Using the industry peer median P/E multiple (trailing + forward), Akamai Technologies, Inc. (AKAM) has a fair value of $151.09 based on 8 comparable companies in the Software - Infrastructure industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Akamai Technologies, Inc.AKAM | 17,169 | 38.0x | 17.0x |
| Microsoft CorporationMSFT | 2,755,206 | 27.2x | 22.5x |
| Oracle CorporationORCL | 412,856 | 33.1x | 19.2x |
| Palo Alto Networks, Inc.PANW | 106,884 | 98.0x | 42.4x |
| Adobe Inc.ADBE | 98,604 | 14.4x | 10.2x |
| Synopsys, Inc.SNPS | 77,468 | 50.3x | 31.5x |
| Fortinet, Inc.FTNT | 59,767 | 33.1x | 27.0x |
| Block, Inc.SQ | 51,730 | 39.7x | 23.5x |
| VeriSign, Inc.VRSN | 23,294 | 28.5x | 31.4x |
| Industry Median | 33.1x | 25.3x | |
| (*) Profit after tax | 452 | 1,009 | |
| Equity Value | 14,951 | 29,477 | |
| (/) Outstanding shares | 147 | 147 | |
| Fair Price | $102 | $200 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.