Latest Ratios: P/E Ratio 113.3x · EV/EBITDA 97.3x · ROE 3.5%. (2015–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $24.7B | $15.1B | $16.5B | $13.5B | $11.6B | $29.3B | $32.9B | $15.0B | $8.9B | $2.4B | — |
| Enterprise Value | $24.2B | $14.7B | $17.0B | $14.5B | $13.7B | $31.1B | $34.5B | $15.6B | $9.0B | $2.3B | — |
| P/E Ratio → | 113.34 | 64.49 | 1570.33 | — | — | — | — | — | — | — | — |
| P/S Ratio | 8.45 | 5.19 | 6.32 | 5.98 | 6.26 | 22.53 | 39.46 | 25.61 | 22.20 | 9.53 | — |
| P/B Ratio | 3.80 | 2.16 | 2.58 | 2.30 | 2.13 | 4.95 | 47.47 | 37.03 | 35.11 | 12.26 | — |
| P/FCF | 27.25 | 16.74 | 22.60 | 27.71 | 184.64 | 336.72 | 296.84 | 542.20 | — | — | — |
| P/OCF | 26.98 | 16.57 | 22.00 | 26.41 | 135.26 | 281.68 | 257.42 | 269.95 | 584.07 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.04 | 6.53 | 6.40 | 7.39 | 23.90 | 41.30 | 26.61 | 22.52 | 9.03 | — |
| EV / EBITDA | 97.30 | 59.08 | 486.85 | — | — | — | — | — | — | — | — |
| EV / EBIT | 158.35 | 96.15 | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 16.25 | 23.34 | 29.69 | 218.02 | 357.07 | 310.66 | 563.30 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 77.4% | 77.4% | 76.3% | 74.3% | 70.6% | 69.5% | 73.9% | 72.8% | 71.6% | 68.5% | 65.2% |
| Operating Margin | 5.2% | 5.2% | -2.4% | -22.8% | -43.7% | -59.1% | -24.4% | -31.7% | -30.0% | -43.6% | -46.4% |
| Net Profit Margin | 8.1% | 8.1% | 1.1% | -15.7% | -43.9% | -65.2% | -31.9% | -35.6% | -31.4% | -42.8% | -46.7% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.5% | 3.5% | 0.5% | -6.3% | -14.3% | -25.6% | -48.4% | -63.5% | -55.6% | -119.6% | -480.5% |
| ROA | 2.5% | 2.5% | 0.3% | -3.9% | -8.8% | -13.6% | -10.1% | -14.2% | -18.1% | -41.5% | -53.5% |
| ROIC | 1.7% | 1.7% | -0.7% | -5.4% | -8.0% | -11.6% | -9.5% | -20.3% | -39.4% | -516.9% | — |
| ROCE | 2.2% | 2.2% | -0.9% | -6.9% | -10.3% | -15.8% | -12.9% | -20.4% | -38.4% | -107.8% | -254.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.06 | 0.06 | 0.15 | 0.22 | 0.43 | 0.34 | 2.84 | 2.72 | 1.70 | — | — |
| Debt / EBITDA | 1.69 | 1.69 | 27.20 | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.06 | 0.08 | 0.16 | 0.38 | 0.30 | 2.21 | 1.44 | 0.52 | -0.64 | — |
| Net Debt / EBITDA | -1.75 | -1.75 | 15.51 | — | — | — | — | — | — | — | — |
| Debt / FCF | — | -0.48 | 0.74 | 1.97 | 33.38 | 20.34 | 13.82 | 21.10 | — | — | — |
| Interest Coverage | 38.25 | 38.25 | -12.60 | -41.13 | -71.82 | -8.34 | -2.66 | -6.79 | -7.33 | — | — |
Net cash position: cash ($858M) exceeds total debt ($422M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.36 | 1.36 | 1.35 | 1.67 | 2.20 | 2.45 | 1.86 | 2.92 | 1.24 | 1.69 | 0.69 |
| Quick Ratio | 1.36 | 1.36 | 1.35 | 1.67 | 2.20 | 2.45 | 1.86 | 2.92 | 1.24 | 1.69 | 0.69 |
| Cash Ratio | 1.00 | 1.00 | 1.00 | 1.24 | 1.76 | 2.01 | 1.65 | 2.57 | 0.98 | 1.22 | 0.28 |
| Asset Turnover | — | 0.30 | 0.28 | 0.25 | 0.20 | 0.14 | 0.25 | 0.30 | 0.41 | 0.64 | 1.23 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 85.90 | 86.84 | 90.16 | 94.49 | 111.75 | 85.16 | 81.04 | 85.41 | 74.34 | 78.41 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.9% | 1.6% | 0.1% | — | — | — | — | — | — | — | — |
| FCF Yield | 3.7% | 6.0% | 4.4% | 3.6% | 0.5% | 0.3% | 0.3% | 0.2% | — | — | — |
| Buyback Yield | 0.3% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — |
| Total Shareholder Yield | 0.3% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — |
| Shares Outstanding | — | $179M | $175M | $164M | $158M | $148M | $127M | $117M | $108M | $83M | $91M |
