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    Is Okta (OKTA) Undervalued On Fresh Buy Ratings And Earnings Revisions?

    Simply Wall St·07/26/2026 02:22:32
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    Okta (OKTA) stock has been in focus after a cluster of brokerage firms reiterated Buy to Strong Buy opinions, alongside positive earnings estimate revisions that align with a favorable ranking and indicate growing analyst confidence.

    See our latest analysis for Okta.

    Okta’s share price has moved to US$138.50 after a sharp 81.9% 90 day share price return and a 65.6% year to date share price return. The 1 year total shareholder return of 37% contrasts with a 5 year total shareholder return that is down 44%, suggesting recent momentum is building off a weaker longer term base.

    If strong interest in Okta has you thinking about what else might be setting up for a similar move, this could be a good moment to uncover 55 AI infrastructure stocks

    After such a sharp rebound and with Okta now close to some analyst targets, the real issue is whether the bigger opportunity still lies ahead or if the stock has already used up most of its upside.

    Most Popular Narrative: 8.3% Undervalued

    Okta's most followed valuation narrative pegs fair value at $151, modestly above the last close at $138.50, which puts fresh analyst enthusiasm and recent price gains into clearer context.

    Okta has a solid foundation: a technically brilliant solution, a strong market position and a recurring revenue model. But to be truly successful, Todd McKinnon needs to take strategic risks and further develop the business model.

    Read the complete narrative.

    This narrative outlines how a growing identity platform is linked to a higher fair value. The core assumptions combine steady revenue expansion, higher profitability and a richer future earnings multiple. Readers can review how these elements connect in the full Okta story.

    Result: Fair Value of $151 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, investors still face clear risks, including the possibility that Okta’s AI agent opportunity matures more slowly or that execution on new monetization models disappoints.

    Find out about the key risks to this Okta narrative.

    Another View on Okta: Expensive on Earnings

    While the popular Okta narrative points to an 8.3% discount to a fair value of $151, the earnings based view looks less generous. The stock trades on a P/E of 97.5x, compared with a fair ratio of 36.5x, the US IT industry at 17.4x and peers at 35.9x. That gap suggests investors are paying a high premium, so it may be worth considering how comfortable you are with that kind of valuation stretch.

    See what the numbers say about this price — find out in our valuation breakdown.

    NasdaqGS:OKTA P/E Ratio as at Jul 2026
    NasdaqGS:OKTA P/E Ratio as at Jul 2026

    Next Steps

    If the split views on Okta have you curious, this is the moment to review the data, consider the balance of risks and rewards, and decide how it fits your approach with 3 key rewards and 2 important warning signs

    Looking for more investment ideas beyond Okta?

    If Okta has sharpened your thinking, do not stop here. Broaden your watchlist with focused stock ideas shaped by clear fundamentals and disciplined criteria.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.