We publish no single base value for Akamai Technologies. Our valuation methods put it between $28.43 and $86.64 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | $28.43 | -67.2% | free cash flow $210.94m, growth 6.22% for 5 years, then fading to 3% over 5 more, discounted at 9.13%; stress floor $17.78 |
| Exit multiple (P/E) | $86.64 | +0.1% | earnings per share $6.54 valued at 16.35× (the stock's own median P/E) in 5 years, discounted back |
| Sum of the parts | — | — | no sum of the parts: this run holds no segment disclosure for the name |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | — | — | used only for lenders, where book value is the business |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
The discount rate:
| Risk-free rate | 5.13% (10-year US Treasury yield) |
| Company's own beta | 0.65 (5 years of monthly returns against the S&P 500; standard error 0.29) |
| Peer beta | 1.34 (median of 73 S&P 500 Information Technology companies) |
| Blend of own and peers | 0.83 (74% own, 26% peers, weighted by how precisely the company's own beta is measured) |
| Adjusted beta | 0.89 (0.67 × 0.83 + 0.33, pulled toward the market's 1.0) |
| Equity risk premium | 4.5% |
| Discount rate = risk-free + adjusted beta × premium | 9.13% |
Free cash flow grows 6.22% a year for 5 years, then fades in equal steps toward 3% over 5 more; each year is discounted by 1 ÷ (1 + rate)^year:
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Now | — | $210.94m | — | — |
| Year 1 | 6.22% | $224.07m | 0.9163 | $205.31m |
| Year 2 | 6.22% | $238.00m | 0.8396 | $199.83m |
| Year 3 | 6.22% | $252.81m | 0.7693 | $194.49m |
| Year 4 | 6.22% | $268.53m | 0.7049 | $189.29m |
| Year 5 | 6.22% | $285.23m | 0.6459 | $184.24m |
| Year 6 | 5.68% | $301.44m | 0.5919 | $178.41m |
| Year 7 | 5.15% | $316.96m | 0.5423 | $171.89m |
| Year 8 | 4.61% | $331.57m | 0.4969 | $164.76m |
| Year 9 | 4.07% | $345.08m | 0.4553 | $157.12m |
| Year 10 | 3.54% | $357.28m | 0.4172 | $149.06m |
| Terminal value = year-10 cash flow × (1 + 3%) ÷ (9.13% − 3%) | $6.00bn |
| Terminal value in today's money | $2.50bn |
| Present value of years 1–10 | $1.79bn |
| Total present value | $4.30bn |
| Shares outstanding | 151.17m |
| Value per share = total ÷ shares | $28.43 |
How the DCF value moves with the discount rate and the starting growth (the middle cell is the published value):
| Discount rate | Growth 1.22% | Growth 6.22% | Growth 11.22% |
|---|---|---|---|
| 8.13% | $25.06 | — | $46.30 |
| 9.13% | $21.04 | $28.43 | $38.26 |
| 10.13% | $18.15 | $24.32 | — |
The same DCF at each beta, starting growth unchanged:
| Beta | Value | Discount rate | DCF value |
|---|---|---|---|
| Company's own beta | 0.65 | 8.05% | — |
| Peer beta | 1.34 | 11.16% | $21.16 |
| Adjusted beta (used) | 0.89 | 9.13% | $28.43 |
Earnings per share grow on the same fading path as the DCF:
| Year | Growth | Earnings per share |
|---|---|---|
| Now | — | $6.54 |
| Year 1 | 6.22% | $6.95 |
| Year 2 | 5.09% | $7.31 |
| Year 3 | 4.36% | $7.62 |
| Year 4 | 3.88% | $7.92 |
| Year 5 | 3.57% | $8.20 |
| Earnings per share in year 5 | $8.20 |
| Exit P/E (the stock's own median P/E) | 16.35× |
| Value in 5 years = earnings × P/E | $134.13 |
| Discounted at 9.13% over 5 years: ÷ 1.5482 | $86.64 |
We publish no single base value for Akamai Technologies. Our valuation methods put it between $28.43 and $86.64 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
One-year price simulation: a 10% chance the price is below $37.03 and a 10% chance it is above $169.65 in a year; a 44% chance it is higher than today's $86.56, from 59.08% volatility. The simulation assumes the price drifts up at our discount rate of 9.13% a year.
At $86.56 the price implies free cash flow growing 25.4% a year for five years and then fading toward 3% over five more; its revenue has grown 6.2%.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $108.92 | — |
| 9 Oct 2026 | $106.95 | — |
| 16 Oct 2026 | $87.81 | — |
| 23 Oct 2026 | $93.53 | — |
| 30 Oct 2026 | $92.72 | — |
| 6 Nov 2026 | $83.09 | — |
| 12 Nov 2026 | $86.56 | — |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
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