Akamai Technologies, Inc. (AKAM) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Technology · Software - Infrastructure
Is Akamai Technologies, Inc. a safe investment right now?
Akamai Technologies, Inc.'s Altman Z-Score of 2.42 places it in the gray zone. Our fair value estimate is $123.20 (Strong Buy Zone). Moat rating: 2.6/5 stars.
Could Akamai Technologies, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 2.42 places the company in the gray zone (1.8-3.0), warranting closer scrutiny.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives AKAM's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.1149 | 1.2 | 0.14 |
| B · Retained Earnings / Total Assets | RE / TA | 0.2983 | 1.4 | 0.42 |
| C · EBIT / Total Assets | EBIT / TA | 0.0552 | 3.3 | 0.18 |
| D · Market Cap / Total Liabilities | MCap / TL | 2.1987 | 0.6 | 1.32 |
| E · Revenue / Total Assets | Rev / TA | 0.3666 | 1.0 | 0.37 |
How has AKAM's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 3.37 | Safe |
| 2023 | 2.69 | Gray |
| 2024 | 2.6 | Gray |
| 2025 | 2.42 | Gray |
Source: Calculated from AKAM's latest 10-K filing on SEC EDGAR.
What is Akamai Technologies, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $4.58 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $3.07 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $6.86 | 23 analysts consensus |
| Trailing P/E | 31.6x | Current market pricing |
| Fair P/E (β discount) | 26.9x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $111.63 (23 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Akamai Technologies, Inc. have a durable competitive advantage?
Moat rating: 2.6/5.
What makes up AKAM's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 2/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is AKAM's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 10.1% | — |
| 2023 | 8.2% | Declining |
| 2024 | 7.3% | Stable |
| 2025 | 7.0% | Stable |
Source: ROIC calculated from SEC EDGAR filings.
Is Akamai Technologies, Inc.'s dividend safe?
Akamai Technologies, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $4.2B | $4.0B | $3.6B | Rising |
| Net Income | $0.5B | $0.5B | $0.5B | Declining |
| Free Cash Flow | $0.7B | $0.8B | $0.8B | Declining |
| Gross Margin | 59.0% | 59.4% | 61.7% | Stable |
Recent events that affect our AKAM analysis
AKAM earnings report scheduled
Upcoming report. Consensus EPS estimate: $1.60. Revenue estimate: $1.07B. Our current Fair Value: $123.20 — a significant beat or miss could shift this estimate.
AKAM analyst consensus: 58% bullish (14 of 24 analysts)
4 Strong Buy, 10 Buy, 8 Hold, 1 Sell, 1 Strong Sell. Consensus target: $111.63 (15.0% upside). Compare with our independent Fair Value: $123.20.
AKAM beat EPS estimates by 5.1%
Reported EPS: $1.84 vs estimate $1.75. Earnings strength supports our Fair Value of $123.20 (26.9% above current price).
AKAM beat EPS estimates by 13.7%
Reported EPS: $1.86 vs estimate $1.64. Earnings strength supports our Fair Value of $123.20 (26.9% above current price).
AKAM beat EPS estimates by 13.2%
Reported EPS: $1.73 vs estimate $1.53. Earnings strength supports our Fair Value of $123.20 (26.9% above current price).
AKAM beat EPS estimates by 8.6%
Reported EPS: $1.70 vs estimate $1.57. Earnings strength supports our Fair Value of $123.20 (26.9% above current price).
AKAM beat EPS estimates by 9.0%
Reported EPS: $1.66 vs estimate $1.52. Earnings strength supports our Fair Value of $123.20 (26.9% above current price).
Common questions about Akamai Technologies, Inc.
What is Akamai Technologies, Inc. stock price today?
Akamai Technologies, Inc. (AKAM) stock price is $97.11 as of the latest market close, traded on the NASDAQ exchange.
What does Akamai Technologies, Inc. do?
