Okta, Inc.

OKTA

Services-Prepackaged Software

Mkt Cap

$15.73B

PE

-44.31

Debt

$1.154B

Cash

$342M

EV

$16.54B

FCF

$504M

Market Cap

$15.73B

P/E Ratio

-44.31

Debt

$1.154B

Cash

$342M

EV

$16.54B

FCF

$504M

Charts data: {"Earnings":[{"time":"2016-01-30","value":-76302000},{"time":"2017-01-30","value":-83509000},{"time":"2018-01-30","value":-114359000},{"time":"2019-01-30","value":-125497000},{"time":"2020-01-30","value":-208913000},{"time":"2021-01-30","value":-266332000},{"time":"2022-01-30","value":-848411000},{"time":"2023-01-30","value":-815000000},{"time":"2024-01-30","value":-355000000}],"Sales":[{"time":"2016-01-30","value":85907000},{"time":"2017-01-30","value":160806000},{"time":"2018-01-30","value":259990000},{"time":"2019-01-30","value":399254000},{"time":"2020-01-30","value":586067000},{"time":"2021-01-30","value":835424000},{"time":"2022-01-30","value":1300201000},{"time":"2023-01-30","value":1858000000},{"time":"2024-01-30","value":2263000000}],"Net Margins":[{"time":"2016-01-30","value":-0.8881930459683146},{"time":"2017-01-30","value":-0.5193151996816039},{"time":"2018-01-30","value":-0.43985922535482136},{"time":"2019-01-30","value":-0.3143287230685228},{"time":"2020-01-30","value":-0.35646606957907545},{"time":"2021-01-30","value":-0.31879859807714406},{"time":"2022-01-30","value":-0.6525229560660236},{"time":"2023-01-30","value":-0.4386437029063509},{"time":"2024-01-30","value":-0.15687140963323024}],"Assets":[{"time":"2017-01-30","value":130635000},{"time":"2018-01-30","value":367397000},{"time":"2019-01-30","value":864335000},{"time":"2020-01-30","value":1955395000},{"time":"2021-01-30","value":3298797000},{"time":"2022-01-30","value":9205695000},{"time":"2023-01-30","value":9307000000},{"time":"2024-01-30","value":8989000000}],"Stockholders Equity":[{"time":"2016-01-30","value":-181062000},{"time":"2017-01-30","value":-243605000},{"time":"2018-01-30","value":163586000},{"time":"2019-01-30","value":252377000},{"time":"2020-01-30","value":405344000},{"time":"2021-01-30","value":694043000},{"time":"2022-01-30","value":5921856000},{"time":"2023-01-30","value":5466000000},{"time":"2024-01-30","value":5888000000}],"ROE":[{"time":"2016-01-30","value":0.42141365940948405},{"time":"2017-01-30","value":0.3428049506373022},{"time":"2018-01-30","value":-0.6990757155257785},{"time":"2019-01-30","value":-0.4972600514309941},{"time":"2020-01-30","value":-0.5153967987684535},{"time":"2021-01-30","value":-0.383739912368542},{"time":"2022-01-30","value":-0.14326775254244614},{"time":"2023-01-30","value":-0.1491035492133187},{"time":"2024-01-30","value":-0.06029211956521739}],"ROA":[{"time":"2017-01-30","value":-0.6360010716882918},{"time":"2018-01-30","value":-0.3121419064390836},{"time":"2019-01-30","value":-0.13839772773288134},{"time":"2020-01-30","value":-0.09503552990572238},{"time":"2021-01-30","value":-0.061888924962645475},{"time":"2022-01-30","value":-0.08332917829669569},{"time":"2023-01-30","value":-0.08606425271301171},{"time":"2024-01-30","value":-0.03749026588052064}]}

Okta, Inc. provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. The company offers Okta's, a suite of products and services is used to manage and secure identities, such as Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Single Sign-On that enables users to access applications in the cloud or on-premise from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, Web applications, and data; Lifecycle Management that enables IT organizations or developers to manage a user's identity throughout its lifecycle; API Access Management that enables organizations to secure APIs; Access Gateway enables organizations to extend the Workforce Identity Cloud; Advanced Server Access to manage and secure cloud infrastructure; and Okta Identity Governance, an identity access management and identity governance solutions. It also provides Universal Login allows customers to provide login experience across different applications and devices; Attack Protection, a suite of security capabilities that protect from malicious traffics; Adaptive Multi-Factor Authentication that minimizes friction to end users; Passwordless authentication enables users to login without a password and supports in various login methods; Machine to Machine provides standards-based authentication and authorization; Private Cloud that allows customers to run a dedicated cloud instance of Customer Identity Cloud; In addition, the company provides organization; Actions and Extensibility; and Enterprise Connections. It sells its products directly to customers through sales force and channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

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DCF

Discounted Cash Flow Valuation of Okta, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$504M	$655.2M	$833.6M	$1.037B	$1.262B	$1.5B	$1.742B	$1.974B	$2.183B	$2.353B	$2.47B	$24.7B
DCF		$569.7M	$630.3M	$682.1M	$721.6M	$746M	$753.2M	$742.3M	$713.6M	$668.8M	$610.6M	$6.106B
Value	$12.94B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -

Earnings Stability -

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	01-2016	01-2017	01-2018	01-2019	01-2020	01-2021	01-2022	01-2023	01-2024	TTM
Net Margin	-89%	-52%	-44%	-31%	-36%	-32%	-65%	-44%	-16%	-16%
ROA	-	-64%	-31%	-14%	-9.5%	-6.2%	-8.3%	-8.6%	-3.7%	-3.7%
ROE	42%	34%	-70%	-50%	-52%	-38%	-14%	-15%	-6%	-6%

What is the average Net Margin?

The average Net Margin over the past 5 years is -37.29%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.59%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -8.37%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.46%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -29.15%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +10.07%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

Data are missing

Years	01-2016	01-2017	01-2018	01-2019	01-2020	01-2021	01-2022	01-2023	01-2024	TTM
Debt FCF	-	-	0.00	-58.55	23.35	15.37	19.95	29.64	2.29	2.29
Debt Equity	-	-	0.00	1.08	2.31	2.54	0.31	0.40	0.20	0.20
MIN
Graham Stability	-	-	-	-	-	-	-	-	-	-

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.29.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 9.36.

What is the Graham’s Stability?

Graham’s Stability measure stands at -.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Data are missing

Years	01-2017	01-2019	01-2021	01-2023	Trend
Revenue	46%	41%	39%	22%	-6.5%
Net Income	-	-	-	-	-
Stockholders Equity	-	88%	100%	7.7%	7%
FCF	-	-	64%	580%	120%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +41.48%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -6.54%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +23.12%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +87.75%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +6.98%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +118.58%.