ORCL Relative Valuation
ORCL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ORCL is overvalued; if below, it's undervalued.
Historical Valuation
Oracle Corp (ORCL) is now in the Fair zone, suggesting that its current forward PE ratio of 26.91 is considered Fairly compared with the five-year average of 20.64. The fair price of Oracle Corp (ORCL) is between 172.30 to 247.48 according to relative valuation methord.
Relative Value
Fair Zone
172.30-247.48
Current Price：195.71
Fair
26.91
PE
1Y
3Y
5Y
16.66
EV/EBITDA
Oracle Corp. (ORCL) has a current EV/EBITDA of 16.66. The 5-year average EV/EBITDA is 14.68. The thresholds are as follows: Strongly Undervalued below 8.28, Undervalued between 8.28 and 11.48, Fairly Valued between 17.87 and 11.48, Overvalued between 17.87 and 21.07, and Strongly Overvalued above 21.07. The current Forward EV/EBITDA of 16.66 falls within the Historic Trend Line -Fairly Valued range.
21.71
EV/EBIT
Oracle Corp. (ORCL) has a current EV/EBIT of 21.71. The 5-year average EV/EBIT is 16.97. The thresholds are as follows: Strongly Undervalued below 7.69, Undervalued between 7.69 and 12.33, Fairly Valued between 21.61 and 12.33, Overvalued between 21.61 and 26.25, and Strongly Overvalued above 26.25. The current Forward EV/EBIT of 21.71 falls within the Overvalued range.
7.44
PS
Oracle Corp. (ORCL) has a current PS of 7.44. The 5-year average PS is 6.04. The thresholds are as follows: Strongly Undervalued below 2.36, Undervalued between 2.36 and 4.20, Fairly Valued between 7.88 and 4.20, Overvalued between 7.88 and 9.72, and Strongly Overvalued above 9.72. The current Forward PS of 7.44 falls within the Historic Trend Line -Fairly Valued range.
18.19
P/OCF
Oracle Corp. (ORCL) has a current P/OCF of 18.19. The 5-year average P/OCF is 16.61. The thresholds are as follows: Strongly Undervalued below 7.69, Undervalued between 7.69 and 12.15, Fairly Valued between 21.08 and 12.15, Overvalued between 21.08 and 25.54, and Strongly Overvalued above 25.54. The current Forward P/OCF of 18.19 falls within the Historic Trend Line -Fairly Valued range.
-23.01
P/FCF
Oracle Corp. (ORCL) has a current P/FCF of -23.01. The 5-year average P/FCF is -10.56. The thresholds are as follows: Strongly Undervalued below -439.63, Undervalued between -439.63 and -225.10, Fairly Valued between 203.98 and -225.10, Overvalued between 203.98 and 418.52, and Strongly Overvalued above 418.52. The current Forward P/FCF of -23.01 falls within the Historic Trend Line -Fairly Valued range.
Oracle Corp (ORCL) has a current Price-to-Book (P/B) ratio of 18.77. Compared to its 3-year average P/B ratio of 53.79 , the current P/B ratio is approximately -65.10% higher. Relative to its 5-year average P/B ratio of 21.52, the current P/B ratio is about -12.76% higher. Oracle Corp (ORCL) has a Forward Free Cash Flow (FCF) yield of approximately -2.34%. Compared to its 3-year average FCF yield of 2.13%, the current FCF yield is approximately -209.83% lower. Relative to its 5-year average FCF yield of 2.99% , the current FCF yield is about -178.47% lower.
18.77
P/B
Median3y
53.79
Median5y
21.52
-2.34
FCF Yield
Median3y
2.13
Median5y
2.99
Competitors Valuation Multiple
The average P/S ratio for ORCL's competitors is 20.59, providing a benchmark for relative valuation. Oracle Corp Corp (ORCL) exhibits a P/S ratio of 7.44, which is -63.84% above the industry average. Given its robust revenue growth of 14.22%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ORCL increased by 15.08% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 22.75 to 38.49.
The secondary factor is the Revenue Growth, contributed 14.22%to the performance.
Overall, the performance of ORCL in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is Oracle Corp (ORCL) currently overvalued or undervalued?
Oracle Corp (ORCL) is now in the Fair zone, suggesting that its current forward PE ratio of 26.91 is considered Fairly compared with the five-year average of 20.64. The fair price of Oracle Corp (ORCL) is between 172.30 to 247.48 according to relative valuation methord.
What is Oracle Corp (ORCL) fair value?
ORCL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Oracle Corp (ORCL) is between 172.30 to 247.48 according to relative valuation methord.
How does ORCL's valuation metrics compare to the industry average?
The average P/S ratio for ORCL's competitors is 20.59, providing a benchmark for relative valuation. Oracle Corp Corp (ORCL) exhibits a P/S ratio of 7.44, which is -63.84% above the industry average. Given its robust revenue growth of 14.22%, this premium appears unsustainable.
What is the current P/B ratio for Oracle Corp (ORCL) as of Jan 04 2026?
As of Jan 04 2026, Oracle Corp (ORCL) has a P/B ratio of 18.77. This indicates that the market values ORCL at 18.77 times its book value.
What is the current FCF Yield for Oracle Corp (ORCL) as of Jan 04 2026?
As of Jan 04 2026, Oracle Corp (ORCL) has a FCF Yield of -2.34%. This means that for every dollar of Oracle Corp’s market capitalization, the company generates -2.34 cents in free cash flow.
What is the current Forward P/E ratio for Oracle Corp (ORCL) as of Jan 04 2026?
As of Jan 04 2026, Oracle Corp (ORCL) has a Forward P/E ratio of 26.91. This means the market is willing to pay $26.91 for every dollar of Oracle Corp’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Oracle Corp (ORCL) as of Jan 04 2026?
As of Jan 04 2026, Oracle Corp (ORCL) has a Forward P/S ratio of 7.44. This means the market is valuing ORCL at $7.44 for every dollar of expected revenue over the next 12 months.