OKTA Intrinsic Valuation and Fundamental Analysis - Okta Inc - Alpha Spread

Okta Inc
NASDAQ:OKTA

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Okta Inc
NASDAQ:OKTA
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Price: 77.34 USD -0.76% Market Closed
Market Cap: 13.1B USD
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Intrinsic Value

The intrinsic value of one OKTA stock under the Base Case scenario is 79.74 USD. Compared to the current market price of 77.34 USD, Okta Inc is Undervalued by 3%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

OKTA Intrinsic Value
79.74 USD
Undervaluation 3%
Intrinsic Value
Price
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Base Case
Best Case

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Okta Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Business Breakdown

Okta Inc., a leader in identity and access management, empowers organizations to secure their digital environments through a cloud-based platform that simplifies how users authenticate and interact with applications. Founded in 2009, Okta has rapidly grown to become an integral technology partner for thousands of businesses, from startups to Fortune 500 companies, looking to enhance security while providing seamless user experiences. By enabling Single Sign-On (SSO) and adaptive multi-factor authentication, Okta not only protects sensitive data but also helps companies streamline their operations and reduce IT costs. Their innovative solutions resonate especially in an era of increased cyber...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Okta Inc

Current Assets 3B
Cash & Short-Term Investments 2.4B
Receivables 400m
Other Current Assets 280m
Non-Current Assets 6B
PP&E 129m
Intangibles 5.6B
Other Non-Current Assets 284m
Current Liabilities 1.7B
Accounts Payable 11m
Accrued Liabilities 255m
Other Current Liabilities 1.4B
Non-Current Liabilities 1.3B
Long-Term Debt 1.1B
Other Non-Current Liabilities 161m
Efficiency

Earnings Waterfall
Okta Inc

Revenue
2.5B USD
Cost of Revenue
-593m USD
Gross Profit
1.9B USD
Operating Expenses
-2.1B USD
Operating Income
-228m USD
Other Expenses
92m USD
Net Income
-136m USD

Free Cash Flow Analysis
Okta Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In its recent earnings call, Okta highlighted its record operating profitability and strong cash flow despite a challenging macroeconomic environment. The company achieved GAAP profitability for the first time and saw substantial growth with large clients, notably counting over 40% of Global 2000 companies as customers. Q3 FY '25 guidance anticipates 11% revenue growth, with a full-year revenue growth projection of 13% and a non-GAAP operating margin of 21%. Okta's platform strategy continues to drive adoption and customer retention, underpinned by new product launches and strengthened partnerships.

What is Earnings Call?
Fundamental Scores

OKTA Profitability Score
Profitability Due Diligence

Okta Inc's profitability score is 44/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Exceptional 3-Years Revenue Growth
Positive Free Cash Flow
ROE is Increasing
44/100
Profitability
Score

Okta Inc's profitability score is 44/100. The higher the profitability score, the more profitable the company is.

OKTA Solvency Score
Solvency Due Diligence

Okta Inc's solvency score is 67/100. The higher the solvency score, the more solvent the company is.

Low D/E
Long-Term Solvency
Negative Net Debt
Short-Term Solvency
67/100
Solvency
Score

Okta Inc's solvency score is 67/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

OKTA Price Targets Summary
Okta Inc

Wall Street analysts forecast OKTA stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for OKTA is 108.82 USD with a low forecast of 75.75 USD and a high forecast of 147 USD.

Lowest
Price Target
75.75 USD
2% Downside
Average
Price Target
108.82 USD
41% Upside
Highest
Price Target
147 USD
90% Upside
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Dividends

Okta Inc
does not pay dividends
Shareholder Yield

Current shareholder yield for OKTA is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
No dividends
Buyback Yield
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Ownership

OKTA Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
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OKTA News

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Profile

Okta Inc Logo
Okta Inc

Country

United States of America

Industry

Technology

Market Cap

13.1B USD

Dividend Yield

0%

Description

Okta, Inc. engages in the provision of identity management platform for the enterprise. The company is headquartered in San Francisco, California and currently employs 5,030 full-time employees. The company went IPO on 2017-04-07. The firm's Okta Identity Cloud is an independent and neutral cloud-based identity solution that allows its customers to integrate with nearly any application, service or cloud that they choose through its secure platform and cloud infrastructure. Its Okta Identity Cloud is used as the central system for an organization’s connectivity, access, authentication and identity lifecycle management needs spanning all of its users, technology and applications. Its products can be used for both customer identity and workforce identity use cases. Its Okta products include Universal Directory, Single Sign-On, Adaptive Multi-Factor Authentication, Lifecycle Management, API Access Management, Access Gateway and Advanced Server Access. The Company, through Auth0, Inc., provides products, including Universal Login, Attack Protection, Adaptive Multi-Factor Authentication, Passwordless, Machine to Machine, Private Cloud and Organizations.

Contact

CALIFORNIA
San Francisco
100 1st St Ste 600
+18887227871.0
www.okta.com

IPO

2017-04-07

Employees

5 030

Officers

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What is the Intrinsic Value of one OKTA stock?

The intrinsic value of one OKTA stock under the Base Case scenario is 79.74 USD.

Is OKTA stock undervalued or overvalued?

Compared to the current market price of 77.34 USD, Okta Inc is Undervalued by 3%.

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