Discounted Cash Flow (DCF) Analysis Levered
Akamai Technologies, Inc. (AKAM)
$114.41
-0.52 (-0.45%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 2,714.47 | 2,893.62 | 3,198.15 | 3,461.22 | 3,616.65 | 3,886.46 | 4,176.39 | 4,487.95 | 4,822.76 | 5,182.54 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 1,008.33 | 1,058.30 | 1,215 | 1,404.56 | 1,274.68 | 1,457.70 | 1,566.44 | 1,683.30 | 1,808.88 | 1,943.82 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -405.74 | -562.08 | -731.87 | -545.23 | -458.30 | -665.99 | -715.67 | -769.06 | -826.44 | -888.09 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 602.59 | 496.23 | 483.13 | 859.33 | 816.37 | 791.71 | 850.77 | 914.24 | 982.44 | 1,055.73 |
Weighted Average Cost Of Capital
Share price | $ 114.41 |
---|---|
Beta | 0.792 |
Diluted Shares Outstanding | 160.47 |
Cost of Debt | |
Tax Rate | 20.41 |
After-tax Cost of Debt | 3.39% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 7.993 |
Total Debt | 3,174.62 |
Total Equity | 18,359.03 |
Total Capital | 21,533.65 |
Debt Weighting | 14.74 |
Equity Weighting | 85.26 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 2,714.47 | 2,893.62 | 3,198.15 | 3,461.22 | 3,616.65 | 3,886.46 | 4,176.39 | 4,487.95 | 4,822.76 | 5,182.54 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,008.33 | 1,058.30 | 1,215 | 1,404.56 | 1,274.68 | 1,457.70 | 1,566.44 | 1,683.30 | 1,808.88 | 1,943.82 |
Capital Expenditure | -405.74 | -562.08 | -731.87 | -545.23 | -458.30 | -665.99 | -715.67 | -769.06 | -826.44 | -888.09 |
Free Cash Flow | 602.59 | 496.23 | 483.13 | 859.33 | 816.37 | 791.71 | 850.77 | 914.24 | 982.44 | 1,055.73 |
WACC | ||||||||||
PV LFCF | 737.78 | 738.81 | 739.84 | 740.88 | 741.91 | |||||
SUM PV LFCF | 3,699.21 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.31 |
Free cash flow (t + 1) | 1,076.85 |
Terminal Value | 20,279.57 |
Present Value of Terminal Value | 14,251.41 |
Intrinsic Value
Enterprise Value | 17,950.62 |
---|---|
Net Debt | 2,632.28 |
Equity Value | 15,318.34 |
Shares Outstanding | 160.47 |
Equity Value Per Share | 95.46 |