Oracle Valuation
| ORCL34 Stock | BRL 100.50 0.30 0.30% |
At this time, the company appears to be overvalued. Oracle holds a recent Real Value of R$83.41 per share. The prevailing price of the company is R$100.5. Our model determines the value of Oracle from analyzing the company fundamentals such as Operating Margin of 0.31 %, shares outstanding of 16.18 B, and Return On Equity of 0.73 as well as examining its technical indicators and probability of bankruptcy. In general, most investors support taking in undervalued entities and trading overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
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.
Our valuation method for Oracle is useful when determining the fair value of the Oracle stock, which is usually 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 100.5 | Real 83.41 | Hype 100.5 | Naive 101.91 |
The real value of Oracle Stock, also known as its intrinsic value, is the underlying worth of Oracle Company, which is reflected in its stock price. It is based on Oracle's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Oracle's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Oracle's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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: Oracle Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Oracle's current stock value. Our valuation model uses many indicators to compare Oracle value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Oracle competition to find correlations between indicators driving Oracle's intrinsic value. More Info.Oracle is considered to be number one stock in price to earning category among related companies. It is considered to be number one stock in price to book category among related companies fabricating about 0.64 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Oracle is roughly 1.57 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Oracle by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Oracle's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Oracle's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Oracle's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Oracle and how it compares across the competition.
About Oracle Valuation
The stock valuation mechanism determines the current worth of Oracle on a weekly basis. We use both absolute as well as 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 its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Oracle's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Oracle's related companies.Oracle Corporation provides products and services that address enterprise information technology environments worldwide. The company was founded in 1977 and is headquartered in Redwood Shores, California. ORACLE DRN operates under Software - Infrastructure classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 136000 people.
8 Steps to conduct Oracle's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Oracle's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Oracle's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Oracle's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Oracle's revenue streams: Identify Oracle's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Oracle's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Oracle's growth potential: Evaluate Oracle's management, business model, and growth potential.
- Determine Oracle's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Oracle's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
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 tightly coupled with the direction of predictive economic indicators such as signals in nation. For information on how to trade Oracle Stock refer to our How to Trade Oracle Stock guide.Note that the Oracle information on this page should be used as a complementary analysis to other Oracle's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Complementary Tools for Oracle Stock analysis
When running Oracle's price analysis, check to measure Oracle's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Oracle is operating at the current time. Most of Oracle's value examination focuses on studying past and present price action to predict the probability of Oracle's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Oracle's price. Additionally, you may evaluate how the addition of Oracle to your portfolios can decrease your overall portfolio volatility.
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