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 towards overvaluation. The company appears to be overvalued based on its P/E ratio of 21, which is lower than the peer average of 22.51, and an EV to EBITDA ratio of 10.73, which also suggests a premium compared to its peers. Additionally, the Price to Book Value stands at 2.48, further supporting the notion of overvaluation in the current market context.
In comparison to its peers, FactSet Research Systems, Inc. shows a higher P/E ratio of 28.40 and an EV to EBITDA of 18.56, reinforcing the competitive landscape where Akamai seems less favorable. The stock has underperformed significantly against the S&P 500, with a year-to-date return of -23.83% compared to the index's 13.30%, and a 5-year return of -34.19% versus 91.29% for the S&P 500, highlighting the challenges the company faces in delivering shareholder value.