As of May 23, 2025, Limelight Networks Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $2.46, this represents a potential upside of -287.9%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -386.8% |
| Potential Upside (10-year) | -287.9% |
| Discount Rate (WACC) | 6.3% - 8.2% |
Revenue is projected to grow from $218 million in 12-2021 to $404 million by 12-2031, representing a compound annual growth rate of approximately 6.4%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2021 | 218 | 5% |
| 12-2022 | 242 | 11% |
| 12-2023 | 253 | 5% |
| 12-2024 | 275 | 8% |
| 12-2025 | 294 | 7% |
| 12-2026 | 304 | 3% |
| 12-2027 | 327 | 8% |
| 12-2028 | 345 | 6% |
| 12-2029 | 364 | 6% |
| 12-2030 | 387 | 6% |
| 12-2031 | 404 | 5% |
Net profit margin is expected to improve from -25% in 12-2021 to -5% by 12-2031, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2021 | (55) | -25% |
| 12-2022 | (48) | -20% |
| 12-2023 | (42) | -17% |
| 12-2024 | (37) | -14% |
| 12-2025 | (31) | -11% |
| 12-2026 | (24) | -8% |
| 12-2027 | (24) | -7% |
| 12-2028 | (24) | -7% |
| 12-2029 | (23) | -6% |
| 12-2030 | (22) | -6% |
| 12-2031 | (21) | -5% |
with a 5-year average of $22 million. Projected CapEx is expected to maintain at approximately 11% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2022 | 24 |
| 12-2023 | 26 |
| 12-2024 | 25 |
| 12-2025 | 27 |
| 12-2026 | 30 |
| 12-2027 | 32 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 61 |
| Days Inventory | 0 |
| Days Payables | 25 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2022 | (16) | (2) | 20 | (1) | (33) |
| 2023 | (13) | (2) | 28 | 3 | (42) |
| 2024 | (8) | (2) | 30 | 4 | (41) |
| 2025 | 0 | (2) | 32 | 2 | (32) |
| 2026 | 12 | (1) | 33 | 2 | (23) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -386.8% |
| 10-Year DCF (Growth) | 0.00 | -287.9% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is Limelight Networks Inc (LLNW) a buy or a sell? Limelight Networks Inc is definitely a sell. Based on our DCF analysis, Limelight Networks Inc (LLNW) appears to be overvalued with upside potential of -287.9%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $2.46.