Is Akamai Underpriced?

12/8/17

Akamai (NASDAQ:AKAM) is a company that has a diverse portfolio in information software and services. They provide cloud networks for companies to operate on while also having fast and secure services to protect customer's information from hackers. With an EBITDA margin of 31.6% and an operating margin of 19.64%, which is at the top of their industry, it shows that they retain the most money out of each dollar of revenue gained compared to other similar companies. In the fourth quarter, with the acquisition of Nominum incorporated into the company's financials and the future possibility of gaining market share from their over the top (OTT) focus, Akamai can be seen as underpriced at its current levels. I believe that Akamai also has the capability of continuous growth over the next year just as the industry did in the graph shown on Bloomberg below.

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