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 98th percentile in terms of potential gain offered. Our DCF model suggests the stock is undervalued by 25141.33%; returns of such proportions should be viewed with some skepticism, though. As for the metrics that stood out in our discounted cash flow analysis of Okta Inc, consider:
The compound growth rate in the free cash flow of Okta Inc over the past 0.77 years is 6.19%; that's better than 98% of cash flow producing equities in the Technology sector, where it is classified.
Okta Inc's effective tax rate, as measured by taxes paid relative to net income, is at 1 -- greater than only 24.6% 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 -7.58. This coverage rate is greater than that of only 8.01% 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
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SAN FRANCISCO--(BUSINESS WIRE)--UJET Inc., a leading provider of cloud customer support solutions, today announced its integration into leading Identity Management providers, Okta, OneLogin, and Microsoft ADFS. These integrations allow support teams and business leaders to leverage best-in-class enterprise login authentication for all users of the UJET Admin Portal and agent adapters. With the addition of leading Identity Management solutions, UJET customers better protect the identities of the
Okta's (OKTA) first-quarter fiscal 2021 results are expected to reflect higher adoption of Identity solutions. However, continued investments in Identity Platform are expected to have kept margin under pressure.