Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Akamai Technologies's Enterprise Value is $19,267 Mil.
Akamai Technologies's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 was $671 Mil. Therefore, Akamai Technologies's EV-to-EBIT ratio for today is 28.70.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Akamai Technologies's Enterprise Value is $19,267 Mil.
Akamai Technologies's EBITDA for the trailing twelve months (TTM) ended in Dec. 2023 was $1,242 Mil. Therefore, Akamai Technologies's EV-to-EBITDA ratio for today is 15.51.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Akamai Technologies's Enterprise Value is $19,267 Mil.
Akamai Technologies's Revenue for the trailing twelve months (TTM) ended in Dec. 2023 was $3,812 Mil. Therefore, Akamai Technologies's EV-to-Revenue ratio for today is 5.05.
Akamai Technologies Enterprise Value Historical Data
The historical data trend for Akamai Technologies's Enterprise Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Akamai Technologies's Enterprise Value
For the Software - Infrastructure subindustry, Akamai Technologies's Enterprise Value, along with its competitors' market caps and Enterprise Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Akamai Technologies's Enterprise Value Distribution in the Software Industry
For the Software industry and Technology sector, Akamai Technologies's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Akamai Technologies's Enterprise Value falls into.
Akamai Technologies Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Akamai Technologies's Enterprise Value for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Akamai Technologies (NAS:AKAM) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Akamai Technologies's current Enterprise Value is $19,267 Mil.
Akamai Technologies's EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $671 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Akamai Technologies's current Enterprise Value is $19,267 Mil.
Akamai Technologies's EBITDA for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,242 Mil.
Akamai Technologies's current Enterprise Value is $19,267 Mil.
Akamai Technologies's Revenue for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,812 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Akamai Technologies Enterprise Value Related Terms
Thank you for viewing the detailed overview of Akamai Technologies's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Akamai Technologies (Akamai Technologies) Business Description
Akamai operates a content delivery network, or CDN, which entails locating servers at the edges of networks so its customers, which store content on Akamai servers, can reach their own customers faster, more securely, and with better quality. Akamai has over 325,000 servers distributed over 4,100 points of presence in more than 1,000 cities worldwide. Its customers generally include media companies, which stream video content or make video games available for download, and other enterprises that run interactive or high-traffic websites, such as e-commerce firms and financial institutions. Akamai also has a significant security business, which is integrated with its core delivery and computing businesses to protect customers from cyberthreats.
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