Is Akamai Technologies, Inc. overvalued or undervalued?

As of 9 May 2025, Akamai Technologies, Inc. has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a P/E ratio of 21, an EV to EBITDA ratio of 10.73, and a Price to Book Value of 2.48. In comparison to its peers, GoDaddy, Inc. is considered expensive with a P/E of 32.65, while FactSet Research Systems, Inc. is attractive with a P/E of 31.75.
Despite the fair valuation, Akamai's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -17.11% compared to the S&P 500's 2.44%. This underperformance over various time frames highlights potential concerns, but the current valuation metrics suggest that the stock is not overvalued at this time.