Is Okta Inc (OKTA) overvalued?
On Equity Rank's model estimate, OKTA trades 68% above its fair value. Okta Inc (OKTA) last closed at $168.69; the multi-method model fair value is $100.62.
| Price | Model fair value | Price vs model |
|---|---|---|
| $168.69 | $100.62 | 68% above |
What the answer rests on
- 1 of 7 valuation methods put OKTA's value above its price and 6 put it below, so the methods mostly agree.
- To justify today's price, OKTA's free cash flow would need to grow about 12.7% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 139.3% a year.
- Over the past year the price sat below the model fair value on 7% of trading days. The gap ranged from 37% below to 101% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind OKTA's fair value · What prices assume · Other companies