What is Akamai Technologies, Inc. (AKAM) DCF Fair Value and Intrinsic Value in 2026?

Akamai Technologies, Inc. (AKAM) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Akamai Technologies, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Akamai Technologies, Inc. operates in the Technology sector (Software - Infrastructure) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Akamai Technologies, Inc.'s financial health rating and Piotroski F-Score?

Akamai Technologies, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Akamai Technologies, Inc. (AKAM) for quarterly SEC filing thesis breaks?

LocalAlpha audits Akamai Technologies, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksAKAM

AKAM

Akamai Technologies, Inc.Technology / Software - InfrastructureINTACT

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. The company also offers cloud computing services, which include compute, storage, and cloud native and networking services; and Akamai App Platform, provides ready-to-run templates that address challenges in deploying, managing and scaling Kubernetes clusters at scale. In addition, it offers delivery solutions that include web and mobile performance solutions, which enables dynamic websites and applications, as well as global traffic management, site acceleration, application load balancing, large-scale load testing, and real-user monitoring; and media delivery solutions, including video streaming and video player services, game and software delivery, broadcast operations, authoritative domain name system, resolution, and data and analytics. The company has a strategic alliance with Deloitte Canada to help organizations achieve platform-based resilience against AI-accelerated cyberthreats. Akamai Technologies, Inc. was incorporated in 1998 and is headquartered in Cambridge, Massachusetts.

Share Price

$107.78

52W: $70.82 - $165.45

DCF Fair Value

$52.23

-106.4% Premium

Thesis Hub

P/E (TTM)

39.1x

ROIC

Operating Margin

7.6%

FCF Yield

4.6%

Debt / Equity

1.97x

Piotroski Score

7/9

Altman Z-Score

2.27

Market Cap

$15.5B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($52.23)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$52.23

MOS Buy Target (-25%)

$39.17

Valuation Overlays: DCF Fair Value ($52.23) 25% MOS Buy Target ($39.17) Revised Graham ($41.75) Graham Number ($45.32)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$107.78

DCF Fair Value

$52.58

-105% Premium

Starting Free Cash Flow ($M)$710M

$100M$710M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$5,900M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$5.8B

PV of Terminal Value

$7.6B

Implied Enterprise Value

$13.5B

Implied Equity Value

$7.6B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$748	$787	$829	$873	$919	$961	$1,004	$1,049	$1,096	$1,145
Present Value (PV)	$686	$663	$640	$618	$597	$573	$549	$526	$505	$484

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-137.8% Premium

$45.32

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $2.76BVPS: $33.07

Revised Graham Formula-158.2% Premium

$41.75

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings4.3% Yield

$4.68 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.7BYield: 4.3%

Reverse DCF: Market Growth Expectation

MODEST BARRIER

6.8% CAGR (Next 10 Yrs)

At the current price of $107.78, the market is assuming the business will compound Free Cash Flow at 6.8% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil AKAM with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Akamai Technologies, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 7.6% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Akamai Technologies, Inc. (AKAM) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Akamai Technologies, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Akamai Technologies, Inc. has an estimated DCF intrinsic fair value of $52.23 per share compared to its current market price of $107.78. This represents an estimated 106.4% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $45.32.