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Akamai Technologies (HAM:AK3) E10 : €3.01 (As of Dec. 2024)


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What is Akamai Technologies E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Akamai Technologies's adjusted earnings per share data for the three months ended in Dec. 2024 was €0.869. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €3.01 for the trailing ten years ended in Dec. 2024.

During the past 12 months, Akamai Technologies's average E10 Growth Rate was 5.80% per year. During the past 3 years, the average E10 Growth Rate was 9.40% per year. During the past 5 years, the average E10 Growth Rate was 13.10% per year. During the past 10 years, the average E10 Growth Rate was 11.80% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of Akamai Technologies was 35.90% per year. The lowest was 5.40% per year. And the median was 11.30% per year.

As of today (2025-03-17), Akamai Technologies's current stock price is €74.50. Akamai Technologies's E10 for the quarter that ended in Dec. 2024 was €3.01. Akamai Technologies's Shiller PE Ratio of today is 24.75.

During the past 13 years, the highest Shiller PE Ratio of Akamai Technologies was 67.35. The lowest was 24.59. And the median was 47.17.


Akamai Technologies E10 Historical Data

The historical data trend for Akamai Technologies's E10 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 E10 Chart

Akamai Technologies Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.63 2.16 2.55 2.67 3.01

Akamai Technologies Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
E10 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 2.67 2.84 2.89 2.76 3.01

Competitive Comparison of Akamai Technologies's E10

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

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

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



Akamai Technologies E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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.

For example, Akamai Technologies's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=0.869/133.1571*133.1571
=0.869

Current CPI (Dec. 2024) = 133.1571.

Akamai Technologies Quarterly Data

per share eps CPI Adj_EPS
201503 0.397 99.621 0.531
201506 0.330 100.684 0.436
201509 0.437 100.392 0.580
201512 0.450 99.792 0.600
201603 0.377 100.470 0.500
201606 0.374 101.688 0.490
201609 0.383 101.861 0.501
201612 0.493 101.863 0.644
201703 0.402 102.862 0.520
201706 0.294 103.349 0.379
201709 0.310 104.136 0.396
201712 0.093 104.011 0.119
201803 0.251 105.290 0.317
201806 0.214 106.317 0.268
201809 0.548 106.507 0.685
201812 0.501 105.998 0.629
201903 0.575 107.251 0.714
201906 0.611 108.070 0.753
201909 0.763 108.329 0.938
201912 0.657 108.420 0.807
202003 0.679 108.902 0.830
202006 0.870 108.767 1.065
202009 0.807 109.815 0.979
202012 0.559 109.897 0.677
202103 0.790 111.754 0.941
202106 0.780 114.631 0.906
202109 0.918 115.734 1.056
202112 0.858 117.630 0.971
202203 0.745 121.301 0.818
202206 0.804 125.017 0.856
202209 0.788 125.227 0.838
202212 0.774 125.222 0.823
202303 0.579 127.348 0.605
202306 0.775 128.729 0.802
202309 0.974 129.860 0.999
202312 0.945 129.419 0.972
202403 1.021 131.776 1.032
202406 0.799 132.554 0.803
202409 0.342 133.029 0.342
202412 0.869 133.157 0.869

Add all the adjusted EPS together and divide 10 will get our e10.


Akamai Technologies  (HAM:AK3) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Akamai Technologies's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=74.50/3.01
=24.75

* 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.

During the past 13 years, the highest Shiller P/E Ratio of Akamai Technologies was 67.35. The lowest was 24.59. And the median was 47.17.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


Akamai Technologies E10 Related Terms

Thank you for viewing the detailed overview of Akamai Technologies's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


Akamai Technologies Business Description

Address
145 Broadway, Cambridge, MA, USA, 02142
Akamai operates a content delivery network, 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. The firm also offers security and cloud computing for its customers, and those businesses have grown to be bigger than the legacy CDN.

Akamai Technologies Headlines

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