Is Okta (OKTA) Offering Value After A 32% One Year Share Price Decline

Simply Wall St.03-28 19:11

Wondering whether Okta at around US$73 is a bargain or a value trap? This article walks through what the current market price might be telling you. Okta's share price has seen a 6.6% decline over the ...

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Okta's share price has seen a 6.6% decline over the ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-okta/okta/news/is-okta-okta-offering-value-after-a-32-one-year-share-price\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Okta (OKTA) Offering Value After A 32% One Year Share Price Decline</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Okta (OKTA) Offering Value After A 32% One Year Share Price Decline\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-03-28 19:11 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/software/nasdaq-okta/okta/news/is-okta-okta-offering-value-after-a-32-one-year-share-price><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Wondering whether Okta at around US$73 is a bargain or a value trap? This article walks through what the current market price might be telling you. Okta's share price has seen a 6.6% decline over the ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-okta/okta/news/is-okta-okta-offering-value-after-a-32-one-year-share-price\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"OKTG","symbol_name":"2倍做多OKTA ETF-Leverage Shares","start_time":0,"source_url":"https://simplywall.st/stocks/us/software/nasdaq-okta/okta/news/is-okta-okta-offering-value-after-a-32-one-year-share-price","article_id":"2622338945","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8030001-choice2-main-header/1585186766184"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/software/nasdaq-okta/okta/news/is-okta-okta-offering-value-after-a-32-one-year-share-price","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2622338945","pubTimestamp":1774696290,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Wondering whether Okta at around US$73 is a bargain or a value trap? This article walks through what the current market price might be telling you.\nOkta's share price has seen a 6.6% decline over the past week, and it is roughly flat over the last 30 days with a 0.3% return, while the year to date return is a 12.4% decline and the 1 year return is a 32.2% decline.\nThese moves are set against ongoing attention on cybersecurity and identity management providers, where investors continue to...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"OKTG":"2倍做多OKTA ETF-Leverage Shares","OKTA":"Okta Inc.","BK4116":"互联网服务与基础架构","BK4528":"SaaS概念","OKTX":"2倍做多OKTA ETF-Tradr","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK4588":"碎股","LU2286300806.USD":"Allianz Cyber Security AT Acc USD","BK4585":"ETF&股票定投概念","BK4560":"网络安全概念"},"translate_title":"Okta(OKTA)股价一年下跌32%后是否有价值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"OKTX":0.6,"OKTG":0.6,"DCF":1,"OKTA":1.5},"content_text":"Wondering whether Okta at around US$73 is a bargain or a value trap? This article walks through what the current market price might be telling you. Okta's share price has seen a 6.6% decline over the past week, and it is roughly flat over the last 30 days with a 0.3% return, while the year to date return is a 12.4% decline and the 1 year return is a 32.2% decline. These moves are set against ongoing attention on cybersecurity and identity management providers, where investors continue to reassess risk and growth expectations. Okta's share price history, including a 15.1% decline over 3 years and a 68.1% decline over 5 years, provides important context for how sentiment has shifted over time. On Simply Wall St's valuation checks, Okta scores 2 out of 6. The next focus is on how different valuation methods assess the stock today and how one more comprehensive approach at the end of this article can help you put those results into a clearer framework.  Okta scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: Okta Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow model takes estimates of the cash a business could generate in the future and discounts those back to a single value today. It is essentially asking what all of Okta's future cash flows are worth in today's dollars. For Okta, the model uses a 2 stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about $859.7 million. Analyst estimates and extrapolated figures point to projected free cash flow of about $1.30 billion in 2031, with a detailed set of projections running from 2026 through 2035 that are discounted back each year. When these projected cash flows are discounted to today, the DCF model suggests an estimated intrinsic value of about $111.54 per share. Compared with the current share price around $73, this implies the stock is roughly 34.3% undervalued according to this framework. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Okta is undervalued by 34.3%. Track this in your watchlist or portfolio, or discover 61 more high quality undervalued stocks. OKTA Discounted Cash Flow as at Mar 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Okta. Approach 2: Okta Price vs Earnings For a profitable company, the P/E ratio is a helpful way to think about valuation because it links what you pay per share to the earnings that support that price. Investors usually expect higher P/E ratios when they see stronger growth potential and lower risk, and lower P/E ratios when growth expectations or risk profiles are more modest. Okta currently trades on a P/E of about 55.1x. That sits above the IT industry average P/E of roughly 19.3x and also above a peer group average of about 27.3x. Simply Wall St takes this a step further with a proprietary “Fair Ratio” of 32.2x, which reflects factors such as Okta's earnings growth profile, industry, profit margins, market cap and specific risk characteristics. This Fair Ratio can be more informative than a simple comparison with industry or peers, because it adjusts for the company’s own fundamentals rather than assuming every IT stock should trade on the same multiple. Comparing Okta's current P/E of 55.1x with the Fair Ratio of 32.2x suggests the shares are pricing in more than what this framework would consider typical. Result: OVERVALUED NasdaqGS:OKTA P/E Ratio as at Mar 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 20 top founder-led companies. Upgrade Your Decision Making: Choose your Okta Narrative Earlier we mentioned that there is an even better way to understand valuation. Simply Wall St uses Narratives, where you select or create a story for Okta that ties your view on its products, competition and profitability to explicit forecasts for revenue, earnings and margins. The platform then converts these into a Fair Value you can compare with the current price, keeps that value updated automatically as new earnings or news arrive, and lets you see how different investors can legitimately disagree. For example, one Okta Narrative on the Community page uses relatively cautious assumptions and arrives at a Fair Value of about US$75 per share, while another uses more optimistic assumptions and arrives at about US$147.87, helping you decide which story and valuation best fits your own expectations. Do you think there's more to the story for Okta? Head over to our Community to see what others are saying! NasdaqGS:OKTA 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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