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	2,714.47	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