Latest Ratios: P/E Ratio 150.1x · EV/EBITDA 129.4x · 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 | $32.7B | $15.1B | $16.5B | $13.5B | $11.6B | $29.3B | $32.9B | $15.0B | $8.9B | $2.4B | — |
| Enterprise Value | $32.2B | $14.7B | $17.0B | $14.5B | $13.7B | $31.1B | $34.5B | $15.6B | $9.0B | $2.3B | — |
| P/E Ratio → | 150.09 | 64.49 | 1570.33 | — | — | — | — | — | — | — | — |
| P/S Ratio | 11.19 | 5.19 | 6.32 | 5.98 | 6.26 | 22.53 | 39.46 | 25.61 | 22.20 | 9.53 | — |
| P/B Ratio | 5.04 | 2.16 | 2.58 | 2.30 | 2.13 | 4.95 | 47.47 | 37.03 | 35.11 | 12.26 | — |
| P/FCF | 36.09 | 16.74 | 22.60 | 27.71 | 184.64 | 336.72 | 296.84 | 542.20 | — | — | — |
| P/OCF | 35.74 | 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 | 129.42 | 59.08 | 486.85 | — | — | — | — | — | — | — | — |
| EV / EBIT | 210.63 | 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 | 0.7% | 1.6% | 0.1% | — | — | — | — | — | — | — | — |
| FCF Yield | 2.8% | 6.0% | 4.4% | 3.6% | 0.5% | 0.3% | 0.3% | 0.2% | — | — | — |
| Buyback Yield | 0.2% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — |
| Total Shareholder Yield | 0.2% | 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 |
Includes 30+ ratios · 12 years · Updated daily
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Quick answers to the most common questions about buying OKTA stock.
Okta, Inc.'s current P/E ratio is 150.1x. The historical average is 64.5x. This places it at the 100th percentile of its historical range.
Okta, Inc.'s current EV/EBITDA is 129.4x. 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 150.1x. 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.
Key Metrics
Top Statement Risk
Security breach reputational risk
Metrics are mathematically derived from official filings.
Premium Multiple Reflects Profitability Pivot
Okta's forward P/E of 43.22 and EV/EBITDA of 32.13, as reported in recent market data, suggest the market is pricing in a successful transition to sustained profitability rather than high growth, given the deceleration in revenue growth.
The significant discount from the trailing P/E of 126.89 to the forward multiple indicates that analysts expect a sharp earnings expansion, aligning with the observed operating margin swing from negative to 13.3%. However, the P/S ratio of 9.46 remains elevated relative to mature software peers, implying that the valuation still carries a growth premium that may be vulnerable if the 'Rule of 40' is not consistently met. The valuation framework appears contingent on the company's ability to maintain its new margin profile while navigating competitive pressures.
Gross Margin Strength, Operating Leverage Emerging
Based on reported financial statements, Okta's gross margin has expanded to 79.6% in 2027Q2, while the operating margin has swung from -7.6% to 13.3%, indicating successful cost discipline and the emergence of operating leverage.
The gross margin expansion suggests the core software delivery model is highly scalable, though it remains slightly below pure-play SaaS peers due to infrastructure costs. The dramatic improvement in operating margin is the key story, driven by SG&A growing slower than revenue, which validates the company's pivot toward profitability. However, the net margin of 14.4% is still heavily influenced by non-cash stock-based compensation, meaning true cash earnings power requires careful adjustment.
Early-Stage Compounding on Invested Capital
According to recent SEC filings, Okta's ROIC has improved from negative territory to 1.3% in 2027Q2, a positive inflection that suggests the business is beginning to generate returns on the capital invested in its growth and acquisitions.
The transition from negative ROIC to positive, while still low in absolute terms, is a critical milestone for a company that has historically destroyed value on a GAAP basis. This improvement is primarily driven by the swing to operating profitability rather than a significant increase in asset turnover, which remains low at 0.09. The low ROIC underscores that the company is still in the early stages of harvesting returns from its substantial goodwill and intangible asset base.
Negligible Leverage Provides Strategic Flexibility
As reported in financial statements, Okta's debt-to-equity ratio has been reduced to a negligible 0.01, effectively eliminating interest rate risk and providing significant strategic flexibility for future investments or downturns.
The near-elimination of financial leverage, with total debt reduced to just $53 million, represents a major de-risking of the balance sheet. This conservative posture is a direct result of strong cash flow generation and a deliberate paydown strategy, which now provides ample room for share repurchases to offset SBC dilution. The lack of leverage means the company's valuation is almost entirely driven by growth and profitability expectations, with no offset from financial engineering.
Robust Liquidity Cushion Against Shocks
Based on EDBL's reported figures, Okta's current ratio of 1.53 and cash position of $763 million provide a substantial liquidity cushion, with cash alone covering over 1.5x the company's total liabilities.
The liquidity position is strong and has improved as the company has generated cash and reduced debt. The current ratio above 1.5 indicates no near-term liquidity stress, and the absence of inventory simplifies the quick ratio calculation. This robust liquidity provides a buffer against potential operational disruptions, such as elongated sales cycles or increased customer acquisition costs that could arise from the need to rebuild trust after security incidents.
The Misapplied 'Rule of 40' Metric
The 'Rule of 40' (Growth + Margin) is commonly misapplied to Okta because it obscures the massive dilutive impact of stock-based compensation, which is a real economic cost not captured in non-GAAP operating margins.
While Okta may appear to approach or meet the Rule of 40 on a non-GAAP basis, this metric fails to account for SBC, which represents over 14% of revenue and is a significant real cost to shareholders. A more appropriate metric would be a 'Cash Rule of 40' using free cash flow margin, or an adjustment to operating margin that includes SBC as an expense. Relying on the standard Rule of 40 risks overstating the company's true economic profitability and the sustainability of its margin expansion.