Is Akamai Technologies, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Akamai Technologies, Inc. has moved from attractive to expensive, indicating a shift in perception regarding its market value. The company appears overvalued based on its current metrics, with a P/E ratio of 21, an EV to EBITDA of 10.73, and a Price to Book Value of 2.48, which are relatively high compared to its peers. For instance, FactSet Research Systems, Inc. has a higher P/E of 28.40 and an EV to EBITDA of 18.56, showcasing that Akamai's valuation may not be justified given its performance.
Moreover, Akamai's stock has significantly underperformed compared to the S&P 500, with a year-to-date return of -23.83% versus the index's 13.30%. This trend continues over longer periods, with a 5-year return of -34.19% compared to the S&P 500's 91.29%. These figures reinforce the notion that Akamai Technologies, Inc. is currently overvalued in the market.