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Akamai Technologies (LTS:0HBQ) Cyclically Adjusted PB Ratio : 4.61 (As of Apr. 27, 2024)


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What is Akamai Technologies Cyclically Adjusted PB Ratio?

As of today (2024-04-27), Akamai Technologies's current share price is $112.34. Akamai Technologies's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 was $24.35. Akamai Technologies's Cyclically Adjusted PB Ratio for today is 4.61.

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

LTS:0HBQ' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 3.02   Med: 5.02   Max: 7.21
Current: 3.96

During the past years, Akamai Technologies's highest Cyclically Adjusted PB Ratio was 7.21. The lowest was 3.02. And the median was 5.02.

LTS:0HBQ's Cyclically Adjusted PB Ratio is ranked worse than
66.07% of 1288 companies
in the Software industry
Industry Median: 2.495 vs LTS:0HBQ: 3.96

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Akamai Technologies's adjusted book value per share data for the three months ended in Dec. 2023 was $30.398. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $24.35 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Akamai Technologies Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Akamai Technologies's Cyclically Adjusted PB 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 Cyclically Adjusted PB Ratio Chart

Akamai Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.99 5.62 5.48 3.54 4.61

Akamai Technologies Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial 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 3.54 3.20 3.60 4.18 4.61

Competitive Comparison of Akamai Technologies's Cyclically Adjusted PB Ratio

For the Software - Infrastructure subindustry, Akamai Technologies's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB 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's Cyclically Adjusted PB Ratio Distribution in the Software Industry

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

* The bar in red indicates where Akamai Technologies's Cyclically Adjusted PB Ratio falls into.



Akamai Technologies Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Akamai Technologies's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=112.34/24.35
=4.61

* 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's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Akamai Technologies's adjusted Book Value per Share data for the three months ended in Dec. 2023 was:

Adj_Book=Book Value per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=30.398/129.4194*129.4194
=30.398

Current CPI (Dec. 2023) = 129.4194.

Akamai Technologies Quarterly Data

Book Value per Share CPI Adj_Book
201403 15.193 99.695 19.723
201406 15.554 100.560 20.018
201409 15.985 100.428 20.600
201412 16.519 99.070 21.580
201503 16.687 99.621 21.678
201506 17.033 100.684 21.894
201509 17.312 100.392 22.318
201512 17.611 99.792 22.839
201603 17.686 100.470 22.782
201606 17.991 101.688 22.897
201609 18.247 101.861 23.184
201612 18.606 101.863 23.639
201703 18.815 102.862 23.673
201706 19.108 103.349 23.928
201709 19.282 104.136 23.964
201712 19.792 104.011 24.627
201803 19.821 105.290 24.364
201806 20.349 106.317 24.771
201809 19.254 106.507 23.396
201812 19.593 105.998 23.922
201903 20.080 107.251 24.231
201906 20.781 108.070 24.886
201909 21.660 108.329 25.877
201912 22.580 108.420 26.953
202003 22.643 108.902 26.909
202006 24.007 108.767 28.565
202009 25.231 109.815 29.735
202012 26.128 109.897 30.770
202103 26.471 111.754 30.655
202106 27.461 114.631 31.004
202109 28.213 115.734 31.549
202112 28.222 117.630 31.051
202203 26.789 121.301 28.582
202206 26.842 125.017 27.787
202209 26.813 125.227 27.711
202212 27.862 125.222 28.796
202303 27.309 127.348 27.753
202306 28.257 128.729 28.409
202309 28.645 129.860 28.548
202312 30.398 129.419 30.398

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Akamai Technologies  (LTS:0HBQ) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Akamai Technologies Cyclically Adjusted PB Ratio Related Terms

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


Akamai Technologies (LTS:0HBQ) 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.

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