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:
Below please find a table outlining a discounted cash flow forecast for ORCL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Oracle Corp ranked in the 36th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Oracle Corp ended up being:
In the past 5.72 years, Oracle Corp has a compound free cash flow growth rate of -0.03%; that's higher than only 18.32% 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 only 20.75% 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 only 20.75% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Oracle Corp? See ALRM, CCMP, EVTC, GLOB, and SVMK.
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