Discounted Cash Flow (DCF) Analysis Unlevered
Akamai Technologies, Inc. (AKAM)
$76.37
+0.32 (+0.42%)
All numbers are in Millions, Currency in USD
Operating Data
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 (%) | ||||||||||
EBITDA | 820.81 | 1,021.42 | 1,150.49 | 1,337.18 | 1,254.22 | 1,358.88 | 1,460.26 | 1,569.19 | 1,686.26 | 1,812.05 |
EBITDA (%) | ||||||||||
EBIT | 386.29 | 580.75 | 672.10 | 786.54 | 661.46 | 748.76 | 804.62 | 864.65 | 929.15 | 998.47 |
EBIT (%) | ||||||||||
Depreciation | 434.52 | 440.67 | 478.39 | 550.63 | 592.75 | 610.12 | 655.64 | 704.55 | 757.11 | 813.59 |
Depreciation (%) |
Balance Sheet Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Total Cash | 1,892.10 | 1,536.99 | 1,098.07 | 1,078.19 | 1,105.32 | 1,701.24 | 1,828.16 | 1,964.54 | 2,111.10 | 2,268.59 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 479.89 | 551.94 | 660.05 | 675.93 | 679.21 | 743.87 | 799.37 | 859 | 923.08 | 991.94 |
Account Receivables (%) | ||||||||||
Inventories | - | - | - | - | - | - | - | - | - | - |
Inventories (%) | ||||||||||
Accounts Payable | 99.09 | 138.95 | 118.55 | 109.93 | 145.42 | 150.45 | 161.67 | 173.74 | 186.70 | 200.62 |
Accounts Payable (%) | ||||||||||
Capital Expenditure | -405.74 | -562.08 | -731.87 | -545.23 | -458.30 | -665.99 | -715.67 | -769.06 | -826.44 | -888.09 |
Capital Expenditure (%) |
Weighted Average Cost Of Capital
Share price | $ 76.37 |
---|---|
Beta | 0.784 |
Diluted Shares Outstanding | 160.47 |
Cost of Debt | |
Tax Rate | 20.41 |
After-tax Cost of Debt | 0.28% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 7.230 |
Total Debt | 3,174.62 |
Total Equity | 12,254.86 |
Total Capital | 15,429.48 |
Debt Weighting | 20.58 |
Equity Weighting | 79.42 |
Wacc |
Build Up Free Cash
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 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 820.81 | 1,021.42 | 1,150.49 | 1,337.18 | 1,254.22 | 1,358.88 | 1,460.26 | 1,569.19 | 1,686.26 | 1,812.05 |
EBIT | 386.29 | 580.75 | 672.10 | 786.54 | 661.46 | 748.76 | 804.62 | 864.65 | 929.15 | 998.47 |
Tax Rate | 13.03% | 10.22% | 9.58% | 10.52% | 20.41% | 12.75% | 12.75% | 12.75% | 12.75% | 12.75% |
EBIAT | 335.94 | 521.37 | 607.70 | 703.83 | 526.43 | 653.27 | 702 | 754.37 | 810.65 | 871.12 |
Depreciation | 434.52 | 440.67 | 478.39 | 550.63 | 592.75 | 610.12 | 655.64 | 704.55 | 757.11 | 813.59 |
Accounts Receivable | - | -72.05 | -108.11 | -15.87 | -3.28 | -64.67 | -55.49 | -59.63 | -64.08 | -68.86 |
Inventories | - | - | - | - | - | - | - | - | - | - |
Accounts Payable | - | 39.86 | -20.40 | -8.62 | 35.49 | 5.03 | 11.22 | 12.06 | 12.96 | 13.93 |
Capital Expenditure | -405.74 | -562.08 | -731.87 | -545.23 | -458.30 | -665.99 | -715.67 | -769.06 | -826.44 | -888.09 |
UFCF | 364.72 | 367.77 | 225.71 | 684.74 | 693.09 | 537.76 | 597.69 | 642.28 | 690.20 | 741.69 |
WACC | ||||||||||
PV UFCF | 508.28 | 533.96 | 542.34 | 550.85 | 559.49 | |||||
SUM PV UFCF | 2,694.91 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 5.80 |
Free cash flow (t + 1) | 756.52 |
Terminal Value | 19,908.41 |
Present Value of Terminal Value | 15,017.87 |
Intrinsic Value
Enterprise Value | 17,712.78 |
---|---|
Net Debt | 2,632.28 |
Equity Value | 15,080.50 |
Shares Outstanding | 160.47 |
Equity Value Per Share | 93.98 |