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Oracle Corporation — Intrinsic Value & Fair Price

ORCL
NYSETechnologySoftware - InfrastructureCIK 0001341439oracle.comAbout ORCL
Last close · Oct 16, 2026128.22−6.25 (−4.65%)
Market cap$387.7B
Model value · P/E · peers
183.34
Oracle closed at $128.22 — undervalued by 30% vs model.
163.15the model's range238.35

P/E · peers leads because DCF · Perpetuity growth · 5y could not lead: the cash-flow gate is shut (an operating loss, or three years of free cash flow summing below zero). From its peers' median P/E.

Other models
11.15 – 891.55
Wall St. target
210.00 39% below
Below model, 1y
48 of 87 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
1.56%
Past 2 years
low 0.55%high 1.74%
Dividends per share, a year at a time
$1.20Oct ’21$1.28Oct ’22$1.52Oct ’23$1.60Oct ’24$1.90Oct ’25$2.00TTM
Coverage
—
Raised
11 years in a row
Growth, 5 yrs
10.8% a year
Last change
+25.0% · Apr 2025
Every payment, with ex-dates · latest $0.50, paid Oct 23, 2026

Research on ORCL

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How it is valued

Valued asSoftware
Moderate growth (~13% recent)High profitability (25% net margin)Pays dividendsHighly cyclical earningsHigh leverage (D/E 3.0x)Negative free cash flow
What growth the price implies: the reverse DCF

Key figures

FY2026 · chosen for software companies
Price / sales
5.5×
Revenue growth
17.3%
Gross margin
65.2%
FCF margin
-35.2%
Rule of 40
-17.8%
Operating margin
30.8%
Full financials

Analyst actions

third-party, quoted
09-11Barclays · target252.00
09-11Stifel Nicolaus · target200.00
09-11BMO Capital · target195.00
03-11JP Morgan · “Overweight” from “Neutral”upgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
2 more companies list ORCL as a comparable
Side by side:vs MSFT

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just ORCL. No account.

About Oracle

Oracle Corporation, a global technology giant, provides a comprehensive suite of enterprise information technology solutions worldwide. A core part of its portfolio comprises cloud-based software-as-a-service (SaaS) applications, including the Oracle Fusion Cloud suite covering enterprise resource planning (ERP), enterprise performance management (EPM), supply chain and manufacturing management (SCM), and human capital management (HCM). This also extends to specialized offerings like Oracle Advertising, the NetSuite application suite, and Oracle Fusion solutions for Sales, Service, and Marketing. Beyond these, Oracle develops cloud solutions tailored for various specific industries, alongside traditional application licenses and comprehensive license support services. Furthermore, the company's robust cloud and licensing business is underpinned by its infrastructure technologies. These include the flagship Oracle Database, the widely adopted Java programming language, and various middleware components such as development tools. Its advanced cloud infrastructure provides compute, storage, and networking capabilities, complemented by innovative services like the Oracle Autonomous Database, MySQL HeatWave, Internet-of-Things (IoT) platforms, digital assistants, and blockchain technology. Oracle also offers a range of hardware products and associated software. This encompasses Oracle engineered systems, enterprise servers, storage solutions, and specialized hardware for particular industries. Additionally, it provides virtualization software, operating systems, management software, and related hardware support. Complementing its product lines, Oracle delivers expert consulting and dedicated customer services. The company employs a direct sales model, reaching businesses across diverse sectors, government bodies, and educational institutions globally, while also leveraging an extensive network of indirect channels. Established in 1977, Oracle Corporation maintains its corporate headquarters in Austin, Texas.

CEO
Michael D. Sicilia
Headquarters
Austin, TX
Employees
141,000
IPO
1986-03-12
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.