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Akamai Technologies (Akamai Technologies) Cyclically Adjusted Price-to-FCF : 26.62 (As of Apr. 28, 2024)


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What is Akamai Technologies Cyclically Adjusted Price-to-FCF?

As of today (2024-04-28), Akamai Technologies's current share price is $101.68. Akamai Technologies's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $3.82. Akamai Technologies's Cyclically Adjusted Price-to-FCF for today is 26.62.

The historical rank and industry rank for Akamai Technologies's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

AKAM' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 20.39   Med: 37.77   Max: 61.87
Current: 26.59

During the past years, Akamai Technologies's highest Cyclically Adjusted Price-to-FCF was 61.87. The lowest was 20.39. And the median was 37.77.

AKAM's Cyclically Adjusted Price-to-FCF is ranked better than
52.69% of 670 companies
in the Software industry
Industry Median: 28.305 vs AKAM: 26.59

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Akamai Technologies's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $1.626. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $3.82 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Akamai Technologies Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Akamai Technologies's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Akamai Technologies Cyclically Adjusted Price-to-FCF Chart

Akamai Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.24 41.79 38.53 23.90 30.94

Akamai Technologies Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.90 21.92 24.37 28.38 30.94

Competitive Comparison of Akamai Technologies's Cyclically Adjusted Price-to-FCF

For the Software - Infrastructure subindustry, Akamai Technologies's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Akamai Technologies's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Akamai Technologies's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Akamai Technologies's Cyclically Adjusted Price-to-FCF falls into.



Akamai Technologies Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Akamai Technologies's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=101.68/3.82
=26.62

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Akamai Technologies's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Akamai Technologies's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=1.626/129.4194*129.4194
=1.626

Current CPI (Dec. 2023) = 129.4194.

Akamai Technologies Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.028 99.695 0.036
201406 0.717 100.560 0.923
201409 0.561 100.428 0.723
201412 0.571 99.070 0.746
201503 -0.206 99.621 -0.268
201506 0.930 100.684 1.195
201509 0.275 100.392 0.355
201512 0.936 99.792 1.214
201603 0.614 100.470 0.791
201606 0.942 101.688 1.199
201609 0.979 101.861 1.244
201612 0.618 101.863 0.785
201703 0.294 102.862 0.370
201706 0.736 103.349 0.922
201709 0.680 104.136 0.845
201712 0.531 104.011 0.661
201803 0.459 105.290 0.564
201806 0.761 106.317 0.926
201809 1.333 106.507 1.620
201812 1.026 105.998 1.253
201903 0.112 107.251 0.135
201906 1.119 108.070 1.340
201909 0.880 108.329 1.051
201912 0.906 108.420 1.081
202003 0.048 108.902 0.057
202006 1.083 108.767 1.289
202009 1.040 109.815 1.226
202012 0.745 109.897 0.877
202103 0.513 111.754 0.594
202106 1.345 114.631 1.519
202109 1.644 115.734 1.838
202112 1.681 117.630 1.849
202203 0.557 121.301 0.594
202206 1.381 125.017 1.430
202209 1.706 125.227 1.763
202212 1.465 125.222 1.514
202303 0.072 127.348 0.073
202306 1.238 128.729 1.245
202309 1.044 129.860 1.040
202312 1.626 129.419 1.626

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Akamai Technologies  (NAS:AKAM) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Akamai Technologies Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Akamai Technologies's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Akamai Technologies (Akamai Technologies) Business Description

Industry
Traded in Other Exchanges
Address
145 Broadway, Cambridge, MA, USA, 02142
Akamai operates a content delivery network, or CDN, which entails locating servers at the edges of networks so its customers, which store content on Akamai servers, can reach their own customers faster, more securely, and with better quality. Akamai has over 325,000 servers distributed over 4,100 points of presence in more than 1,000 cities worldwide. Its customers generally include media companies, which stream video content or make video games available for download, and other enterprises that run interactive or high-traffic websites, such as e-commerce firms and financial institutions. Akamai also has a significant security business, which is integrated with its core delivery and computing businesses to protect customers from cyberthreats.
Executives
Paul C Joseph officer: EVP - Global Sales C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Kim Salem-jackson officer: EVP, Chief Marketing Officer C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Aaron Ahola officer: SVP & General Counsel C/O AKAMAI TECHNOLOGIES, INC., 150 BROADWAY, CAMBRIDGE MA 02142
Robert Blumofe officer: EVP Platform C/O AKAMAI TECHNOLOGIES, INC., 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Madhu Ranganathan director 760 MARKET STREET, 4TH FLOOR, SAN FRANCISCO CA 94102
Edward J Mcgowan officer: Chief Financial Officer C/O AKAMAI TECHNOLOGIES, INC., 150 BROADWAY, CAMBRIDGE MA 02142
Anthony P Williams officer: EVP and CHRO C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Adam Karon officer: EVP & GM Media Division C/O AKAMAI TECHNOLOGIES, INC., 150 BROADWAY, CAMBRIDGE MA 02142
Mani Sundaram officer: EVP GSS and CIO C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
F Thomson Leighton director, officer: Chief Scientist 500 TECHNOLOGY SQUARE, FIFTH FLOOR, CAMBRIDGE MA 02139
Verwaayen Bernardus Johannes Maria director 55 GLENLAKE PARKWAY NE, ATLANTA GA 30328
Rick M Mcconnell officer: EVP - Products and Development LATITUDE, 2121 TASMAN DRIVE, SANTA CLARA CA 4089887256
Monte E Ford director C/O AKAMAI TECHNOLOGIES, INC., 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Laura Howell officer: VP, Chief Accounting Officer C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Jill A Greenthal director MARTHA STEWART LIVING OMNIMEDIA INC, 11 WEST 42ND STREET 25TH FLOOR, NEW YORK NY 10036