Is Akamai Technologies, Inc. overvalued or undervalued?

As of 11 September 2025, the valuation grade for Akamai Technologies, Inc. has moved from expensive to fair. The company appears to be fairly valued based on its current metrics, 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, FactSet Research Systems, Inc. has a higher P/E ratio of 28.40 and an EV to EBITDA of 18.56, indicating that Akamai is positioned more attractively within its peer group.
Despite the fair valuation, Akamai has struggled with stock performance, showing a year-to-date return of -19.40% compared to the S&P 500's 12.22%, and a 5-year return of -29.31% against the S&P 500's 96.61%. This underperformance suggests that while the stock is fairly valued, it may face challenges in regaining investor confidence in the near term.