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 P/E ratio stands at 147, significantly higher than the peer average of approximately 98.52, while the EV to EBITDA ratio is 145.00, again above the peer average of 81.04. Additionally, the PEG ratio of 1.05 suggests that the stock may not be growing fast enough to justify its current price.
In comparison to its peers, PTC, Inc. has a P/E ratio of 49.59 and an EV to EBITDA of 29.90, indicating a more favorable valuation. Meanwhile, Zoom Video Communications, Inc., which is rated very attractive, has a P/E ratio of 21.43 and an EV to EBITDA of 15.04, further highlighting Okta's overvaluation. Over the past year, Okta's stock has returned 17.43%, outperforming the S&P 500's 14.08%, but its longer-term performance has lagged, with a 5-year return of -64.16% compared to the S&P 500's 91.29%.