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 29.34 is considered Fairly compared with the five-year average of 20.45. The fair price of Oracle Corp (ORCL) is between 157.90 to 231.03 according to relative valuation methord.
Relative Value
Fair Zone
157.90-231.03
Current Price：207.73
Fair
30.27
PE
1Y
3Y
5Y
Trailing
Forward
18.47
EV/EBITDA
Oracle Corp. (ORCL) has a current EV/EBITDA of 18.47. The 5-year average EV/EBITDA is 14.59. The thresholds are as follows: Strongly Undervalued below 8.14, Undervalued between 8.14 and 11.36, Fairly Valued between 17.81 and 11.36, Overvalued between 17.81 and 21.03, and Strongly Overvalued above 21.03. The current Forward EV/EBITDA of 18.47 falls within the Overvalued range.
23.46
EV/EBIT
Oracle Corp. (ORCL) has a current EV/EBIT of 23.46. The 5-year average EV/EBIT is 16.82. The thresholds are as follows: Strongly Undervalued below 7.52, Undervalued between 7.52 and 12.17, Fairly Valued between 21.47 and 12.17, Overvalued between 21.47 and 26.12, and Strongly Overvalued above 26.12. The current Forward EV/EBIT of 23.46 falls within the Overvalued range.
8.39
PS
Oracle Corp. (ORCL) has a current PS of 8.39. The 5-year average PS is 5.99. The thresholds are as follows: Strongly Undervalued below 2.31, Undervalued between 2.31 and 4.15, Fairly Valued between 7.83 and 4.15, Overvalued between 7.83 and 9.67, and Strongly Overvalued above 9.67. The current Forward PS of 8.39 falls within the Overvalued range.
20.58
P/OCF
Oracle Corp. (ORCL) has a current P/OCF of 20.58. The 5-year average P/OCF is 16.52. The thresholds are as follows: Strongly Undervalued below 7.58, Undervalued between 7.58 and 12.05, Fairly Valued between 20.99 and 12.05, Overvalued between 20.99 and 25.46, and Strongly Overvalued above 25.46. The current Forward P/OCF of 20.58 falls within the Historic Trend Line -Fairly Valued range.
-69.32
P/FCF
Oracle Corp. (ORCL) has a current P/FCF of -69.32. The 5-year average P/FCF is -9.85. The thresholds are as follows: Strongly Undervalued below -439.18, Undervalued between -439.18 and -224.51, Fairly Valued between 204.82 and -224.51, Overvalued between 204.82 and 419.48, and Strongly Overvalued above 419.48. The current Forward P/FCF of -69.32 falls within the Historic Trend Line -Fairly Valued range.
Oracle Corp (ORCL) has a current Price-to-Book (P/B) ratio of 24.43. Compared to its 3-year average P/B ratio of 51.88 , the current P/B ratio is approximately -52.90% higher. Relative to its 5-year average P/B ratio of 21.60, the current P/B ratio is about 13.12% higher. Oracle Corp (ORCL) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.31%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.13% , the current FCF yield is about -100.00% lower.
25.21
P/B
Median3y
51.88
Median5y
21.60
-0.99
FCF Yield
Median3y
2.31
Median5y
3.13
Competitors Valuation Multiple
The average P/S ratio for ORCL's competitors is 5.68, providing a benchmark for relative valuation. Oracle Corp Corp (ORCL) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 12.17%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ORCL increased by 28.62% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 39.00 to 49.63.
The secondary factor is the Revenue Growth, contributed 12.17%to the performance.
Overall, the performance of ORCL in the past 1 year is driven by P/E Change. Which is more unsustainable.
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