Oracle Corporation
Oracle Corporation offers products and services that build, run and support enterprise information technology frameworks worldwide. Its Oracle cloud software as a service offering includes various cloud software applications, including Oracle Fusion cloud enterprise resource planning ERP, Oracle Fu…
Oracle Corporation offers products and services that build, run and support enterprise information technology frameworks worldwide. Its Oracle cloud software as a service offering includes various cloud software applications, including Oracle Fusion cloud enterprise resource planning ERP, Oracle Fusion cloud enterprise performance management EPM, Oracle Fusion cloud supply chain and manufacturing management SCM, Oracle Fusion cloud human capital management HCM, and NetSuite applications suite, Oracle Health applications, as well as Oracle Fusion Sales, Service, and Marketing. The company also offers cloud-based industry solutions for various industries; Oracle cloud license and on-premise license; and Oracle license support services. In addition, it provides cloud and license business' infrastructure technologies, such as the Oracle Database and MySQL Database; Java, a software development language; and middleware, including development tools and others. The company's cloud and license business' infrastructure technologies also comprise cloud-based compute, storage, and networking capabilities; and Oracle autonomous database, as well as AI, Internet-of-Things, machine learning, digital assistant, and blockchain. Further, it provides hardware products and other hardware-related software offerings, including Oracle engineered systems, enterprise servers, storage solutions, industry-specific hardware, virtualization software, operating systems, management software, and related hardware support services, and consulting and advanced customer services. It markets and sells its cloud, license, hardware, support, and services offerings directly to businesses in various industries, government agencies, and educational institutions, as well as through indirect channels. Oracle Corporation has a strategic alliance with Metron, Inc. The company was founded in 1977 and is headquartered in Austin, Texas.Priced within the modelled range
5-year outlook: Not shown because confidence is low: EV/EBITDA (12x) agrees.
Other models: USD 78.93–111.26 (median 95.09). The recommended value is 37% above that median, so treat the upside with extra caution.
Why: Free cash flow cannot be used (negative or far below earnings, with too little history to normalise it), so value is based on reinvestment-adjusted earnings.
Details and the full model are below.
Market price within modeled range
Earnings-based DCF using TTM through 31 Aug 2026 net income, of which 70% is treated as distributable after reinvestment, with no extra debt or cash adjustment because net income is already after interest. Used because free cash flow or dividends do not give a usable base. Base assumptions are 25.19% growth, 3.25% terminal growth, and 11.5% discount; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 25.19%, discount rate 11.50%, terminal growth 3.25% (sector defaults). See a worked example.
Blended growth assumption: 25.2% (sector default 8.5%, own revenue history 12.2%, analyst revenue consensus 40.0%).
Analyst consensus expects revenue growth of 45.7% a year; the growth assumption used is 25.2%.
Adjust assumptions
Why this model: Free cash flow cannot be used (negative or far below earnings, with too little history to normalise it), so value is based on reinvestment-adjusted earnings.
Compare models- Recommended: Earnings-based DCF — USD 130.25 (+10.2%)
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EPS-based Gordon proxy
— USD 78.93 (-33.2%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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FCFF (steady state)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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EV/EBITDA (12x)
— USD 111.26 (-5.8%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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EV/Sales (Rule of 40)
— USD 319.27 (+170.2%)
Not used: Used only when cash-flow models land far below the price; here they do not.
| Bear USD 98.56 | -19.9% |
| Base USD 130.25 | 9.3% |
| Bull USD 183.11 | 35.5% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 118.16 the market implies about this annual free-cash-flow growth for 5 years (terminal 3.3%, discount 11.5%).
Compare: the market implies 22.5% a year, this model assumes 25.2%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Earnings-based DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 9.5% | 10.5% | 11.5% | 12.5% | 13.5% |
|---|---|---|---|---|---|
| 21.2% | 151.34 | 129.13 | 112.35 | 99.23 | 88.71 |
| 23.2% | 163.30 | 139.22 | 121.02 | 106.80 | 95.40 |
| 25.2% | 176.04 | 149.95 | 130.25 | 114.85 | 102.51 |
| 27.2% | 189.58 | 161.36 | 140.05 | 123.40 | 110.05 |
| 29.2% | 203.97 | 173.48 | 150.46 | 132.48 | 118.06 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 78 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 2 of 5 years | 8 / 20 |
| Growth | revenue +9.5% a year | 20 / 20 |
| Balance sheet | net debt 3.2x EBITDA | 10 / 20 |
| Margins | EBITDA margin 53% | 20 / 20 |
Peers in Information Technology
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| ORCL (this company) | USD 118.16 | 9.3% | 18.7 | 5.3 | 1.7% | 78 |
| SMCI Supermicro | USD 28.56 | 48.1% | 8.9 | 1.4 | – | 68 |
| ADBE Adobe Inc. | USD 240.53 | 45.0% | 12.9 | 8.0 | – | 100 |
| SNDK Sandisk | USD 873.36 | 44.1% | 6.4 | 6.9 | – | 76 |
| IT Gartner | USD 190.76 | 38.1% | 12.8 | – | – | 92 |
| INTU Intuit | USD 346.10 | 33.6% | 20.6 | 5.0 | 1.4% | 100 |
| HPQ HP Inc. | USD 29.33 | 31.9% | 11.1 | – | 4.0% | 64 |
| GIB-A.TO CGI Inc. | CAD 113.61 | 28.1% | 13.7 | 2.3 | 0.6% | 90 |
| FSLR First Solar | USD 196.17 | 25.8% | 11.4 | 1.9 | – | 84 |
| Peer median | 12.1 | 3.6 | ||||
Dividends
Paid in the last 12 months: USD 2.00 per share · yield 1.69% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 2.000 |
| 2025 | 1.900 |
| 2024 | 1.600 |
| 2023 | 1.520 |
| 2022 | 1.280 |
| 2021 | 1.200 |
Trailing 12-month financials
TTM through 31 Aug 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 12:56
| Revenue | USD 71,777,000,000 |
|---|---|
| EBITDA | USD 37,719,000,000 |
| EBIT | USD 26,838,000,000 |
| Net income | USD 18,920,000,000 |
| Free cash flow | USD -28,720,000,000 |
| Capital expenditures | USD 75,660,000,000 |
| Debt | USD 155,931,000,000 |
| Cash | USD 37,077,000,000 |
| Working capital | USD 8,116,000,000 |
| Shares outstanding | 3,000,000,000 |
| Reported dividends per share | USD 1.9797 |