Is Okta, Inc. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Okta, Inc. moved from fair to very attractive. The company is currently considered undervalued based on its valuation ratios, which include a P/E ratio of 147, a Price to Book Value of 2.80, and an EV to EBITDA of 145.00. In comparison to peers, Fair Isaac Corp. has a significantly higher P/E ratio of 207.61, while PTC, Inc. shows a much lower P/E of 49.59, indicating that Okta is positioned favorably within its industry.
Despite some mixed performance in the short term, Okta has outperformed the S&P 500 on a year-to-date basis with a return of 17.23% compared to 13.31% for the index. However, over longer periods, such as the five-year return, Okta has underperformed, with a decline of 56.40% versus a 100.77% increase in the S&P 500. This suggests that while Okta may currently be undervalued, its historical performance raises questions about its long-term growth potential.