Discounted Cash Flow (DCF) Analysis Levered

Akamai Technologies, Inc. (AKAM)

$88.44

-0.89 (-1.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 110.38 | 88.44 | undervalue

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 2,5032,714.472,893.623,198.153,461.223,753.684,070.864,414.834,787.875,192.43
Revenue (%)
Operating Cash Flow 800.981,008.331,058.301,2151,404.561,383.551,500.451,627.231,764.731,913.84
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 386.20602.59496.23483.13859.33711.04771.12836.27906.93983.57

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 2,5032,714.472,893.623,198.153,461.223,753.684,070.864,414.834,787.875,192.43
Operating Cash Flow 800.981,008.331,058.301,2151,404.561,383.551,500.451,627.231,764.731,913.84
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 386.20602.59496.23483.13859.33711.04771.12836.27906.93983.57
WACC
PV LFCF 492.55502.46512.57522.89533.41
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