

Akamai Technologies

Information Technology
Internet Services & Infrastructure

$120.74

3.3%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 58.7% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$18.16B

P/E

41.78x

Forward P/E (est.)

41.71x

ROE

9.1%

Revenue Growth

6.2%

EPS Growth

0.1%

Profit Margin

10.2%

FCF Yield

5.5%

Debt / Equity

0.82x

ROIC

9.0%

Interest Coverage

32.01x

Current Ratio

2.06x

Dividend Yield

Implied Growth (rev. DCF)

3.3%

Rating Score

39/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what AKAM's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. AKAM trades near $120.74, around its 50-day average ($126.46) and 200-day average ($99.08). Price tangled in its moving averages means there is no clear trend — the stock is ranging.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 28 it is oversold — selling has been heavy and a bounce is possible.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. AKAM's is $7.76 (~6.4% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month AKAM found buyers near $122.76 (support) and sellers near $164.80 (resistance); its 52-week range is $69.78–$165.45. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.6× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

Akamai Technologies (AKAM) is a large-cap company in the Internet Services & Infrastructure industry, part of the Information Technology sector of the S&P 500, with a market value around $18.16B.

In its latest reported year it generated about $4.21B in revenue and $452.03M in net profit.

Our model rates AKAM Weak (39/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

5.0%

Revenue moved from $3.46B in 2021 to $4.21B in 2025, a 5.0% compound annual growth rate. The most recent year grew a steady 6.2% year over year. Slower, mature growth is common for established businesses.

Profitability
Research

Gross Margin

58.3%

Operating Margin

13.5%

Net Margin

10.7%

ROE

9.1%

Akamai Technologies keeps about 10.2% of each sales dollar as net profit, with a 58.3% gross margin and 13.5% operating margin. Return on equity is 9.1% and return on invested capital about 9.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research

Total Debt

Net Debt

Net Debt / EBITDA

Debt / Equity

0.82x

Leverage: debt-to-equity is 0.8x, and operating profit covers interest about 32.0x, with a current ratio of 2.1x. That is a moderate, manageable debt load for most businesses.

Cash Flow Analysis
Research

Operating CF

$1.52B

Free Cash Flow

$1.01B

FCF Margin

24.0%

In the latest year Akamai Technologies produced about $1.52B of operating cash flow and $1.01B of free cash flow after capital spending. That is a free-cash-flow yield of about 5.5% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research

P/E

41.78x

P/S

4.58x

P/B

2.38x

EV / EBITDA

14.59x

AKAM trades at 41.8x trailing earnings (about 41.7x on estimated forward earnings), 4.6x sales, and 2.4x book value. Reverse-engineering today's price implies the market expects roughly 3.3% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
41.8xExpensive
Forward P/E
41.7xExpensive
P/S ratio
4.6xExpensive
Revenue growth
6.2%Average
EPS growth
0.1%Weak
Gross margin
58.3%Strong
Net margin
10.2%Strong
ROE
9.1%Weak

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How AKAM stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.

In the Information Technology sector (72 S&P 500 companies), AKAM ranks #66 of 72 by our overall rating. It trades at a premium versus the sector on earnings (41.8x P/E vs. 35.6x median) with a lower return on equity (9.1% vs. 25.6%) and slower revenue growth (6.2% vs. 17.4%).

P/E vs sector

41.8x

median 35.6x

ROE vs sector

9.1%

median 25.6%

Growth vs sector

6.2%

median 17.4%

Sector rank

#66

of 72 by rating

CompanyP/ERev Gr.Rating
AKAMThis stock41.8x6.2%Weak· 39
VRSN28.6x6.8%Favorable· 63
GDDY11.8x7.8%Favorable· 60
SMCI15.9x56.2%Favorable· 64
CDW15.5x7.4%Neutral· 51
CTSH9.3x6.6%Neutral· 56
HPQ8.4x5.7%Neutral· 53
FFIV30.7x9.7%Favorable· 62
Information Technology median35.6x17.4%61/100

Valuation vs. quality map

sector medianVRSNGDDYSMCICDWCTSHHPQFFIVAKAMP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 72 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$106.52$178.96

vs. $120.74 today · expected CAGR -2%8%

Metric20262027202820292030
Revenue$4.46B$4.73B$5.01B$5.31B$5.63B
Net income$490.67M$520.11M$551.32M$584.40M$619.46M
EPS$3.37$3.58$3.79$4.02$4.26
Share price (low)$84.37$89.44$94.80$100.49$106.52
Share price (high)$141.75$150.25$159.27$168.83$178.96
CAGR (low–high)-30% / 17%-14% / 12%-8% / 10%-4% / 9%-2% / 8%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for AKAM:

  • Healthy free-cash-flow yield (~5.5%) funds buybacks and dividends.
  • As an established S&P 500 member in Information Technology, it brings scale and a long operating history.
Bear Case

The case against AKAM:

  • A rich 41.8x earnings multiple prices in a lot of growth.
  • Our model's overall read is Weak (39/100).
Key Risks
Research

Valuation risk — at 41.8x earnings, disappointing results could compress the multiple.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen weakly: Akamai Technologies is a large-cap information technology business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at 41.8x earnings, which our model scores Weak (39/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.