Akamai Technologies, Inc. engages in the provision of security, delivery, and cloud computing solutions in the United States and internationally. It offers security solutions that include web application and application programming interfaces (API) protection solutions, which protect web, API, and mobile app traffic from attacks; Bot & Abuse portfolio, which provides solutions to help customers protect against threats; full account lifecycle protections including the ability to defend against account takeover and opening abuse, adversarial bot protection, protection against credential stuffing, inventory scalping, and hoarding; and solutions designed to stop persistent scrapers from stealing content; API security, which discovers, audits, and monitors API; and microservice and application component protection that analyzes and protects application traffic that moves between application components.
What is Akamai Technologies, Inc. market cap?
Akamai Technologies, Inc. has a market capitalization of $14.30B, classifying it as a large-cap stock in the Technology sector.
What sector and industry is AKAM in?
Akamai Technologies, Inc. operates in the Technology sector, specifically within the Software - Infrastructure industry. It trades on the NASDAQ under the ticker symbol AKAM.
Is AKAM stock overvalued or undervalued?
Based on our valuation model, Akamai Technologies, Inc. trades 21.2% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $123.20
- Current Price: $97.11
- Valuation Zone: Strong Buy Zone
What is AKAM stock forecast and analyst target price?
Based on 23 Wall Street analysts, the consensus price target for Akamai Technologies, Inc. is $111.63, implying upside of 15.0% from the current price.
- Analyst High Target: $134.00
- Analyst Low Target: $72.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Akamai Technologies, Inc. revenue and earnings growing?
Here are the analyst consensus growth estimates for Akamai Technologies, Inc.:
- Revenue growth (current year est.): 6.4%
- EPS growth (current year est.): -3.7%
- Revenue growth (next year est.): 7.1%
- EPS growth (next year est.): 10.8%
What are Akamai Technologies, Inc.'s key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $4.2B | Rising |
| Net Income | $0.5B | Declining |
| Free Cash Flow | $0.7B | Declining |
| Gross Margin | 59.0% | Stable |
What is AKAM's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 31.6x
- Forward P/E (next 12 months est.): 12.8x
- FairValueLabs Fair P/E: 26.9x
How volatile is AKAM stock?
Akamai Technologies, Inc. has a beta of 0.59, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Akamai Technologies, Inc. have?
Akamai Technologies, Inc.'s balance sheet shows:
- Total Cash: $1.19B
- Total Debt: $5.68B
- Net Cash Position: $-4.49B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Akamai Technologies, Inc.'s free cash flow?
Akamai Technologies, Inc. generated $578.7M in trailing twelve-month free cash flow (from $1.52B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Akamai Technologies, Inc. pay a dividend?
Akamai Technologies, Inc. does not currently pay a regular dividend to shareholders. The company may be reinvesting all profits back into growth, or it may have suspended its dividend.
Is Akamai Technologies, Inc. at risk of going bankrupt?
Akamai Technologies, Inc.'s Altman Z-Score is 2.42, placing it in the gray zone (1.8–3.0) — some financial uncertainty. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Akamai Technologies, Inc. have a durable competitive advantage?
Akamai Technologies, Inc. scores 2.6/5 stars (Narrow moat · eroding) in our moat analysis:
- ROIC Stability: 2/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is AKAM's return on equity (ROE)?
Akamai Technologies, Inc.'s return on equity is 9.2%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy AKAM stock?
AKAM shares can be purchased through any brokerage account that provides access to the NASDAQ. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol AKAM
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is AKAM a value stock or speculative?
FairValueLabs classifies Akamai Technologies, Inc. as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Akamai Technologies, Inc.?
The current CEO of Akamai Technologies, Inc. is Dr. F. Thomson Leighton.
What is AKAM's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $3.07
- Forward EPS (next 12 months est.): $7.60
- Analyst consensus EPS (this year): $6.86
- Analyst consensus EPS (next year): $7.60
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
AKAM analysis methodology: How we calculate fair value, Z-Scores, and moat ratings