Latest Ratios: P/E Ratio 38.5x · EV/EBITDA 17.3x · ROE 9.2%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $17.2B | $12.8B | $14.8B | $18.4B | $13.5B | $19.4B | $17.3B | $14.2B | $10.3B | $11.2B | $11.8B |
| Enterprise Value | $23.2B | $18.8B | $18.9B | $22.4B | $16.2B | $21.7B | $19.8B | $16.5B | $10.9B | $11.6B | $12.1B |
| P/E Ratio → | 38.55 | 28.42 | 29.25 | 33.62 | 25.86 | 29.78 | 31.15 | 29.79 | 34.70 | 50.42 | 36.64 |
| P/S Ratio | 4.09 | 3.05 | 3.70 | 4.82 | 3.74 | 5.61 | 5.42 | 4.91 | 3.81 | 4.51 | 5.00 |
| P/B Ratio | 3.50 | 2.58 | 3.03 | 4.00 | 3.10 | 4.28 | 4.08 | 3.89 | 3.24 | 3.39 | 3.64 |
| P/FCF | 24.60 | 18.34 | 17.70 | 29.74 | 16.57 | 22.58 | 35.90 | 28.65 | 17.15 | 29.09 | 21.15 |
| P/OCF | 11.33 | 8.45 | 9.72 | 13.64 | 10.61 | 13.82 | 14.28 | 13.43 | 10.25 | 14.02 | 13.48 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.47 | 4.73 | 5.89 | 4.47 | 6.28 | 6.18 | 5.70 | 4.00 | 4.65 | 5.14 |
| EV / EBITDA | 17.34 | 14.07 | 15.98 | 18.57 | 12.73 | 16.29 | 17.39 | 16.67 | 13.62 | 16.87 | 15.07 |
| EV / EBIT | 36.90 | 29.70 | 30.74 | 33.48 | 24.15 | 27.14 | 28.85 | 28.35 | 28.11 | 34.78 | 24.88 |
| EV / FCF | — | 26.89 | 22.64 | 36.28 | 19.79 | 25.28 | 40.92 | 33.24 | 18.02 | 29.99 | 21.72 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 54.7% | 54.7% | 59.4% | 60.4% | 61.7% | 63.3% | 64.6% | 65.9% | 64.9% | 64.8% | 65.5% |
| Operating Margin | 14.9% | 14.9% | 13.4% | 16.7% | 18.7% | 22.6% | 20.6% | 19.0% | 13.4% | 12.6% | 19.9% |
| Net Profit Margin | 10.7% | 10.7% | 12.7% | 14.4% | 14.5% | 18.8% | 17.4% | 16.5% | 11.0% | 8.9% | 13.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.2% | 9.2% | 10.7% | 12.2% | 11.8% | 14.8% | 14.1% | 14.0% | 9.2% | 6.8% | 10.1% |
| ROA | 4.1% | 4.1% | 5.0% | 6.0% | 6.4% | 8.2% | 7.5% | 7.7% | 5.9% | 5.0% | 7.5% |
| ROIC | 4.7% | 4.7% | 4.5% | 6.1% | 7.3% | 8.7% | 7.8% | 8.5% | 7.4% | 6.5% | 10.0% |
| ROCE | 6.7% | 6.7% | 6.2% | 7.7% | 9.1% | 10.9% | 9.9% | 10.4% | 8.6% | 7.7% | 11.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.39 | 1.39 | 0.95 | 0.99 | 0.73 | 0.63 | 0.65 | 0.73 | 0.49 | 0.20 | 0.20 |
| Debt / EBITDA | 5.17 | 5.17 | 3.92 | 3.75 | 2.50 | 2.14 | 2.44 | 2.70 | 1.96 | 0.97 | 0.80 |
| Net Debt / Equity | — | 1.20 | 0.84 | 0.88 | 0.60 | 0.51 | 0.57 | 0.62 | 0.16 | 0.11 | 0.10 |
| Net Debt / EBITDA | 4.47 | 4.47 | 3.48 | 3.35 | 2.07 | 1.74 | 2.13 | 2.30 | 0.66 | 0.51 | 0.39 |
| Debt / FCF | — | 8.55 | 4.94 | 6.54 | 3.22 | 2.70 | 5.02 | 4.59 | 0.87 | 0.91 | 0.57 |
| Interest Coverage | 20.58 | 20.58 | 22.65 | 37.85 | 60.30 | 11.07 | 9.91 | 11.79 | 8.94 | 17.68 | 26.02 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.29 | 2.29 | 1.23 | 2.16 | 2.41 | 2.43 | 2.54 | 3.22 | 2.09 | 2.90 | 3.50 |
| Quick Ratio | 2.29 | 2.29 | 1.23 | 2.16 | 2.41 | 2.43 | 2.54 | 3.22 | 2.09 | 2.90 | 3.50 |
| Cash Ratio | 1.23 | 1.23 | 0.76 | 1.03 | 1.35 | 1.36 | 1.45 | 2.22 | 1.56 | 1.53 | 2.23 |
| Asset Turnover | — | 0.37 | 0.38 | 0.39 | 0.44 | 0.43 | 0.41 | 0.41 | 0.50 | 0.54 | 0.54 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 68.84 | 66.55 | 69.35 | 68.55 | 71.28 | 75.33 | 69.62 | 64.53 | 67.67 | 57.30 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.6% | 3.5% | 3.4% | 3.0% | 3.9% | 3.4% | 3.2% | 3.4% | 2.9% | 2.0% | 2.7% |
| FCF Yield | 4.1% | 5.5% | 5.6% | 3.4% | 6.0% | 4.4% | 2.8% | 3.5% | 5.8% | 3.4% | 4.7% |
| Buyback Yield | 4.6% | 6.2% | 3.8% | 3.6% | 4.5% | 2.7% | 1.1% | 2.4% | 7.3% | 3.2% | 3.2% |
| Total Shareholder Yield | 4.6% | 6.2% | 3.8% | 3.6% | 4.5% | 2.7% | 1.1% | 2.4% | 7.3% | 3.2% | 3.2% |
| Shares Outstanding | — | $147M | $154M | $155M | $160M | $166M | $165M | $165M | $169M | $173M | $176M |
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying AKAM stock.
