Akamai Technologies, Inc. ($AKAM) Possible Buy to $85 Confident Investor Rating: Good
I am currently going through my Watch List to ensure that each company still deserves to be on the list. Because of the number of companies on my list, I am going to try to knock out 2 per weekday.
Company name | Akamai Technologies, Inc. |
Stock ticker | AKAM |
Live stock price | [stckqut]AKAM[/stckqut] |
P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
Employee productivity | Good |
Sales growth | Good |
EPS growth | Good |
P/E growth | Good |
EBIT growth | Good |
ANALYSIS
Confident Investor Rating | Good |
Target stock price (TWCA growth scenario) | $90.46 |
Target stock price (averages with growth) | $131.31 |
Target stock price (averages with no growth) | $110.11 |
Target stock price (manual assumptions) | $76.06 |
The following company description is from Google Finance: http://www.google.com/finance?q=akam
Akamai Technologies, Inc. (Akamai) provides content delivery and cloud infrastructure services for the delivery of content and applications over the Internet. The Company’s solutions range from delivery of conventional content on Websites, to tools that support the delivery and operation of cloud-based applications, to live and on-demand streaming video capabilities all designed to help its customers interact with people accessing the Internet from myriad devices and locations around the world. The Company offers five solutions designed to meet the online business needs of its customers: Terra, Aqua, Sola, Kona and Aura. In February 2014, Akamai Technologies Inc completed the acquisition of Prolexic Technologies Inc.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Akamai Technologies, Inc.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $58.39
Growth: 0.16
Current EPS (TTM): $1.62
P/E: 36
Future EPS Calc: $3.4
Future Stock Price Calc: $122.49
Target stock price: $76.05
I hope that this makes you a better investor. [/s2If]