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:
We started the process of determining a valid price forecast for Okta Inc with a discounted cash flow analysis -- the results of which can be found in the table below. 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:
The business' balance sheet reveals debt to be 6% of the company's capital (with equity being the remaining amount). Approximately merely 17.2% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 just 12.68% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Okta Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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