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 |