Oracle Valuation
| ORCL Stock | USD 114.89 0.20 0.17% |
At this time, the company appears to be undervalued. Oracle holds a recent Real Value of $120.28 per share. The prevailing price of the company is $114.89. Our model determines the value of Oracle from analyzing the company fundamentals such as Shares Outstanding of 2.75 B, operating margin of 0.29 %, and Return On Equity of 0.5 as well as examining its technical indicators and probability of bankruptcy. In general, most investors support picking up undervalued entities and discarding overvalued entities since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Oracle's valuation include:
Price Book 59.1984 | Enterprise Value 393.4 B | Enterprise Value Ebitda 19.7287 | Price Sales 6.3392 | Forward PE 19.2678 |
Undervalued
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 114.89 | Real 120.28 | Target 123.85 | Hype 115.1 | Naive 117.74 |
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: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Oracle's intrinsic value based on its ongoing forecasts of Oracle's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Oracle's closest peers. When choosing an evaluation method for Oracle, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Oracle Investments |
|
Oracle Valuation Trend
Knowing Oracle's actual value is paramount for traders to make sound investment determinations. Oracle's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Oracle's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Oracle's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Oracle Market Cap
Oracle is regarded second in market capitalization category among related companies. Market capitalization of Information Technology industry is now estimated at about 3.9 Trillion. Oracle holds roughly 316.33 Billion in market capitalization claiming about 8% of equities under Information Technology industry.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 regarded second 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 1.51 of Price To Book per Price To Earning. Price To Book Ratio is expected to rise to 173.46 this year. 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.| Last Reported | Projected for Next Year | ||
| Gross Profit | 41.8 B | 43.9 B | |
| Pretax Profit Margin | 0.16 | 0.23 | |
| Operating Profit Margin | 0.25 | 0.23 | |
| Net Profit Margin | 0.15 | 0.16 | |
| Gross Profit Margin | 0.84 | 0.88 |
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.
A single share of Oracle represents a small ownership stake in the entity. As a stockholder of Oracle, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Oracle Dividends Analysis For Valuation
The value of Dividends Paid is estimated to slide to about 2.5 B. The value of Dividend Yield is estimated to slide to 0.01. Earnings Yield is expected to rise to 0.03 this year, although the value of Retained Earnings are projected to rise to (30.2 B).
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 4.2 B | 2.5 B | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.39 | 0.22 | |
| Dividend Paid And Capex Coverage Ratio | (3.07) | (2.92) |
There are various types of dividends Oracle can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Oracle shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Oracle directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Oracle pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Oracle by the value of the dividends paid out.
Oracle Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Oracle does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 2.8 B | |
| Quarterly Earnings Growth Y O Y | 0.25 | |
| Forward Price Earnings | 19.2678 |
Oracle Current Valuation Indicators
Valuation refers to the process of determining the present value of Oracle and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Oracle we look at many different elements of the entity such as Oracle's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Oracle's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Oracle's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Oracle, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Oracle's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Oracle's worth.When determining whether Oracle is a strong investment it is important to analyze Oracle's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Oracle's future performance. For an informed investment choice regarding Oracle Stock, refer to the following important reports: 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 main economic indicators. For more information on how to buy Oracle Stock please use our How to buy in 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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.
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |
Is Oracle's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Oracle. If investors know Oracle will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Oracle listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.25 | Dividend Share 1.6 | Earnings Share 3.79 | Revenue Per Share 19.215 | Quarterly Revenue Growth 0.071 |
The market value of Oracle is measured differently than its book value, which is the value of Oracle that is recorded on the company's balance sheet. Investors also form their own opinion of Oracle's value that differs from its market value or its book value, called intrinsic value, which is Oracle's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Oracle's market value can be influenced by many factors that don't directly affect Oracle's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Oracle's value and its price as these two are different measures arrived at by different means. Investors typically determine if Oracle is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Oracle's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.