Should I Buy OKTA Stock in 2026?

Data-driven analysis and honest assessment for Okta Inc

Analysis Updated:
CAUTIONSeveral concerns warrant careful consideration

Current Price: $72.50P/E: 68.4

Decision Score

4.1/10

Weak

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)2/10

Very high P/E of 68.4 suggests overvaluation

Growth (20%)5/10

Slow growth of 1%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)4/10

Low FCF yield of 1.1%

Insider Activity (10%)5/10

No recent insider activity

Key Investment Metrics

Current Price

$72.50

P/E Ratio

68.41

Revenue Growth

0.1%

Profit Margin

0.1%

Market Cap

$13.3B

Dividend Yield

None

How OKTA Compares to Competitors

Understanding how OKTA stacks up against peers helps inform your investment decision.

How OKTA Compares to Peers

Upcoming Events for OKTA

+5 Reasons TO Buy OKTA

1. High gross margins of 77%

strong

Gross margins above 50% typically indicate strong brand value or intellectual property moats.

-5 Reasons NOT to Buy OKTA

1. Expensive valuation at 68x earnings

high risk

P/E of 68 is significantly above averages. High expectations leave little room for disappointment.

2. Thin profit margins of 0.1%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

3. Minimal revenue growth

low risk

Growth of 0.1% barely keeps pace with inflation.

4. Low free cash flow yield of 1.1%

low risk

Limited cash generation means most value comes from future growth expectations.

Who Should Buy OKTA?

Investment Profile

Risk Level

High

Recommended Holding Period

3-5 years

Best For:

  • Momentum Traders

    High-growth profile attracts momentum

Not Suitable For:

  • Growth Investors

    Limited 0% growth may disappoint

  • Value Investors

    Premium P/E of 68 doesn't fit value criteria

  • Income-Focused Retirees

    No dividend paid

  • Risk-Averse Investors

    High risk may cause uncomfortable volatility

Consider These Alternatives

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Pro tip: Compare OKTA directly with competitors using our comparison tool to see which stock better fits your criteria.

Get the Full Picture

Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for OKTA

Frequently Asked Questions

What is OKTA stock price today?

OKTA (Okta Inc) stock is trading at $72.50 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

Is OKTA stock going up or down today?

OKTA stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

Should I buy OKTA stock now?

The decision to buy OKTA depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

Is OKTA a buy, hold, or sell right now?

Our AI-powered analysis provides buy/hold/sell recommendations for OKTA based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

Is OKTA stock overvalued or undervalued?

OKTA currently trades at a P/E ratio of 68.41, which may indicate premium valuation. Our DCF calculator provides intrinsic value estimates to help determine if OKTA is fairly priced.

What is OKTA's P/E ratio?

OKTA has a price-to-earnings (P/E) ratio of 68.41, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

What is OKTA's market cap?

OKTA (Okta Inc) has a market capitalization of $13.34 billion, making it a mid-cap stock.

What is OKTA's price to book ratio?

OKTA trades at a price-to-book (P/B) ratio of 2.48, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

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Disclaimer

This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.