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 (€162.72) is trading below our estimate of fair value (€298.07)

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 Ratio40.1x
EarningsUS$11.62b
Market CapUS$466.08b

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 Average87x
SAP SAP
101.1x41.4%€277.5b
NOW ServiceNow
162.8x20.0%US$218.7b
IXX init innovation in traffic systems
20x27.8%€365.4m
NEM Nemetschek
63.9x17.3%€10.9b
ORC Oracle
40.1x16.6%€466.1b

Price-To-Earnings vs Peers: ORC is good value based on its Price-To-Earnings Ratio (40.1x) compared to the peer average (87.2x).


Price to Earnings Ratio vs Industry

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

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ORC 40.1xIndustry Avg. 26.3xNo. of Companies19PE020406080100+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ORC is expensive based on its Price-To-Earnings Ratio (40.1x) compared to the European Software industry average (26.3x).


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 Ratio40.1x
Fair PE Ratio50.9x

Price-To-Earnings vs Fair Ratio: ORC is good value based on its Price-To-Earnings Ratio (40.1x) compared to the estimated Fair Price-To-Earnings Ratio (50.9x).


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€162.72
€187.41
+15.2%
10.5%€209.77€133.49n/a30
Dec ’25€175.28
€174.79
-0.3%
12.3%€203.90€133.39n/a29
Nov ’25€157.42
€165.74
+5.3%
14.9%€198.40€100.13n/a30
Oct ’25€150.32
€158.39
+5.4%
15.3%€188.60€96.99n/a28
Sep ’25€126.56
€136.80
+8.1%
13.5%€160.76€90.02n/a27
Aug ’25€126.92
€136.80
+7.8%
13.5%€160.76€90.02n/a27
Jul ’25€131.80
€137.55
+4.4%
14.0%€162.86€91.20n/a27
Jun ’25€107.28
€126.43
+17.9%
13.1%€147.47€76.50n/a28
May ’25€107.38
€126.51
+17.8%
12.9%€147.73€76.63n/a29
Apr ’25€116.36
€126.51
+8.7%
12.9%€147.73€76.63n/a29
Mar ’25€105.00
€114.34
+8.9%
12.5%€138.03€76.38n/a30
Feb ’25€106.00
€114.34
+7.9%
12.5%€138.03€76.38n/a30
Jan ’25€95.94
€111.46
+16.2%
13.6%€135.08€74.74€161.3029
Dec ’24€106.40
€117.22
+10.2%
13.9%€137.82€69.83€175.2829
Nov ’24€100.38
€120.03
+19.6%
13.8%€140.67€71.27€157.4230
Oct ’24€100.64
€121.95
+21.2%
12.7%€141.63€71.76€150.3230
Sep ’24€112.22
€116.62
+3.9%
13.7%€137.78€69.81€126.5629
Aug ’24€106.70
€114.84
+7.6%
13.6%€136.41€69.11€126.9229
Jul ’24€107.94
€114.72
+6.3%
14.5%€138.02€69.93€131.8028
Jun ’24€98.29
€91.14
-7.3%
14.1%€112.28€62.69€107.2827
May ’24€85.91
€88.46
+3.0%
14.1%€109.48€61.12€107.3827
Apr ’24€85.00
€88.84
+4.5%
13.7%€110.63€61.77€116.3627
Mar ’24€82.70
€84.39
+2.0%
17.4%€110.52€50.66€105.0028
Feb ’24€81.02
€84.39
+4.2%
17.4%€110.52€50.66€106.0028
Jan ’24€76.04
€84.25
+10.8%
17.1%€113.21€51.89€95.9426

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/02 03:26
End of Day Share Price 2025/01/02 00:00
Earnings2024/11/30
Annual Earnings2024/05/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Oracle Corporation is covered by 91 analysts. 34 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jamie SheltonArete Research Services LLP
Adam ShepherdArete Research Services LLP
Joseph BonnerArgus Research Company