Okta Valuation

Is OKTA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of OKTA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OKTA ($104.92) is trading below our estimate of fair value ($140.12)

Significantly Below Fair Value: OKTA is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for OKTA?

Other financial metrics that can be useful for relative valuation.

OKTA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.4x
Enterprise Value/EBITDA-44.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does OKTA's PS Ratio compare to its peers?

The above table shows the PS ratio for OKTA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average11.9x
MDB MongoDB
15.5x17.1%US$26.1b
TWLO Twilio
2.7x7.0%US$11.1b
GDDY GoDaddy
4.1x6.8%US$17.4b
NET Cloudflare
25.1x20.0%US$32.6b
OKTA Okta
7.8x11.1%US$17.6b

Price-To-Sales vs Peers: OKTA is good value based on its Price-To-Sales Ratio (7.8x) compared to the peer average (11.9x).


Price to Earnings Ratio vs Industry

How does OKTA's PE Ratio compare vs other companies in the US IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.1%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.1%
n/an/an/a
No more companies

Price-To-Sales vs Industry: OKTA is expensive based on its Price-To-Sales Ratio (7.8x) compared to the US IT industry average (2.1x).


Price to Sales Ratio vs Fair Ratio

What is OKTA's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OKTA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.8x
Fair PS Ratio8.1x

Price-To-Sales vs Fair Ratio: OKTA is good value based on its Price-To-Sales Ratio (7.8x) compared to the estimated Fair Price-To-Sales Ratio (8.1x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst OKTA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$104.92
US$113.42
+8.1%
11.8%US$140.00US$81.14n/a38
Mar ’25US$108.49
US$109.50
+0.9%
14.6%US$140.00US$75.00n/a38
Feb ’25US$84.90
US$87.26
+2.8%
13.4%US$120.00US$64.00n/a39
Jan ’25US$90.53
US$84.29
-6.9%
14.6%US$120.00US$64.00n/a38
Dec ’24US$73.63
US$84.04
+14.1%
14.8%US$120.00US$64.00n/a38
Nov ’24US$68.73
US$91.45
+33.1%
12.3%US$120.00US$64.00n/a39
Oct ’24US$81.51
US$93.94
+15.3%
11.8%US$120.00US$64.00n/a41
Sep ’24US$86.16
US$93.32
+8.3%
11.7%US$120.00US$64.00n/a41
Aug ’24US$76.19
US$92.05
+20.8%
13.1%US$120.00US$64.00n/a41
Jul ’24US$69.35
US$91.93
+32.6%
13.2%US$120.00US$64.00n/a41
Jun ’24US$74.69
US$91.76
+22.8%
13.6%US$120.00US$64.00n/a41
May ’24US$68.64
US$92.18
+34.3%
13.4%US$120.00US$64.00n/a40
Apr ’24US$86.24
US$92.08
+6.8%
13.4%US$120.00US$64.00n/a38
Mar ’24US$71.44
US$81.56
+14.2%
18.4%US$125.00US$45.00US$108.4937
Feb ’24US$76.15
US$80.34
+5.5%
19.0%US$125.00US$45.00US$84.9035
Jan ’24US$68.33
US$79.12
+15.8%
23.0%US$130.00US$45.00US$90.5332
Dec ’23US$67.43
US$80.68
+19.7%
25.3%US$130.00US$45.00US$73.6330
Nov ’23US$55.00
US$93.26
+69.6%
23.4%US$145.00US$45.00US$68.7329
Oct ’23US$56.87
US$101.20
+77.9%
18.2%US$145.00US$65.00US$81.5127
Sep ’23US$60.60
US$111.75
+84.4%
24.3%US$193.00US$75.00US$86.1626
Aug ’23US$98.53
US$142.54
+44.7%
14.9%US$193.00US$94.00US$76.1926
Jul ’23US$95.98
US$149.15
+55.4%
14.1%US$195.00US$108.00US$69.3527
Jun ’23US$84.43
US$186.00
+120.3%
28.6%US$290.00US$105.00US$74.6926
May ’23US$119.31
US$219.88
+84.3%
14.6%US$290.00US$170.00US$68.6426
Apr ’23US$148.79
US$233.89
+57.2%
16.0%US$336.00US$170.00US$86.2427
Mar ’23US$184.14
US$268.28
+45.7%
10.9%US$336.00US$215.00US$71.4429

Analyst Forecast: Target price is less than 20% higher than the current share price.


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