Okta, Inc.

NasdaqGS:OKTA Stock Report

Market Cap: US$12.5b

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 ($73.66) is trading below our estimate of fair value ($132.2)

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?

Key metric: As OKTA is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for OKTA. This is calculated by dividing OKTA's market cap by their current revenue.
What is OKTA's PS Ratio?
PS Ratio5.1x
SalesUS$2.45b
Market CapUS$12.51b

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 Average6x
TWLO Twilio
3.4x7.2%US$14.8b
AKAM Akamai Technologies
3.3x6.9%US$13.1b
MDB MongoDB
11.4x15.4%US$20.7b
WIX Wix.com
6.1x11.4%US$10.1b
OKTA Okta
5.1x10.5%US$12.5b

Price-To-Sales vs Peers: OKTA is good value based on its Price-To-Sales Ratio (5.1x) compared to the peer average (6x).

Price to Sales Ratio vs Industry

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

26 CompaniesPrice / SalesEstimated GrowthMarket Cap
KD Kyndryl Holdings
0.4x1.7%US$6.49b
DXC DXC Technology
0.3x-1.9%US$3.77b
RXT Rackspace Technology
0.2x0.7%US$550.72m
UIS Unisys
0.3x3.4%US$519.53m
OKTA 5.1xIndustry Avg. 2.1xNo. of Companies26PS0246810+
26 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: OKTA is expensive based on its Price-To-Sales Ratio (5.1x) 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 Ratio5.1x
Fair PS Ratio7x

Price-To-Sales vs Fair Ratio: OKTA is good value based on its Price-To-Sales Ratio (5.1x) compared to the estimated Fair Price-To-Sales Ratio (7x).

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$73.66
US$97.47
+32.3%
15.7%US$140.00US$75.00n/a35
Nov ’25US$73.23
US$98.55
+34.6%
15.6%US$140.00US$75.00n/a35
Oct ’25US$72.58
US$106.45
+46.7%
14.2%US$140.00US$75.00n/a36
Sep ’25US$78.73
US$108.64
+38.0%
13.0%US$140.00US$75.00n/a36
Aug ’25US$91.38
US$114.95
+25.8%
10.0%US$140.00US$95.00n/a36
Jul ’25US$94.55
US$114.89
+21.5%
10.1%US$140.00US$95.00n/a36
Jun ’25US$88.68
US$114.25
+28.8%
11.2%US$140.00US$81.14n/a37
May ’25US$93.34
US$113.42
+21.5%
11.8%US$140.00US$81.14n/a38
Apr ’25US$103.49
US$113.42
+9.6%
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$64.00US$73.2339
Oct ’24US$81.51
US$93.94
+15.3%
11.8%US$120.00US$64.00US$72.5841
Sep ’24US$86.16
US$93.32
+8.3%
11.7%US$120.00US$64.00US$78.7341
Aug ’24US$76.19
US$92.05
+20.8%
13.1%US$120.00US$64.00US$91.3841
Jul ’24US$69.35
US$91.93
+32.6%
13.2%US$120.00US$64.00US$94.5541
Jun ’24US$74.69
US$91.76
+22.8%
13.6%US$120.00US$64.00US$88.6841
May ’24US$68.64
US$92.18
+34.3%
13.4%US$120.00US$64.00US$93.3440
Apr ’24US$86.24
US$92.08
+6.8%
13.4%US$120.00US$64.00US$103.4938
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

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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