Oracle Corporation (ORCL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-118.8%

-$22.96

vs $122.36 price

Levered DCF

-$26.53

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.51

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	41.78×	37.11×	30.76×	33.63×	28.88×	17.04×	16.79×	16.59×
P/B	16.8×	22.57×	36.95×	266.18×	-31.22×	44.74×	14.11×	8.44×
P/S	10.6×	8.04×	6.07×	5.72×	4.58×	5.79×	4.36×	4.65×
EV / EBITDA	25.06×	23.21×	18.96×	19.55×	18.38×	15.67×	12.02×	12.71×
Gross margin	65.2%	70.5%	71.4%	72.8%	79.1%	80.6%	79.7%	79.8%
Operating margin	30.8%	30.8%	29.0%	26.2%	25.7%	37.6%	35.6%	34.3%
Net margin	25.4%	21.7%	19.8%	17.0%	15.8%	34.0%	25.9%	28.1%
Current ratio	1.12×	0.75×	0.72×	0.91×	1.62×	2.3×	3.03×	2.49×
Debt / equity	3.67×	5.09×	10.85×	84.33×	-12.2×	16.08×	5.93×	2.58×
Interest coverage	4.52×	4.94×	4.37×	3.74×	3.97×	6.09×	6.97×	6.5×
Dividend yield	0.8%	1.0%	1.4%	1.3%	1.8%	1.3%	1.8%	1.6%
Payout ratio	33.9%	38.1%	42.0%	43.1%	51.5%	22.3%	30.3%	26.5%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	40.2%	60.8%	120.3%	792.5%	-108.0%	262.4%	83.9%	50.9%
Return on invested capital	8.0%	10.9%	11.3%	10.6%	10.3%	13.2%	11.6%	12.9%
Return on assets	6.5%	7.4%	7.4%	6.3%	6.1%	10.5%	8.8%	10.2%
Free cash flow yield	-3.3%	-0.1%	3.7%	3.0%	2.6%	5.9%	6.8%	7.0%
Earnings yield	2.4%	2.7%	3.3%	3.0%	3.5%	5.9%	5.9%	6.0%
Enterprise value	$839.1B	$555B	$405.6B	$366.3B	$248.7B	$288.5B	$204.7B	$219.5B
Net debt / EBITDA	3.73×	3.9×	3.93×	4.31×	4.03×	2.94×	2.02×	2.06×
Cash conversion cycle (days)	-115	-56	-3	26	10	21	32	21