| Company name | Akamai Technologies, Inc. |
| Stock ticker | AKAM |
| Live stock price | [stckqut]AKAM[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Fair |
| EPS growth | Fair |
| P/E growth | Poor |
| EBIT growth | Fair |
ANALYSIS
| Confident Investor Rating | Poor |
| Target stock price (TWCA growth scenario) | $40. |
| Target stock price (averages with growth) | $40.79 |
| Target stock price (averages with no growth) | $25.1 |
| Target stock price (manual assumptions) | $44.12 |
The following company description is from Google Finance: http://www.google.com/finance?q=akam
Akamai Technologies, Inc. is engaged in providing cloud services for delivering, optimizing and securing content and business applications over the Internet. The Company’s across the globe distributed platform comprises approximately 200,000 servers in over 1,400 networks in over 120 countries. It is involved in offering content delivery network (CDN) services. Its services include the delivery of content, applications and software over the Internet, as well as mobile and security solutions, and enterprise professional services. Its solutions include Performance and Security Solutions, Media Delivery Solutions, and Service and Support Solutions. Performance and Security Solutions are designed to help Websites and business applications operate while offering protection against security threats. Media Delivery Solutions are designed to enable enterprises to execute their digital media distribution strategies. Service and Support Solutions offer professional services and solutions.
Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in Akamai Technologies, Inc. I am removing Akamai from my Watch List.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Akamai Technologies, Inc. calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $53.19
- Growth: 0.06
- Current EPS (TTM): $1.77
- P/E: 30
- Future EPS Calc: $2.36
- Future Stock Price Calc: $71.05
- Target stock price: $44.12
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I hope that this makes you a Confident Investor.