Discounted Cash Flow (DCF) Analysis Unlevered

Akamai Technologies, Inc. (AKAM)

$76.37

+0.32 (+0.42%)
All numbers are in Millions, Currency in USD
Stock DCF: 93.98 | 76.37 | undervalue

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 2,714.472,893.623,198.153,461.223,616.653,886.464,176.394,487.954,822.765,182.54
Revenue (%)
EBITDA 820.811,021.421,150.491,337.181,254.221,358.881,460.261,569.191,686.261,812.05
EBITDA (%)
EBIT 386.29580.75672.10786.54661.46748.76804.62864.65929.15998.47
EBIT (%)
Depreciation 434.52440.67478.39550.63592.75610.12655.64704.55757.11813.59
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 1,892.101,536.991,098.071,078.191,105.321,701.241,828.161,964.542,111.102,268.59
Total Cash (%)
Account Receivables 479.89551.94660.05675.93679.21743.87799.37859923.08991.94
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 99.09138.95118.55109.93145.42150.45161.67173.74186.70200.62
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 2,714.472,893.623,198.153,461.223,616.653,886.464,176.394,487.954,822.765,182.54
EBITDA 820.811,021.421,150.491,337.181,254.221,358.881,460.261,569.191,686.261,812.05
EBIT 386.29580.75672.10786.54661.46748.76804.62864.65929.15998.47
Tax Rate 13.03%10.22%9.58%10.52%20.41%12.75%12.75%12.75%12.75%12.75%
EBIAT 335.94521.37607.70703.83526.43653.27702754.37810.65871.12
Depreciation 434.52440.67478.39550.63592.75610.12655.64704.55757.11813.59
Accounts Receivable --72.05-108.11-15.87-3.28-64.67-55.49-59.63-64.08-68.86
Inventories ----------
Accounts Payable -39.86-20.40-8.6235.495.0311.2212.0612.9613.93
Capital Expenditure -405.74-562.08-731.87-545.23-458.30-665.99-715.67-769.06-826.44-888.09
UFCF 364.72367.77225.71684.74693.09537.76597.69642.28690.20741.69
WACC
PV UFCF 508.28533.96542.34550.85559.49
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