Using the PEG framework with analyst consensus forward EPS growth of 25.0%, Akamai Technologies, Inc. has a fair value of $171.56 based on NTM EPS (FY2026) of $6.86. The current PEG ratio is 0.55.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
Growth above 25% is capped — hypergrowth may not be sustainable long-term.
| EPS Growth RateForward | 30.9% |
| Adjusted Growth (clamped 8–25%)Clamped | 25.0% |
| Fair P/E | 25.0x |
| NTM EPS (FY2026) | $6.86 |
| Fair Value | $171.56 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $3.07 | — | — |
| FY2026E | $6.86 | +123.5% | 18 |
| FY2027E | $7.56 | +10.2% | 17 |
| FY2028E | $8.66 | +14.5% | 9 |
| FY2029E | $9.93 | +14.6% | 4 |
| FY2030E | $11.81 | +19.0% | 4 |
5Y Forward EPS CAGR: 30.9%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $651.6M | $3.93 | — |
| FY2022 | $523.7M | $3.26 | -17.0% |
| FY2023 | $547.6M | $3.52 | +8.0% |
| FY2024 | $504.9M | $3.27 | -7.1% |
| FY2025 | $452.0M | $3.07 | -6.1% |
4Y Historical EPS CAGR: -6.0%