* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $494 M
Debt : $947 M
EBITDA : $154 M
Net Debt (Debt - Cash): $453 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Software - infrastructure
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 27.01
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 11 overlapping fiscal years (max 20).Average Free Cash Flow: $120 M
Average Revenue: $945 M
Revenue Converted To Free Cash Flow (%): 12.7%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-01-31): $2,610 M
Revenue 4 Years Ago (2021-01-31): $835 M
Last 5 Years Average Revenue Growth: 42%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-01-31): $175 M
Share Count 5 Years Ago (2021-01-31): $127 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $3.58
Trailing 12-Month Earnings Per Share (EPS): $3.29
Average Earnings Per Share (EPS): $3.44
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 10 valid ROE years (max 20).Average ROE: -55.3%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $93
52-Week Low: $71
Threshold Price (15% Above 52-Week Low): $81
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $16,028 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 15 points to above Okta Inc (OKTA) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE
42.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 1 Years Avg P/E (40.00)
× EPS ($3.44) = $137.40.
Last 1 Years Avg PE 40, Fair Value PE 20, Industry Based PE 30, Growth Based PE 42, RCFC Based PE 20.19, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 25.61. Value-Trades has assined P/E value 25.61. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.435.
The fair value of Okta Inc (OKTA) stock should be (25.61 x $3.435) = $87.97.
