Okta, Inc. (OKTA) Stock Valuation — PE Analysis
Software - Infrastructure · NASDAQ
Current Price
$136.91
PE Ratio (TTM)
97.8x
Intrinsic Value
$79.76
-71.6% margin of safety
COMPETITIVE MOAT
↑Network Effects in Identity
Okta's large customer base creates a network effect. More users and integrations make the platform more valuable and harder to leave.
↑High Switching Costs
Integrating Okta deeply into an organization's IT infrastructure creates significant switching costs. Replacing it would be complex and disruptive.
↑Ecosystem Lock-in
Okta's extensive integrations with thousands of applications and services create an ecosystem. This makes it difficult for customers to migrate to competing identity solutions.
INVESTMENT RISKS
↓Data Breach Impact
Past security incidents have damaged Okta's reputation. Future breaches could severely erode customer trust and lead to significant customer churn.
↓Customer Concentration
While Okta has many customers, a few large enterprise clients could represent a significant portion of revenue. Losing a major customer would materially impact financial performance.
↓Execution Risk on AI Strategy
Okta's success hinges on effectively integrating and monetizing AI capabilities. Failure to execute this strategy could leave them behind competitors.
Base case
OKTA base case PE valuation
At a current price of $136.91, the base case PE valuation puts OKTA fair value near $79.76 per share. That figure assumes 10.8% yearly earnings growth, a target PE multiple of 50x, and a 10% discount rate.
Intrinsic Value
$79.76
Margin of safety
-71.6%
Expected annual return
-10.2%
Base case assumptions: 10.8% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the OKTA PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Okta, Inc. respond.
Open PE Calculator for OKTACompany Overview
Okta, Inc. delivers comprehensive identity management solutions tailored for a diverse clientele, including large corporations, small and medium-sized businesses, educational institutions, charitable organizations, and governmental bodies, operating both within the United States and globally. The company's flagship offering is the Okta Identity Cloud, a robust platform featuring a suite of integrated products and services. These include a Universal Directory, a cloud-based system designed to securely store and manage user, application, and device profiles; Single Sign-On (SSO), enabling seamless access to cloud-based or on-premises applications from multiple devices; and Adaptive Multi-Factor Authentication, which adds an extra layer of security for various applications and data. Further components encompass Lifecycle Management for overseeing a user's digital identity journey, API Access Management for securing interfaces, an Access Gateway to extend cloud capabilities to on-premises applications, and Advanced Server Access for safeguarding cloud infrastructure. Additionally, Okta incorporates Auth0's product portfolio. This includes Universal Login for consistent user authentication experiences across different apps and devices; Attack Protection, a suite of features to counter malicious online activity; Adaptive Multi-Factor Authentication, providing strong security with minimal user inconvenience; and Passwordless authentication, allowing users to log in through diverse methods without traditional passwords. Other Auth0 offerings are Machine to Machine (M2M) authentication and authorization built on industry standards; Private Cloud, for deploying dedicated Auth0 instances; and Organizations, providing independent configurations, login flows, and security settings for different groups. Okta further provides comprehensive customer assistance, educational programs, and specialized professional services. The company distributes its offerings directly via its sales teams and through a network of channel partners. Originally established as Saasure, Inc. in 2009, Okta, Inc. maintains its corporate headquarters in San Francisco, California.
Financial Metrics — OKTA PE Stock Valuation Data
PE Ratio (TTM)
97.8x
PEG Ratio
1.13
Earnings Yield
1.02%
ROE (TTM)
3.6%
Revenue/Share (TTM)
$17.01
Debt/Equity
0.06x
Frequently Asked Questions
What is the PE ratio of OKTA?
The trailing twelve-month PE ratio of OKTA reflects how much investors pay per dollar of Okta, Inc.'s earnings. This metric is most useful when compared to Software - Infrastructure peers and the company's own historical range.
Is OKTA overvalued based on PE ratio?
OKTA's PE of 97.8x combined with a PEG ratio of 1.13 provides a growth-adjusted perspective. A PEG near 1.0 means the P/E is roughly in line with the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Software - Infrastructure, a DCF analysis may be more appropriate.
How do I value OKTA stock using PE ratio?
To value Okta, Inc. using PE: (1) Compare the current PE (97.8x) against the Software - Infrastructure median to assess relative pricing, (2) check the PEG ratio (1.13) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of OKTA?
OKTA's PEG ratio is 1.13, calculated by dividing the PE ratio (97.8x) by the expected earnings growth rate. A PEG near 1.0 means the P/E is roughly in line with the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for OKTA stock valuation?
PE ratio gives a quick relative read — how OKTA is priced versus Software - Infrastructure peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See OKTA DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Technology valuationsP/E and DCF value OKTA with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.