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The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-08-06), Akamai Technologies's 1-Year Sharpe Ratio is 0.88.
Akamai Technologies (NAS:AKAM) 1-Year Sharpe Ratio Explanation
The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.
Akamai Technologies 1-Year Sharpe Ratio Related Terms
AKAM vs TOST, GEN, RBRK: 1-Year Sharpe Ratio Comparison
For the Software - Infrastructure subindustry, Akamai Technologies's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Software Industry
For the Software industry and Technology sector, Akamai Technologies's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Akamai Technologies's 1-Year Sharpe Ratio falls into.
Akamai Technologies 1-Year Sharpe Ratio Calculation
The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.
Akamai Technologies (AKAM) has a 1-Year Sharpe Ratio of 0.88 as of Aug. 06, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Akamai Technologies and its competitors.
Is Akamai Technologies' 1-Year Sharpe Ratio too high?
Akamai Technologies' current 1-Year Sharpe Ratio is 0.88. 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' 1-Year Sharpe Ratio compare to TOST and GEN?
Akamai Technologies' 1-Year Sharpe Ratio of 0.88 can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Software company?
A good 1-Year Sharpe Ratio depends on the Software industry context. However, 1-Year Sharpe Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Akamai Technologies and its competitors. Akamai Technologies's current 1-Year Sharpe Ratio is 0.88. 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 $112.51, compared to a current price of $116.60 — trading 3.6% above its estimated fair value. The current 1-Year Sharpe Ratio is 0.88. 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 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Akamai Technologies (AKAM), the current 1-Year Sharpe Ratio is 0.88 as of Aug. 06, 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 $116.60 is trading 3.6% above its estimated GF Value™ of $112.51.
GuruFocus considers Akamai Technologies to be Fairly Valued.
Key valuation signals for AKAM:
1-Year Sharpe Ratio: 0.88
GF Value™: $112.51 vs. price of $116.60 (3.6% above fair value)
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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