Discounted Cash Flow (DCF) Analysis Levered
Akamai Technologies, Inc. (AKAM)
$88.44
-0.89 (-1.00%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 2,503 | 2,714.47 | 2,893.62 | 3,198.15 | 3,461.22 | 3,753.68 | 4,070.86 | 4,414.83 | 4,787.87 | 5,192.43 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 800.98 | 1,008.33 | 1,058.30 | 1,215 | 1,404.56 | 1,383.55 | 1,500.45 | 1,627.23 | 1,764.73 | 1,913.84 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -414.78 | -405.74 | -562.08 | -731.87 | -545.23 | -672.51 | -729.34 | -790.96 | -857.80 | -930.28 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 386.20 | 602.59 | 496.23 | 483.13 | 859.33 | 711.04 | 771.12 | 836.27 | 906.93 | 983.57 |
Weighted Average Cost Of Capital
| Share price | $ 88.44 |
|---|---|
| Beta | 0.739 |
| Diluted Shares Outstanding | 165.80 |
| Cost of Debt | |
| Tax Rate | 10.52 |
| After-tax Cost of Debt | 2.26% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.105 |
| Total Debt | 2,858.94 |
| Total Equity | 14,663.71 |
| Total Capital | 17,522.64 |
| Debt Weighting | 16.32 |
| Equity Weighting | 83.68 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 2,503 | 2,714.47 | 2,893.62 | 3,198.15 | 3,461.22 | 3,753.68 | 4,070.86 | 4,414.83 | 4,787.87 | 5,192.43 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 800.98 | 1,008.33 | 1,058.30 | 1,215 | 1,404.56 | 1,383.55 | 1,500.45 | 1,627.23 | 1,764.73 | 1,913.84 |
| Capital Expenditure | -414.78 | -405.74 | -562.08 | -731.87 | -545.23 | -672.51 | -729.34 | -790.96 | -857.80 | -930.28 |
| Free Cash Flow | 386.20 | 602.59 | 496.23 | 483.13 | 859.33 | 711.04 | 771.12 | 836.27 | 906.93 | 983.57 |
| WACC | ||||||||||
| PV LFCF | 492.55 | 502.46 | 512.57 | 522.89 | 533.41 | |||||
| SUM PV LFCF | 3,481.51 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.31 |
| Free cash flow (t + 1) | 1,003.24 |
| Terminal Value | 23,276.99 |
| Present Value of Terminal Value | 17,141.79 |
Intrinsic Value
| Enterprise Value | 20,623.30 |
|---|---|
| Net Debt | 2,322.21 |
| Equity Value | 18,301.09 |
| Shares Outstanding | 165.80 |
| Equity Value Per Share | 110.38 |