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 31th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 31.33%. As for the metrics that stood out in our discounted cash flow analysis of Oracle Corp, consider:
Its compound free cash flow growth rate, as measured over the past 5.99 years, is -0.02% -- higher than merely 24.56% of stocks in our DCF forecasting set.
The weighted average cost of capital for the company is 7. This value is greater than only 10.59% stocks in the Technology sector that generate free cash flow.
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 OMCL, BKI, CDNS, WK, and HPE.