Discounted Cash Flow (DCF) Analysis Levered

Akamai Technologies, Inc. (AKAM)

$114.41

-0.52 (-0.45%)
All numbers are in Millions, Currency in USD
Stock DCF: 95.46 | 114.41 | overvalue

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 2,714.472,893.623,198.153,461.223,616.653,886.464,176.394,487.954,822.765,182.54
Revenue (%)
Operating Cash Flow 1,008.331,058.301,2151,404.561,274.681,457.701,566.441,683.301,808.881,943.82
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 602.59496.23483.13859.33816.37791.71850.77914.24982.441,055.73

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 2,714.472,893.623,198.153,461.223,616.653,886.464,176.394,487.954,822.765,182.54
Operating Cash Flow 1,008.331,058.301,2151,404.561,274.681,457.701,566.441,683.301,808.881,943.82
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 602.59496.23483.13859.33816.37791.71850.77914.24982.441,055.73
WACC
PV LFCF 737.78738.81739.84740.88741.91
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