Okta, Inc.

NasdaqGS:OKTA Stock Report

Market Cap: US$14.0b

Okta Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 ($79.64) is trading below our estimate of fair value ($142.33)

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 Ratio5.5x
SalesUS$2.53b
Market CapUS$13.99b

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 Average5.9x
MDB MongoDB
9.1x15.1%US$17.8b
TWLO Twilio
3.8x7.2%US$16.8b
WIX Wix.com
7.1x12.3%US$12.2b
AKAM Akamai Technologies
3.6x6.9%US$14.6b
OKTA Okta
5.4x9.4%US$14.0b

Price-To-Sales vs Peers: OKTA is good value based on its Price-To-Sales Ratio (5.4x) compared to the peer average (5.9x).

Price to Sales Ratio vs Industry

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

21 CompaniesPrice / SalesEstimated GrowthMarket Cap
KD Kyndryl Holdings
0.5x1.6%US$8.09b
DXC DXC Technology
0.3x-2.0%US$3.66b
RXT Rackspace Technology
0.2x0.4%US$502.93m
UIS Unisys
0.2x3.4%US$445.31m
OKTA 5.5xIndustry Avg. 2.8xNo. of Companies21PS02.44.87.29.612+
21 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: OKTA is expensive based on its Price-To-Sales Ratio (5.4x) compared to the US IT industry average (2.8x).

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 Ratio5.5x
Fair PS Ratio7x

Price-To-Sales vs Fair Ratio: OKTA is good value based on its Price-To-Sales Ratio (5.4x) 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$79.64
US$103.58
+30.1%
13.1%US$140.00US$75.00n/a37
Dec ’25US$77.56
US$96.45
+24.4%
16.0%US$140.00US$75.00n/a36
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$64.00US$77.5638
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

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 18:01
End of Day Share Price 2024/12/27 00:00
Earnings2024/10/31
Annual Earnings2024/01/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Okta, Inc. is covered by 62 analysts. 40 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Shrenik KothariBaird
Ishan MajumdarBaptista Research
Saket KaliaBarclays