Oracle Corporation

XTRA:ORC Stock Report

Market Cap: €511.7b

Oracle Valuation

Is ORC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ORC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ORC (€186.48) is trading below our estimate of fair value (€276.99)

Significantly Below Fair Value: ORC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ORC?

Key metric: As ORC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ORC. This is calculated by dividing ORC's market cap by their current earnings.
What is ORC's PE Ratio?
PE Ratio48.5x
EarningsUS$10.98b
Market CapUS$532.85b

Price to Earnings Ratio vs Peers

How does ORC's PE Ratio compare to its peers?

The above table shows the PE ratio for ORC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average86.6x
SAP SAP
95.7x40.8%€262.8b
NOW ServiceNow
163.8x21.7%US$218.8b
IXX init innovation in traffic systems
19.4x27.8%€354.6m
NEM Nemetschek
67.5x18.6%€11.5b
ORC Oracle
48.5x16.5%€532.8b

Price-To-Earnings vs Peers: ORC is good value based on its Price-To-Earnings Ratio (48.5x) compared to the peer average (86.6x).

Price to Earnings Ratio vs Industry

How does ORC's PE Ratio compare vs other companies in the European Software Industry?

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ORC 48.5xIndustry Avg. 28.1xNo. of Companies19PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ORC is expensive based on its Price-To-Earnings Ratio (48.5x) compared to the European Software industry average (28.1x).

Price to Earnings Ratio vs Fair Ratio

What is ORC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ORC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio48.5x
Fair PE Ratio51.6x

Price-To-Earnings vs Fair Ratio: ORC is good value based on its Price-To-Earnings Ratio (48.5x) compared to the estimated Fair Price-To-Earnings Ratio (51.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ORC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€186.48
€163.63
-12.3%
14.9%€195.87€98.85n/a30
Nov ’25€158.34
€165.74
+4.7%
14.9%€198.40€100.13n/a30
Oct ’25€150.72
€158.39
+5.1%
15.3%€188.60€96.99n/a28
Sep ’25€126.84
€136.80
+7.9%
13.5%€160.76€90.02n/a27
Aug ’25€128.90
€136.80
+6.1%
13.5%€160.76€90.02n/a27
Jul ’25€133.32
€137.55
+3.2%
14.0%€162.86€91.20n/a27
Jun ’25€106.24
€126.43
+19.0%
13.1%€147.47€76.50n/a28
May ’25€107.00
€126.51
+18.2%
12.9%€147.73€76.63n/a29
Apr ’25€116.28
€126.51
+8.8%
12.9%€147.73€76.63n/a29
Mar ’25€104.28
€114.34
+9.7%
12.5%€138.03€76.38n/a30
Feb ’25€105.62
€114.34
+8.3%
12.5%€138.03€76.38n/a30
Jan ’25€96.06
€111.46
+16.0%
13.6%€135.08€74.74n/a29
Dec ’24€106.86
€117.22
+9.7%
13.9%€137.82€69.83n/a29
Nov ’24€99.47
€120.03
+20.7%
13.8%€140.67€71.27€158.3430
Oct ’24€100.26
€121.95
+21.6%
12.7%€141.63€71.76€150.7230
Sep ’24€112.16
€116.62
+4.0%
13.7%€137.78€69.81€126.8429
Aug ’24€106.70
€114.84
+7.6%
13.6%€136.41€69.11€128.9029
Jul ’24€109.90
€114.72
+4.4%
14.5%€138.02€69.93€133.3228
Jun ’24€98.10
€91.14
-7.1%
14.1%€112.28€62.69€106.2427
May ’24€85.76
€88.46
+3.1%
14.1%€109.48€61.12€107.0027
Apr ’24€84.69
€88.84
+4.9%
13.7%€110.63€61.77€116.2827
Mar ’24€80.75
€84.39
+4.5%
17.4%€110.52€50.66€104.2828
Feb ’24€81.68
€84.39
+3.3%
17.4%€110.52€50.66€105.6228
Jan ’24€75.83
€84.25
+11.1%
17.1%€113.21€51.89€96.0626
Dec ’23€79.33
€86.81
+9.4%
19.0%€121.67€55.76€106.8626
Nov ’23€78.53
€86.81
+10.5%
19.0%€121.67€55.76€99.4726

Analyst Forecast: Target price is lower than the current share price.

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