Enterprise spending and competition
As reported in recent financial statements, Okta's forward P/E of 32.32 suggests that investors are pricing in a shift from hyper-growth to a more sustainable, earnings-focused model, though the current P/S of 7.07 remains elevated compared to traditional infrastructure software peers in the broader technology sector.
The current valuation appears to be in a state of flux as the market reconciles the company's decelerating top-line growth with its newfound GAAP profitability. Investors should monitor whether the forward multiple can be sustained if growth continues to moderate, as the current premium likely relies on the assumption of long-term margin expansion.
Based on reported figures, Okta's ROIC has struggled to gain meaningful traction, hovering at a modest 0.6% in 2027Q1, which indicates that the company is still in the early stages of generating efficient returns on the significant capital deployed for past acquisitions and internal platform development.
The low return on invested capital suggests that the company's massive goodwill balance from the Auth0 acquisition continues to weigh heavily on the denominator of the return calculation. Future improvements in ROIC will likely depend on the company's ability to drive higher operating margins while maintaining a disciplined approach to further capital-intensive expansion.
According to recent SEC filings, Okta's DSO has fluctuated between 48 and 74 days over the last ten quarters, suggesting that while the company maintains a consistent billing cycle, its ability to collect cash remains sensitive to the broader enterprise procurement environment and the complexity of its multi-year contracts.
The stability in the cash conversion cycle, supported by a consistent DPO of 7 days, indicates that the company is managing its short-term obligations effectively. However, investors should watch for any sustained increase in DSO, which could signal a deterioration in customer payment behavior or a shift in the underlying contract mix.
As indicated by the provided data, the P/E ratio is a frequently misapplied metric for Okta because it fails to account for the massive non-cash stock-based compensation that significantly distorts GAAP earnings, making the company appear less profitable than its underlying cash-generation capacity would otherwise suggest to analysts.
Relying on P/E ratios obscures the true economic reality of the business, as it treats SBC as a standard operating expense rather than a dilutive equity issuance. A more appropriate valuation framework would prioritize P/FCF or EV/EBITDA, which better capture the company's ability to generate cash after accounting for the costs of its human capital.
Includes 30+ ratios · 12 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying OKTA stock.
Okta, Inc.'s current P/E ratio is 113.3x. The historical average is 64.5x. This places it at the 100th percentile of its historical range.
Okta, Inc.'s current EV/EBITDA is 97.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 59.1x.
Okta, Inc.'s return on equity (ROE) is 3.5%. The historical average is -95.8%.
Based on historical data, Okta, Inc. is trading at a P/E of 113.3x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Okta, Inc. has 77.4% gross margin and 5.2% operating margin.
Okta, Inc.'s Debt/EBITDA ratio is 1.7x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.