A reported outage at Okta (OKTA) is putting cybersecurity vulnerabilities in the spotlight just as the company faces a growing landscape of AI-driven threats. CEO Todd McKinnon addressed these challenges in an interview with Bloomberg and emphasized their increasing importance for investors.

See our latest analysis for Okta.

Shares of Okta have seen notable swings lately, with a 1.28% gain over the past day but a 4.20% decline in the last month. Despite some choppiness, the long-term picture is brighter, with a 20.83% one-year total shareholder return and an even stronger 53.40% over three years. This suggests underlying momentum is still intact even as new risks emerge.

If Okta's security challenges have you watching the sector, this is a smart moment to explore other tech and AI stocks. See the full list for free with See the full list for free.

With the stock trading at a notable discount to analyst targets and solid growth figures in recent years, the key question is whether Okta remains undervalued or if the market has already priced in future upside.

Okta’s widely followed valuation narrative sets a fair value of $120.37, noticeably higher than the last close price of $89.45. This draws focus to the bullish quantitative assumptions powering that gap.

The proliferation of AI agents and nonhuman identities is creating new, urgent security use cases that require sophisticated identity governance, privileged access management, and policy controls. These are areas where Okta is innovating with Cross App Access, Auth0 for AI Agents, and the Axiom acquisition, opening incremental growth avenues and potential margin expansion through higher value and differentiated products.

Read the complete narrative.

What juicy growth metrics power such a bold price target? This narrative relies on optimistic forecasts for Okta’s future market dominance and aggressive profitability improvement. Wondering exactly which ambitious projections drive this bullish number? Only the full narrative reveals the behind-the-scenes math.

Result: Fair Value of $120.37 (UNDERVALUED)

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

However, fierce competition from integrated cybersecurity giants or missteps during integration after acquisitions could quickly challenge Okta's growth outlook and current bullish assumptions.

Find out about the key risks to this Okta narrative.

While many see Okta as undervalued, a look at the price-to-earnings ratio offers a different take. Okta trades at a lofty 93.9 times earnings, much higher than both the US IT industry average of 31.1 and its peer group. The fair ratio sits lower at 40.5, so the market is demanding a big premium. Does this gap reflect exceptional long-term promise, or does it point to valuation risk if expectations slip?

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

If you think the story could unfold differently or want to dig into the data yourself, building your own narrative takes just minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Okta.

Take charge of your next investment by using the Simply Wall Street Screener. Don’t let these fresh opportunities slip through your fingers. Act now and spot your next big winner.

Grow your portfolio faster by tapping into these 877 undervalued stocks based on cash flows with the strongest upside based on future cash flows and market mispricing.

Unlock powerful long-term returns with these 17 dividend stocks with yields > 3% offering yields above 3% and reliable income streams for investors who value steady payouts.

Catalyze your gains by checking out these 24 AI penny stocks fueling breakthrough innovation in artificial intelligence and shaping the next wave of market leaders.

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.

Companies discussed in this article include OKTA .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

A reported outage at Okta (OKTA) is putting cybersecurity vulnerabilities in the spotlight just as the company faces a growing landscape of AI-driven threats. CEO Todd McKinnon addressed these challenges in an interview with Bloomberg and emphasized their increasing importance for investors.

See our latest analysis for Okta.

Shares of Okta have seen notable swings lately, with a 1.28% gain over the past day but a 4.20% decline in the last month. Despite some choppiness, the long-term picture is brighter, with a 20.83% one-year total shareholder return and an even stronger 53.40% over three years. This suggests underlying momentum is still intact even as new risks emerge.

If Okta's security challenges have you watching the sector, this is a smart moment to explore other tech and AI stocks. See the full list for free with See the full list for free.

With the stock trading at a notable discount to analyst targets and solid growth figures in recent years, the key question is whether Okta remains undervalued or if the market has already priced in future upside.

Okta’s widely followed valuation narrative sets a fair value of $120.37, noticeably higher than the last close price of $89.45. This draws focus to the bullish quantitative assumptions powering that gap.

The proliferation of AI agents and nonhuman identities is creating new, urgent security use cases that require sophisticated identity governance, privileged access management, and policy controls. These are areas where Okta is innovating with Cross App Access, Auth0 for AI Agents, and the Axiom acquisition, opening incremental growth avenues and potential margin expansion through higher value and differentiated products.

Read the complete narrative.

What juicy growth metrics power such a bold price target? This narrative relies on optimistic forecasts for Okta’s future market dominance and aggressive profitability improvement. Wondering exactly which ambitious projections drive this bullish number? Only the full narrative reveals the behind-the-scenes math.

Result: Fair Value of $120.37 (UNDERVALUED)

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

However, fierce competition from integrated cybersecurity giants or missteps during integration after acquisitions could quickly challenge Okta's growth outlook and current bullish assumptions.

Find out about the key risks to this Okta narrative.

While many see Okta as undervalued, a look at the price-to-earnings ratio offers a different take. Okta trades at a lofty 93.9 times earnings, much higher than both the US IT industry average of 31.1 and its peer group. The fair ratio sits lower at 40.5, so the market is demanding a big premium. Does this gap reflect exceptional long-term promise, or does it point to valuation risk if expectations slip?

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

If you think the story could unfold differently or want to dig into the data yourself, building your own narrative takes just minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Okta.

Take charge of your next investment by using the Simply Wall Street Screener. Don’t let these fresh opportunities slip through your fingers. Act now and spot your next big winner.

Grow your portfolio faster by tapping into these 877 undervalued stocks based on cash flows with the strongest upside based on future cash flows and market mispricing.

Unlock powerful long-term returns with these 17 dividend stocks with yields > 3% offering yields above 3% and reliable income streams for investors who value steady payouts.

Catalyze your gains by checking out these 24 AI penny stocks fueling breakthrough innovation in artificial intelligence and shaping the next wave of market leaders.

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.

Companies discussed in this article include OKTA .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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

If you think the story could unfold differently or want to dig into the data yourself, building your own narrative takes just minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Okta.

Take charge of your next investment by using the Simply Wall Street Screener. Don’t let these fresh opportunities slip through your fingers. Act now and spot your next big winner.

Grow your portfolio faster by tapping into these 877 undervalued stocks based on cash flows with the strongest upside based on future cash flows and market mispricing.

Unlock powerful long-term returns with these 17 dividend stocks with yields > 3% offering yields above 3% and reliable income streams for investors who value steady payouts.

Catalyze your gains by checking out these 24 AI penny stocks fueling breakthrough innovation in artificial intelligence and shaping the next wave of market leaders.

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.

Companies discussed in this article include OKTA .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com