Oracle Return On Equity vs. Current Valuation
| ORC Stock | EUR 164.14 2.66 1.65% |
For Oracle profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Oracle to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Oracle utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Oracle's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Oracle over time as well as its relative position and ranking within its peers.
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Oracle Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Oracle's current stock value. Our valuation model uses many indicators to compare Oracle value to that of its competitors to determine the firm's financial worth. Oracle is considered to be number one stock in return on equity category among its peers. It also is rated top company in current valuation category among its peers reporting about 389,894,538,162 of Current Valuation per Return On Equity. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Oracle's earnings, one of the primary drivers of an investment's value.Oracle Current Valuation vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.73 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Oracle |
| = | 284.66 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Oracle Current Valuation vs Competition
Oracle is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Software - Infrastructure industry is now estimated at about 337.5 Billion. Oracle totals roughly 284.66 Billion in current valuation claiming about 84% of equities listed under Software - Infrastructure industry.
Oracle Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Oracle, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Oracle will eventually generate negative long term returns. The profitability progress is the general direction of Oracle's change in net profit over the period of time. It can combine multiple indicators of Oracle, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Oracle Corporation provides products and services that address enterprise information technology environments worldwide. The company was founded in 1977 and is headquartered in Redwood Shores, California. ORACLE CORP operates under Software - Infrastructure classification in Germany and is traded on Frankfurt Stock Exchange. It employs 136000 people.
Oracle Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Oracle. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Oracle position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Oracle's important profitability drivers and their relationship over time.
Use Oracle in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Oracle position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Oracle will appreciate offsetting losses from the drop in the long position's value.Oracle Pair Trading
Oracle Pair Trading Analysis
The ability to find closely correlated positions to Oracle could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Oracle when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Oracle - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Oracle to buy it.
The correlation of Oracle is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Oracle moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Oracle moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Oracle can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Oracle position
In addition to having Oracle in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Materials ETFs Thematic Idea Now
Materials ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Materials ETFs theme has 51 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Materials ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Oracle Stock
When determining whether Oracle is a strong investment it is important to analyze Oracle's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Oracle's future performance. For an informed investment choice regarding Oracle Stock, refer to the following important reports:Check out Your Equity Center. For more detail on how to invest in Oracle Stock please use our How to Invest in Oracle guide.You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
To fully project Oracle's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Oracle at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Oracle's income statement, its balance sheet, and the statement of cash flows.