Okta, Inc. (OKTA) DCF Valuation
Transparent DCF models put Okta, Inc. (OKTA)'s fair value in a range of $56.99 – $145.44 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $119.96 sits within that range — roughly fairly valued on these assumptions.
Reverse DCF: at today's $119.96, the market is pricing in roughly +15.5%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +47.7%. The price assumes a slowdown from its track record — a potential value signal if growth holds.
Current Price
$119.96
Fair-Value Range
$56.99 – $145.44
Market-Implied Growth
+15.5%/yr
vs +47.7% 5Y actual
OKTA DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $546.5M · 0.17B shares · net cash $508.0M
Estimated Fair Value
$56.99
-52.5% vs $119.96
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $119.96; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $70.09 | $73.52 | $77.58 | $82.46 | $88.42 |
| 9.0% | $60.63 | $62.98 | $65.69 | $68.85 | $72.59 |
| 10.0% | $53.43 | $55.10 | $56.99 | $59.16 | $61.65 |
| 11.0% | $47.77 | $48.99 | $50.36 | $51.90 | $53.65 |
| 12.0% | $43.20 | $44.12 | $45.14 | $46.27 | $47.53 |
About Okta, Inc.
Okta, Inc. delivers comprehensive identity management solutions tailored for a diverse clientele, including large corporations, small and medium-sized businesses, educational institutions, charitable organizations, and governmental bodies, operating both within the United States and globally. The company's flagship offering is the Okta Identity Cloud, a robust platform featuring a suite of integrated products and services. These include a Universal Directory, a cloud-based system designed to securely store and manage user, application, and device profiles; Single Sign-On (SSO), enabling seamless access to cloud-based or on-premises applications from multiple devices; and Adaptive Multi-Factor Authentication, which adds an extra layer of security for various applications and data. Further components encompass Lifecycle Management for overseeing a user's digital identity journey, API Access Management for securing interfaces, an Access Gateway to extend cloud capabilities to on-premises applications, and Advanced Server Access for safeguarding cloud infrastructure. Additionally, Okta incorporates Auth0's product portfolio. This includes Universal Login for consistent user authentication experiences across different apps and devices; Attack Protection, a suite of features to counter malicious online activity; Adaptive Multi-Factor Authentication, providing strong security with minimal user inconvenience; and Passwordless authentication, allowing users to log in through diverse methods without traditional passwords. Other Auth0 offerings are Machine to Machine (M2M) authentication and authorization built on industry standards; Private Cloud, for deploying dedicated Auth0 instances; and Organizations, providing independent configurations, login flows, and security settings for different groups. Okta further provides comprehensive customer assistance, educational programs, and specialized professional services. The company distributes its offerings directly via its sales teams and through a network of channel partners. Originally established as Saasure, Inc. in 2009, Okta, Inc. maintains its corporate headquarters in San Francisco, California.
- Sector
- Technology
- Industry
- Software - Infrastructure
- CEO
- Todd McKinnon