Oracle Corporation develops, manufactures, markets, sells, hosts, and supports database and middleware software, application software, cloud infrastructure, hardware systems, and related services worldwide. The company was founded in 1977 and is based in Redwood City, California.
ORCL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Oracle Corp. To summarize, we found that Oracle Corp ranked in the 34th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for ORCL, they are:
In the past 5.99 years, Oracle Corp has a compound free cash flow growth rate of -0.04%; that's higher than only 16% of free cash flow generating stocks in the Technology sector.
Oracle Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 14.5% of tickers in our DCF set.
ORCL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 14.5% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ORCL, try DBX, SLAB, SVMK, ADSK, and HQY.
BOSTON, July 2, 2020 /PRNewswire/ -- When Oracle announced that, starting in January 2019, commercial Java users must buy a license in order to receive updates and potentially ensure compliance, many businesses were forced to evaluate their Java use but found navigating Oracle's complex…
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If you are looking for the best ideas for your portfolio you may want to consider some of Ensemble Capital's top stock picks. Ensemble Capital, an investment management firm, is bearish on Oracle Corp (NYSE:ORCL) stock. In its Q4 2019 investor letter – you can download a copy here – the firm discussed its investment […]