Okta, Inc. operates an integrated system that connects persons via devices. The company’s identity cloud connects various companies to pre-integrated apps and devices every day. It offers single sign-on, mobility management, adaptive multi-factor authentication, lifecycle management, and universal directory products for IT customers; and complete authentication, user management, flexible administration, API access management, and developer tools for developers. The company is headquartered in San Francisco, California.
OKTA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Okta Inc. To summarize, we found that Okta Inc ranked in the 95th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Okta Inc ended up being:
In the past 1.25 years, Okta Inc has a compound free cash flow growth rate of 4.31%; that's higher than 96.6% of free cash flow generating stocks in the Technology sector.
Okta Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Okta Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -4.34. This coverage rate is greater than that of only 12.83% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SCWX, WEX, QCCO, ZMTP, and TRT can be thought of as valuation peers to OKTA, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
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