Oracle Corporation

NYSE:ORCL Stock Report

Market Cap: US$472.1b

Oracle Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 ORCL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ORCL ($169.66) is trading below our estimate of fair value ($279.36)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ORCL. This is calculated by dividing ORCL's market cap by their current earnings.
What is ORCL's PE Ratio?
PE Ratio40.8x
EarningsUS$11.62b
Market CapUS$472.10b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ORCL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average74.5x
NOW ServiceNow
168.5x22.1%US$221.8b
PANW Palo Alto Networks
44.8x-3.5%US$124.3b
MSFT Microsoft
35.9x12.6%US$3.2t
FTNT Fortinet
48.7x10.6%US$72.7b
ORCL Oracle
40.8x16.6%US$472.1b

Price-To-Earnings vs Peers: ORCL is good value based on its Price-To-Earnings Ratio (40.8x) compared to the peer average (74.5x).

Price to Earnings Ratio vs Industry

How does ORCL's PE Ratio compare vs other companies in the US Software Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
YXT YXT.COM Group Holding
2.1xn/aUS$132.17m
NISN Nisun International Enterprise Development Group
1.4xn/aUS$23.88m
NXTT Next Technology Holding
0.5xn/aUS$13.26m
ULY Urgent.ly
0.07x-13.0%US$7.08m
ORCL 40.8xIndustry Avg. 40.8xNo. of Companies12PE020406080100+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ORCL is good value based on its Price-To-Earnings Ratio (40.8x) compared to the US Software industry average (40.8x).

Price to Earnings Ratio vs Fair Ratio

What is ORCL'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.

ORCL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio40.8x
Fair PE Ratio58.4x

Price-To-Earnings vs Fair Ratio: ORCL is good value based on its Price-To-Earnings Ratio (40.8x) compared to the estimated Fair Price-To-Earnings Ratio (58.4x).

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 ORCL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$169.66
US$196.55
+15.9%
10.5%US$220.00US$140.00n/a30
Dec ’25US$184.84
US$183.45
-0.8%
12.3%US$214.00US$140.00n/a29
Nov ’25US$170.02
US$178.77
+5.1%
14.9%US$214.00US$108.00n/a30
Oct ’25US$167.16
US$176.36
+5.5%
15.3%US$210.00US$108.00n/a28
Sep ’25US$141.29
US$148.92
+5.4%
13.5%US$175.00US$98.00n/a27
Aug ’25US$137.51
US$148.92
+8.3%
13.5%US$175.00US$98.00n/a27
Jul ’25US$143.09
US$147.81
+3.3%
14.0%US$175.00US$98.00n/a27
Jun ’25US$117.19
US$137.17
+17.1%
13.1%US$160.00US$83.00n/a28
May ’25US$114.63
US$137.02
+19.5%
12.9%US$160.00US$83.00n/a29
Apr ’25US$125.48
US$137.02
+9.2%
12.9%US$160.00US$83.00n/a29
Mar ’25US$113.78
US$124.26
+9.2%
12.5%US$150.00US$83.00n/a30
Feb ’25US$115.53
US$124.26
+7.6%
12.5%US$150.00US$83.00n/a30
Jan ’25US$105.43
US$123.77
+17.4%
13.6%US$150.00US$83.00n/a29
Dec ’24US$117.16
US$127.58
+8.9%
13.9%US$150.00US$76.00US$184.8429
Nov ’24US$105.75
US$127.99
+21.0%
13.8%US$150.00US$76.00US$170.0230
Oct ’24US$105.92
US$129.15
+21.9%
12.7%US$150.00US$76.00US$167.1630
Sep ’24US$120.93
US$126.97
+5.0%
13.7%US$150.00US$76.00US$141.2929
Aug ’24US$117.91
US$126.28
+7.1%
13.6%US$150.00US$76.00US$137.5129
Jul ’24US$119.09
US$124.68
+4.7%
14.5%US$150.00US$76.00US$143.0928
Jun ’24US$105.99
US$97.41
-8.1%
14.1%US$120.00US$67.00US$117.1927
May ’24US$94.87
US$96.96
+2.2%
14.1%US$120.00US$67.00US$114.6327
Apr ’24US$92.92
US$96.37
+3.7%
13.7%US$120.00US$67.00US$125.4827
Mar ’24US$86.34
US$91.63
+6.1%
17.4%US$120.00US$55.00US$113.7828
Feb ’24US$90.05
US$91.63
+1.7%
17.4%US$120.00US$55.00US$115.5328
Jan ’24US$81.74
US$89.31
+9.3%
17.1%US$120.00US$55.00US$105.4326
Dec ’23US$84.11
US$85.62
+1.8%
19.0%US$120.00US$55.00US$117.1626

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 Analysis2024/12/20 04:52
End of Day Share Price 2024/12/20 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 93 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