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Akamai Technologies (Akamai Technologies) PEG Ratio

: 1.62 (As of Today)
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PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Akamai Technologies's PE Ratio without NRI is 16.22. Akamai Technologies's 5-Year EBITDA growth rate is 10.00%. Therefore, Akamai Technologies's PEG Ratio for today is 1.62.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for Akamai Technologies's PEG Ratio or its related term are showing as below:

AKAM' s PEG Ratio Range Over the Past 10 Years
Min: 0.8   Med: 1.75   Max: 5.12
Current: 1.62


During the past 13 years, Akamai Technologies's highest PEG Ratio was 5.12. The lowest was 0.80. And the median was 1.75.


AKAM's PEG Ratio is ranked better than
50% of 780 companies
in the Software industry
Industry Median: 1.62 vs AKAM: 1.62

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Akamai Technologies PEG Ratio Historical Data

The historical data trend for Akamai Technologies's PEG Ratio 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.

* Premium members only.

Akamai Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PEG Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.32 1.84 1.33 0.94 2.21

Akamai Technologies Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PEG Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.94 0.95 1.23 1.67 2.21

Competitive Comparison

For the Software - Infrastructure subindustry, Akamai Technologies's PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio Distribution

For the Software industry and Technology sector, Akamai Technologies's PEG Ratio distribution charts can be found below:

* The bar in red indicates where Akamai Technologies's PEG Ratio falls into.



Akamai Technologies PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Akamai Technologies's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=16.220611916264/10.00
=1.62

* 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.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Akamai Technologies  (NAS:AKAM) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Akamai Technologies PEG Ratio Related Terms

Thank you for viewing the detailed overview of Akamai Technologies's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Akamai Technologies (Akamai Technologies) Business Description

Traded in Other Exchanges
Address
145 Broadway, Cambridge, MA, USA, 02142
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.
Executives
Paul C Joseph officer: EVP - Global Sales C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Kim Salem-jackson officer: EVP, Chief Marketing Officer C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Aaron Ahola officer: SVP & General Counsel C/O AKAMAI TECHNOLOGIES, INC., 150 BROADWAY, CAMBRIDGE MA 02142
Robert Blumofe officer: EVP Platform C/O AKAMAI TECHNOLOGIES, INC., 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Madhu Ranganathan director 760 MARKET STREET, 4TH FLOOR, SAN FRANCISCO CA 94102
Edward J Mcgowan officer: Chief Financial Officer C/O AKAMAI TECHNOLOGIES, INC., 150 BROADWAY, CAMBRIDGE MA 02142
Anthony P Williams officer: EVP and CHRO C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Adam Karon officer: EVP & GM Media Division C/O AKAMAI TECHNOLOGIES, INC., 150 BROADWAY, CAMBRIDGE MA 02142
Mani Sundaram officer: EVP GSS and CIO C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
F Thomson Leighton director, officer: Chief Scientist 500 TECHNOLOGY SQUARE, FIFTH FLOOR, CAMBRIDGE MA 02139
Verwaayen Bernardus Johannes Maria director 55 GLENLAKE PARKWAY NE, ATLANTA GA 30328
Rick M Mcconnell officer: EVP - Products and Development LATITUDE, 2121 TASMAN DRIVE, SANTA CLARA CA 4089887256
Monte E Ford director C/O AKAMAI TECHNOLOGIES, INC., 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Laura Howell officer: VP, Chief Accounting Officer C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Jill A Greenthal director MARTHA STEWART LIVING OMNIMEDIA INC, 11 WEST 42ND STREET 25TH FLOOR, NEW YORK NY 10036