Is Okta, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Okta, Inc. has moved from very attractive to fair. Based on the current metrics, Okta appears to be overvalued. The company has a P/E ratio of 147, significantly higher than its peer Take-Two Interactive Software, which has a P/E of -90.83, and PTC, Inc. at 49.59. Additionally, Okta's EV to EBITDA stands at 145.00, while its peer Zoom Video Communications has a much lower ratio of 15.04, indicating a stark contrast in valuation.
In terms of returns, Okta has underperformed relative to the S&P 500 over the past week and month, with returns of -2.15% and -2.86%, respectively, while the S&P 500 gained 1.70% and 0.96%. However, over the one-year period, Okta has outperformed the S&P 500 with a return of 17.43% compared to 14.08%. Despite this one-year outperformance, the overall valuation metrics suggest that Okta is currently overvalued relative to its peers and market conditions.