The Discounted Cash Flow (DCF) valuation of Okta Inc (OKTA) is (19.00) USD. With the latest stock price at 94.41 USD, the upside of Okta Inc based on DCF is -120.1%.
Based on the latest price of 94.41 USD and our DCF valuation, Okta Inc (OKTA) is a sell. Selling OKTA stocks now will result in a potential gain of 120.1%.
Note: valuation result may not be accurate due to the company's negative cashflows.
Range | Selected | |
WACC / Discount Rate | 6.7% - 8.9% | 7.8% |
Long-term Growth Rate | 3.0% - 5.0% | 4.0% |
Fair Price | (38.06) - (13.49) | (19.00) |
Upside | -140.3% - -114.3% | -120.1% |
(USD in millions) | Projections | |||||
01-2025 | 01-2026 | 01-2027 | 01-2028 | 01-2029 | 01-2030 | |
Revenue | 2,610 | 2,910 | 3,481 | 4,293 | 5,160 | 6,273 |
% Growth | 15% | 12% | 20% | 23% | 20% | 22% |
Cost of goods sold | (618) | (655) | (744) | (871) | (995) | (1,149) |
% of Revenue | 24% | 22% | 21% | 20% | 19% | 18% |
Selling, G&A expenses | (1,283) | (1,431) | (1,711) | (2,110) | (2,536) | (3,084) |
% of Revenue | 49% | 49% | 49% | 49% | 49% | 49% |
Research & Development | (642) | (716) | (856) | (1,056) | (1,269) | (1,543) |
% of Revenue | 25% | 25% | 25% | 25% | 25% | 25% |
Net interest & other expenses | (21) | (23) | (28) | (35) | (42) | (50) |
% of Revenue | 1% | 1% | 1% | 1% | 1% | 1% |
Tax expense | (18) | (1) | (2) | (4) | (6) | (8) |
Tax rate | 39% | 2% | 2% | 2% | 2% | 2% |
Net profit | 28 | 84 | 139 | 217 | 312 | 439 |
% Margin | 1% | 3% | 4% | 5% | 6% | 7% |