Is Akamai Technologies, Inc. (AKAM) Undervalued?
Based on the current stock price of $88.42 and a P/E ratio of 25.93,Akamai Technologies, Inc. has a PEG ratio of 3.01.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 3.01, AKAM appears to be potentially overvalued relative to its growth rate of 8.62%.
Based on a PEG ratio of 3.01 (adjusted for dividends).
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How we analyzed AKAM
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 25.93and dividing it by the annual growth rate of 8.62%.
PEG = 25.93 (P/E) ÷ 8.62 (Growth) = 3.01
Frequently Asked Questions about AKAM
What is the current PEG Ratio for Akamai Technologies, Inc. (AKAM)?+
The current PEG Ratio for Akamai Technologies, Inc. is 3.01. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is AKAM stock undervalued right now?+
Based on the PEG ratio of 3.01, Akamai Technologies, Inc. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for AKAM?+
The PEGY ratio for Akamai Technologies, Inc. is 3.01. This metric accounts for dividend yield (0.00%), providing a more complete valuation picture.