AKAM — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($97.64)
DCF	$49.72	-49.1%
Graham Number	$48.74	-50.1%
Reverse DCF	—	implied g: 15.4%
DDM	—	—
EV/EBITDA	$97.64	-0.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $578.66M

Near-term growth (yrs 1–5)(%)Rev: 7.4% / EPS: -37.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 5.95%

Computed WACC: 5.95%

Cost of equity (Re)8.17%(Rf 4.30% + β 0.70 × ERP 5.50%)

Cost of debt (Rd)0.54%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)71.37%

Debt weight (D/V)28.63%

Results

Intrinsic Value / share$123.95

Current Price$97.64

Upside / Downside+26.9%

Net Debt (used)$4.49B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	-0.6%	3.4%	7.4%	11.4%	15.4%
7.0%	$51.52	$67.94	$87.00	$108.99	$134.26
8.0%	$36.51	$49.69	$64.96	$82.56	$102.76
9.0%	$26.12	$37.06	$49.72	$64.30	$81.01
10.0%	$18.51	$27.82	$38.57	$50.94	$65.11
11.0%	$12.69	$20.76	$30.06	$40.76	$52.99

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $3.07

Book Value / share($)Yahoo: $34.40

Results

Graham Number$48.74

Current Price$97.64

Margin of Safety-50.1%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 5.95%

Terminal growth rate(%)

Computed WACC: 5.95%

Cost of equity (Re)8.17%(Rf 4.30% + β 0.70 × ERP 5.50%)

Cost of debt (Rd)0.54%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)71.37%

Debt weight (D/V)28.63%

Results

Current Price$97.64

Implied Near-term FCF Growth4.5%

Historical Revenue Growth7.4%

Historical Earnings Growth-37.4%

Base FCF (TTM)$578.66M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$97.64

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $1.18B

Target EV/EBITDA multipleCurrent: 15.8×

Net Debt($B)Default: $4.49B

Results

Implied Equity Value / share$97.64

Current Price$97.64

Upside / Downside-0.0%

Implied EV$18.64B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$2.49B	$3.49B	$4.49B	$5.49B	$6.49B
11.8x	$78.84	$71.94	$65.04	$58.14	$51.23
13.8x	$95.14	$88.24	$81.34	$74.44	$67.53
15.8x	$111.44	$104.54	$97.64	$90.74	$83.83
17.8x	$127.74	$120.84	$113.94	$107.04	$100.13
19.8x	$144.04	$137.14	$130.24	$123.34	$116.44

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