<div id="readability-page-1"><div><p>Okta (OKTA) is back in focus after recent trading left the identity software stock around US$76, with returns over the past year, past 3 months and month all in negative territory.</p> <p>See our latest analysis for Okta.</p> <p>With the share price at about US$76.16, Okta’s recent 30 day share price return of 3.24% and 90 day share price return of 9.85% contrast with a 1 year total shareholder return of 31.91% and a 5 year total shareholder return of 67.51%. This suggests momentum has softened even though long term holders have seen mixed outcomes.</p> <p>If you are weighing Okta against other opportunities in software and AI, it can help to see what else is on the move by scanning 66 profitable AI stocks that aren't just burning cash</p> <p>So, with Okta trading near US$76 after a 1-year total shareholder return decline of 31.91% and a 5-year total shareholder return decline of 67.51%, is this reset creating a buying opportunity, or is the market already pricing in future growth?</p> <h2>Most Popular Narrative: 48.5% Undervalued</h2> <p>Okta's most followed narrative pegs fair value at $147.87 per share, almost double the recent $76.16 close, according to Tokyo's detailed work.</p> <blockquote> <p><em>Okta has a solid foundation: a technically brilliant solution, a strong market position and a recurring revenue model. But to be truly successful, Todd McKinnon needs to take strategic risks and further develop the business model.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>The narrative focuses on improving profitability, healthy free cash flow estimates and a profit margin profile that assumes the current identity platform can support a much larger earnings base. The key questions are how quickly those margins build, how long growth can be maintained and what kind of valuation multiple fits that earnings path.</p> <p><strong>Result: Fair Value of $147.87 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, there are clear pressure points, including recent negative 1 year and 5 year returns and a 30 day decline, that could challenge a simple undervaluation pitch.</p> <p>Find out about the key risks to this Okta narrative.</p> <h2>Another View: Market Pricing Looks Rich</h2> <p>Tokyo’s fair value of $147.87 points to Okta looking undervalued, but the current P/E of 57.3x tells a different story. That is much higher than the US IT industry at 20.4x, peers at 37x, and even the fair ratio of 31.6x. This suggests valuation risk if sentiment cools.</p> <p>This gap between cash flow based valuation and earnings based pricing puts the focus back on your risk tolerance and time horizon, and whether you think earnings can justify such a premium.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/6701a9fe-58f8-4196-87b8-f32ddb8bdf97/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA0LTMw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/6701a9fe-58f8-4196-87b8-f32ddb8bdf97/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTA0LTMw"/><figcaption>NasdaqGS:OKTA P/E Ratio as at Apr 2026</figcaption></figure><h2>Next Steps</h2> <p>After weighing the mixed signals on value and risk, it makes sense to move fast and test the numbers yourself rather than rely on any single story. To see what the market is currently optimistic about, review the 3 key rewards</p> <h2>Looking for more investment ideas?</h2> <p>If Okta has sharpened your thinking, do not stop here. Broaden your watchlist with a few focused stock ideas that match the way you like to invest.</p> <ul> <li>Target growth potential in smaller names by scanning 24 elite penny stocks with strong financials before they attract wider attention.</li> <li>Zero in on quality at a sensible price by reviewing the 53 high quality undervalued stocks that already combine robust fundamentals with attractive metrics.</li> <li>Prioritise resilience and sleep better at night by using the 73 resilient stocks with low risk scores to concentrate on companies with more stable profiles.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><h3><strong>New: </strong>AI Stock Screener &amp; Alerts</h3><p>Our new AI Stock Screener scans the market every day to uncover opportunities.</p><div><p>• Dividend Powerhouses (3%+ Yield)<br/>• Undervalued Small Caps with Insider Buying<br/>• High growth Tech and AI Companies</p><p>Or build your own from over 50 metrics.</p></div><p>Explore Now for Free</p></div></div></div>

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<p>Okta (OKTA) is currently trading at approximately $76, with recent returns showing a decline over the past year and three months. Despite a 30-day return of 3.24% and a 90-day return of 9.85%, the one-year total shareholder return is down 31.91%. Analysts suggest Okta is undervalued with a fair value of $147.87, but its current P/E ratio of 57.3x is significantly higher than industry peers, indicating potential valuation risks. Investors are encouraged to assess their risk tolerance and explore other investment opportunities.</p>

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Assessing Okta (OKTA) Valuation As Long Term Returns Contrast With Current Premium P/E