ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Akamai Technologies's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.95%.
As of today (2026-06-24), Akamai Technologies's WACC % is 2.84%. Akamai Technologies's ROC % is 4.86% (calculated using TTM income statement data).
Akamai Technologies generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Akamai Technologies (NAS:AKAM) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Akamai Technologies's WACC % is 2.84%. Akamai Technologies's ROC % is 4.86% (calculated using TTM income statement data).
Akamai Technologies generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Akamai Technologies ROC % Related Terms
Akamai Technologies ROC % Historical Data
* Premium members only.
The historical data trend for Akamai Technologies's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (AKAM) has a ROC % of 3.95% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Akamai Technologies and its competitors.
Is Akamai Technologies' ROC % too high?
Akamai Technologies' current ROC % is 3.95%. The Software industry median ROC % is 3.12. Akamai Technologies' value of 3.95% is 26.6% above this industry median. Overall, Akamai Technologies has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Akamai Technologies' ROC % compare to FFIV and OKTA?
Akamai Technologies' ROC % of 3.95% can be compared against companies in the Software industry. The industry median ROC % is 3.12. Akamai Technologies' value of 3.95% is 26.6% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Software company?
The median ROC % among Software companies is 3.12, based on 2,828 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Akamai Technologies's current ROC % of 3.95% is 26.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Akamai Technologies and its competitors. For the Software industry, the median ROC % is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Akamai Technologies's current ROC % is 3.95%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Akamai Technologies stock overvalued right now?
Based on GuruFocus' analysis, Akamai Technologies (AKAM) is currently considered Fairly Valued. The stock's GF Value™ is $111.94, compared to a current price of $119.48 — trading 6.7% above its estimated fair value. The current ROC % is 3.95% and 26.6% above the Software industry median of 3.12. Akamai Technologies' overall GF Score™ is 79/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Akamai Technologies (AKAM), the current ROC % is 3.95% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Akamai Technologies (AKAM) Overvalued in 2026?
Based on GuruFocus' analysis, Akamai Technologies stock appears to be overvalued.
The current stock price of $119.48 is trading 6.7% above its estimated GF Value™ of $111.94.
GuruFocus considers Akamai Technologies to be Fairly Valued.
Key valuation signals for AKAM:
ROC %: 3.95%
GF Value™: $111.94 vs. price of $119.48 (6.7% above fair value)
Industry Position: 26.6% above the Software median
No single metric tells the full story. See the AKAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Akamai operates a content delivery network, in which customers store content on distributed servers to deliver it to their own customers more quickly. Akamai has over 350,000 servers distributed over 4,350 points of presence in more than 700 cities globally. This network supports upward of 20% of global internet traffic, generating massive amounts of data. Using data generated by the delivery network, the firm offers cybersecurity products and cloud computing services, ranging from API security to zero-trust enterprise access, which has surpassed the delivery network in revenue and importance. As of 2026, the primary focus has shifted to offering computing hardware as a service, with an emphasis on serving large language model providers such as Anthropic.
79GF Score
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