Oracle Valuation
| ORCL Stock | USD 182.70 7.67 4.03% |
At this time, the company appears to be overvalued. Oracle holds a recent Real Value of $165.06 per share. The prevailing price of the company is $182.7. Our model determines the value of Oracle from analyzing the company fundamentals such as Return On Equity of 1.56, operating margin of 0.31 %, and Shares Outstanding of 2.77 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Oracle's valuation include:
Price Book 48.1631 | Enterprise Value 594.5 B | Enterprise Value Ebitda 26.8887 | Price Sales 9.8026 | Forward PE 29.9401 |
Overvalued
Today
Please note that Oracle's price fluctuation is very steady at this time. Calculation of the real value of Oracle is based on 3 months time horizon. Increasing Oracle's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Oracle stock is determined by what a typical buyer is willing to pay for full or partial control of Oracle. Since Oracle is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Oracle Stock. However, Oracle's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 182.7 | Real 165.06 | Target 123.85 | Hype 184.5 | Naive 185.27 |
The intrinsic value of Oracle's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Oracle's stock price.
Estimating the potential upside or downside of Oracle helps investors to forecast how Oracle stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Oracle more accurately as focusing exclusively on Oracle's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Oracle's intrinsic value based on its ongoing forecasts of Oracle's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Oracle's closest peers.
Oracle Cash |
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Oracle Valuation Trend
Knowing Oracle's actual value is paramount for traders when making sound investment determinations. Using both Oracle's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Oracle Revenue by Product
Oracle Total Value Analysis
Oracle is now forecasted to have valuation of 594.54 B with market capitalization of 527.53 B, debt of 94.47 B, and cash on hands of 21.38 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Oracle fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
594.54 B | 527.53 B | 94.47 B | 21.38 B |
Oracle Investor Information
About 42.0% of the company outstanding shares are owned by corporate insiders. The company has Price/Earnings To Growth (PEG) ratio of 2.28. Oracle last dividend was issued on the 10th of October 2024. The entity had 2:1 split on the 13th of October 2000. Based on the measurements of operating efficiency obtained from Oracle's historical financial statements, Oracle may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.23 | 0.2899 |
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| Total Cash From Operating Activities | 19.6 B | 18.7 B |
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| Operating Income | 16.1 B | 15.4 B |
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Oracle Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Oracle has an asset utilization ratio of 37.57 percent. This suggests that the Company is making $0.38 for each dollar of assets. An increasing asset utilization means that Oracle is more efficient with each dollar of assets it utilizes for everyday operations.Oracle Ownership Allocation
Oracle owns a total of 2.77 Billion outstanding shares. Oracle has significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. On October 8, 2024, Representative Ro Khanna of US Congress acquired under $15k worth of Oracle's common stock.Oracle Profitability Analysis
The company reported the previous year's revenue of 52.96 B. Net Income was 10.47 B with profit before overhead, payroll, taxes, and interest of 36.39 B.Oracle Past Distributions to stockholders
About Oracle Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Oracle. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Oracle based exclusively on its fundamental and basic technical indicators. By analyzing Oracle's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Oracle's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Oracle. We calculate exposure to Oracle's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Oracle's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 34.8 B | 36.5 B | |
| Pretax Profit Margin | 0.22 | 0.23 | |
| Operating Profit Margin | 0.29 | 0.23 | |
| Net Profit Margin | 0.20 | 0.16 | |
| Gross Profit Margin | 0.71 | 0.87 |
A single share of Oracle represents a small ownership stake in the entity. As a stockholder of Oracle, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Oracle Dividends Analysis For Valuation
The value of Dividends Paid is estimated to slide to about 2.6 B. The value of Dividend Yield is estimated to slide to 0.01. Earnings Yield is expected to rise to 0.03 this year, although the value of Retained Earnings are projected to rise to (21.5 B).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 4.4 B | 2.6 B | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.42 | 0.23 | |
| Dividend Paid And Capex Coverage Ratio | 1.66 | 1.58 |
There are various types of dividends Oracle can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Oracle shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Oracle directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Oracle pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Oracle by the value of the dividends paid out.
Oracle Growth Indicators
Investing in growth stocks can be very risky. If the company such as Oracle does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 2.8 B | |
| Quarterly Earnings Growth Y O Y | 0.198 | |
| Forward Price Earnings | 29.9401 |
Oracle Current Valuation Indicators
Oracle's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Oracle's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Oracle, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Oracle's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Oracle's worth.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 to better understand how to build diversified portfolios, which includes a position in Oracle. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. For more information on how to buy Oracle Stock please use our How to buy in Oracle Stock guide.You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
Is Systems Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Oracle. If investors know Oracle will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Oracle listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.198 | Dividend Share 1.6 | Earnings Share 3.87 | Revenue Per Share 19.553 | Quarterly Revenue Growth 0.069 |
The market value of Oracle is measured differently than its book value, which is the value of Oracle that is recorded on the company's balance sheet. Investors also form their own opinion of Oracle's value that differs from its market value or its book value, called intrinsic value, which is Oracle's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Oracle's market value can be influenced by many factors that don't directly affect Oracle's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Oracle's value and its price as these two are different measures arrived at by different means. Investors typically determine if Oracle is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Oracle's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.