Is Okta, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Okta, Inc. has moved from fair to very attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, particularly given its P/E ratio of 147, which, while high, is significantly lower than that of its peer Fair Isaac Corp. at 207.61. Additionally, Okta's EV to EBITDA ratio stands at 145.00, which is more favorable compared to the industry average, suggesting potential for growth relative to its peers. The PEG ratio of 1.05 also indicates that the stock may be reasonably priced relative to its expected growth.
In terms of peer comparison, Okta, Inc. has a P/E of 98.52, which is lower than Fair Isaac Corp.'s 207.61, but higher than PTC, Inc.'s 49.59, highlighting a competitive positioning within the software products sector. Despite a challenging long-term performance, Okta's recent stock returns have outperformed the S&P 500 over the past year, with a return of 29.42% compared to the S&P 500's 17.82%, reinforcing the notion that the stock may be undervalued relative to its growth potential.