Let's talk about the popular Akamai Technologies, Inc. (NASDAQ:AKAM). The company's shares received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$102 at one point, and dropping to the lows of US$73.69. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Akamai Technologies' current trading price of US$73.69 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Akamai Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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Is Akamai Technologies Still Cheap?

According to our valuation model, Akamai Technologies seems to be fairly priced at around 13% below our intrinsic value, which means if you buy Akamai Technologies today, you’d be paying a reasonable price for it. And if you believe that the stock is really worth $85.04, then there’s not much of an upside to gain from mispricing. Furthermore, Akamai Technologies’s low beta implies that the stock is less volatile than the wider market.

Check out our latest analysis for Akamai Technologies

Can we expect growth from Akamai Technologies?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Akamai Technologies' earnings over the next few years are expected to increase by 51%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? AKAM’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on AKAM, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Diving deeper into the forecasts for Akamai Technologies mentioned earlier will help you understand how analysts view the stock going forward. At Simply Wall St, we have the analysts estimates which you can view by clicking here .

If you are no longer interested in Akamai Technologies, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.