ORCL Valuation

Oracle Corp

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245.260

-3.02(-1.216%)1D

Overview
Forecast
Valuation
Earnings

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 Overvalued zone, suggesting that its current forward PE ratio of 36.58 is considered Overvalued compared with the five-year average of 18.99. The fair price of Oracle Corp (ORCL) is between 174.71 to 228.85 according to relative valuation methord. Compared to the current price of 248.28 USD , Oracle Corp is Overvalued By 8.49%.

Relative Value

Fair Zone

174.71-228.85

Current Price：248.28

8.49%

Overvalued

36.58

Trailing

Forward

22.68

EV/EBITDA

Oracle Corp. (ORCL) has a current EV/EBITDA of 22.68. The 5-year average EV/EBITDA is 13.85. The thresholds are as follows: Strongly Undervalued below 8.73, Undervalued between 8.73 and 11.29, Fairly Valued between 16.41 and 11.29, Overvalued between 16.41 and 18.97, and Strongly Overvalued above 18.97. The current Forward EV/EBITDA of 22.68 falls within the Strongly Overvalued range.

28.49

EV/EBIT

Oracle Corp. (ORCL) has a current EV/EBIT of 28.49. The 5-year average EV/EBIT is 15.76. The thresholds are as follows: Strongly Undervalued below 8.42, Undervalued between 8.42 and 12.09, Fairly Valued between 19.43 and 12.09, Overvalued between 19.43 and 23.10, and Strongly Overvalued above 23.10. The current Forward EV/EBIT of 28.49 falls within the Strongly Overvalued range.

10.47

Oracle Corp. (ORCL) has a current PS of 10.47. The 5-year average PS is 5.62. The thresholds are as follows: Strongly Undervalued below 2.77, Undervalued between 2.77 and 4.19, Fairly Valued between 7.04 and 4.19, Overvalued between 7.04 and 8.47, and Strongly Overvalued above 8.47. The current Forward PS of 10.47 falls within the Strongly Overvalued range.

27.36

P/OCF

Oracle Corp. (ORCL) has a current P/OCF of 27.36. The 5-year average P/OCF is 15.69. The thresholds are as follows: Strongly Undervalued below 8.17, Undervalued between 8.17 and 11.93, Fairly Valued between 19.45 and 11.93, Overvalued between 19.45 and 23.20, and Strongly Overvalued above 23.20. The current Forward P/OCF of 27.36 falls within the Strongly Overvalued range.

-1826.41

P/FCF

Oracle Corp. (ORCL) has a current P/FCF of -1826.41. The 5-year average P/FCF is -16.71. The thresholds are as follows: Strongly Undervalued below -539.30, Undervalued between -539.30 and -278.00, Fairly Valued between 244.58 and -278.00, Overvalued between 244.58 and 505.88, and Strongly Overvalued above 505.88. The current Forward P/FCF of -1826.41 falls within the Strongly Undervalued range.

Oracle Corp (ORCL) has a current Price-to-Book (P/B) ratio of 34.08. Compared to its 3-year average P/B ratio of 45.50 , the current P/B ratio is approximately -25.11% higher. Relative to its 5-year average P/B ratio of 20.81, the current P/B ratio is about 63.76% higher. Oracle Corp (ORCL) has a Forward Free Cash Flow (FCF) yield of approximately -0.06%. Compared to its 3-year average FCF yield of 2.66%, the current FCF yield is approximately -102.12% lower. Relative to its 5-year average FCF yield of 3.57% , the current FCF yield is about -101.58% lower.

34.08

P/B

Median3y

45.50

Median5y

20.81

-0.06

FCF Yield

Median3y

2.66

Median5y

3.57

Competitors Valuation Multiple

The average P/S ratio for ORCL's competitors is 20.79, providing a benchmark for relative valuation. Oracle Corp Corp (ORCL) exhibits a P/S ratio of 10.47, which is -49.64% above the industry average. Given its robust revenue growth of 11.31%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Palantir Technologies Inc

Performance Decomposition

Market capitalization of ORCL increased by 76.12% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 34.19 to 57.21.

The secondary factor is the Revenue Growth, contributed 11.31%to the performance.

Overall, the performance of ORCL in the past 1 year is driven by P/E Change. Which is more unsustainable.

11.31%

14.29B → 15.90B

Revenue Growth

-2.50%

22.40 → 21.84

Margin Expansion

67.31%

34.19 → 57.21

P/E Change

76.12%