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 to be overvalued, with a P/E ratio of 21, which is slightly below the peer average of 22.51, and an EV to EBITDA ratio of 10.73, which is lower than FactSet Research Systems, Inc.'s 18.56. Additionally, the Price to Book Value stands at 2.48, suggesting that the stock may be priced too high relative to its book value.
In comparison to its peers, Akamai's valuation metrics indicate it is less attractive than FactSet, which has a significantly higher P/E ratio of 28.40. The recent stock performance further reinforces this valuation narrative, as Akamai has underperformed the S&P 500 across multiple time frames, with a year-to-date return of -23.83% compared to the S&P 500's 13.30%. This consistent underperformance suggests that investors may be reassessing the company's growth prospects, contributing to its current overvaluation status.