Discounted Cash Flow

Akamai Technologies Inc.

AKAM · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $2.3b $316.1m $685.3m 13.5% $1.81
2017 $2.5b (7.0%) $218.3m (-30.9%) $546.8m (-20.2%) 8.7% (-35.4%) $1.27 (-29.8%)
2018 $2.7b (8.4%) $298.4m (36.7%) $790.7m (44.6%) 11.0% (26.0%) $1.78 (40.2%)
2019 $2.9b (6.6%) $478.0m (60.2%) $698.6m (-11.6%) 16.5% (50.3%) $2.94 (65.2%)
2020 $3.2b (10.5%) $557.1m (16.5%) $700.7m (0.3%) 17.4% (5.4%) $3.43 (16.7%)
2021 $3.5b (8.2%) $651.6m (17.0%) $1.1b (53.5%) 18.8% (8.1%) $4.01 (16.9%)
2022 $3.6b (4.5%) $523.7m (-19.6%) $1.0b (-3.9%) 14.5% (-23.1%) $3.29 (-18.0%)
2023 $3.8b (5.4%) $547.6m (4.6%) $890.5m (-13.8%) 14.4% (-0.8%) $3.59 (9.1%)
2024 $4.0b (4.7%) $504.9m (-7.8%) $1.1b (26.7%) 12.7% (-11.9%) $3.34 (-7.0%)
2025 $4.2b (5.4%) $452.0m (-10.5%) $1.0b (-10.4%) 10.7% (-15.1%) $3.11 (-6.9%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model