Is Okta, Inc. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Okta, Inc. moved from fair to very attractive. Based on the current metrics, the company appears to be undervalued. Key ratios include a P/E ratio of 147, an EV to EBITDA of 145.00, and a PEG ratio of 1.05, which suggest that while the company has a high earnings multiple, its growth potential may justify this valuation.
In comparison to its peers, Okta's P/E ratio of 98.5159 is lower than that of Fair Isaac Corp. at 207.6070, indicating that Okta may be a more attractive investment relative to its growth prospects. Additionally, Zoom Video Communications, Inc. has a much lower P/E of 21.4320, highlighting Okta's premium valuation in the market. Over the past year, Okta's stock has returned 24.46%, outperforming the S&P 500's return of 16.64%, reinforcing the notion that the stock may be undervalued given its growth trajectory.