Akamai Technologies, Inc.'s current P/E ratio is 38.5x. The historical average is 39.7x. This places it at the 77th percentile of its historical range.
Akamai Technologies, Inc.'s current EV/EBITDA is 17.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 20.8x.
Akamai Technologies, Inc.'s return on equity (ROE) is 9.2%. The historical average is 0.9%.
Based on historical data, Akamai Technologies, Inc. is trading at a P/E of 38.5x. This is at the 77th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Akamai Technologies, Inc. has 54.7% gross margin and 14.9% operating margin. Operating margin between 10-20% is typical for established companies.
Akamai Technologies, Inc.'s Debt/EBITDA ratio is 5.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
CDN commoditization and price compression
Metrics are mathematically derived from official filings.
Margin Compression Reflects Mix Shift
Gross margin fell from 60.0% in Q1 2024 to 55.8% in Q2 2026, a 420 bps decline, while operating margin dropped to 7.3%, indicating rising costs and a shift toward lower-margin compute services.
The 420 basis point contraction in gross margin over ten quarters suggests that the revenue mix is increasingly weighted toward compute and security offerings that carry higher cost structures than legacy delivery. Operating margin volatility, with a spike to 15.7% in Q3 2025 followed by a reversion to 7.3% in Q2 2026, indicates that the company has not yet achieved sustainable operating leverage. The gap between gross and operating margins widened, implying that SG&A and R&D expenses are growing faster than revenue, which may reflect investments in the compute pivot that have yet to pay off.
Return on Capital Decays Amid Expansion
ROIC fell from 1.4% in Q1 2024 to 0.5% in Q2 2026, while ROE declined from 3.8% to 1.6%, indicating that the capital base is expanding faster than operating income.
The decline in ROIC and ROE over the period suggests that the company is investing heavily in infrastructure and acquisitions, but these investments are not yet generating proportional returns. The increase in total assets from $10.5B to $15.1B, largely debt-financed, has diluted returns on capital. This may indicate that the compute expansion is in an investment phase, but investors should monitor whether these returns inflect upward as utilization improves.
Working Capital Efficiency Holds Steady
Asset turnover remained flat at 0.10 over ten quarters, while DSO rose from 66 to 76 days, suggesting stable but not improving efficiency in converting assets to revenue.
The stable asset turnover of 0.10 indicates that the company's asset base is growing in line with revenue, but the increase in DSO from 66 to 76 days suggests that receivables are taking longer to collect, which could signal loosening payment terms or a shift in customer mix. The absence of DIO data limits a full cash conversion cycle analysis, but the stable asset turnover and modest DSO increase imply that working capital management is not a primary driver of cash flow variability.
Leverage Surges on Debt-Financed Acquisition
Debt-to-equity jumped from 1.20 in Q1 2026 to 1.97 in Q2 2026, while interest coverage fell from 13.78 to 12.02, indicating increased financial risk from the acquisition.
The sharp increase in leverage, with total debt reaching $9.3B, appears tied to the Linode acquisition, which has significantly raised the company's financial risk profile. Interest coverage remains comfortable at 12.02, but the trend is downward, and the D/EBITDA ratio of 35.13 in Q2 2026 is elevated, suggesting that EBITDA may be temporarily depressed. Investors should monitor whether the acquired assets generate sufficient cash flow to service this debt without straining the balance sheet.
Liquidity Buffer Adequate but Debt Overhang Looms
Current ratio improved to 1.64 in Q2 2026 from 1.32 in Q2 2024, but with $9.3B in total debt and only $1.5B in cash, liquidity remains a concern.
The current ratio of 1.64 indicates that short-term assets cover short-term liabilities, but the absolute level of debt relative to cash suggests that the company could face refinancing risk if credit markets tighten. The quick ratio equals the current ratio, implying that inventory is not a significant factor, which is typical for a service-based business. The liquidity position appears adequate for near-term obligations, but the debt overhang warrants close monitoring.
Misapplied Metric: EV/EBITDA
EV/EBITDA of 18.07 may mislead investors because Akamai's heavy capex and stock-based compensation are excluded, making the metric appear more attractive than cash-based valuations suggest.
EV/EBITDA is commonly used for capital-intensive tech companies, but for Akamai, it obscures the significant cash outflows for network equipment and the dilutive impact of stock-based compensation. The P/FCF ratio of 25.99 provides a more conservative view of valuation, as it accounts for capex and working capital changes. Investors should adjust EBITDA for stock-based compensation and consider the capital intensity of the compute expansion to avoid overstating the company's earnings power.