Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)
Interest Paid, Net of Tax
EV to FCFF Ratio, Current
EV to FCFF Ratio, Historical

Free Cash Flow to The Firm (FCFF)

Oracle Corp., FCFF calculation

US$ in millions

12 months ended:	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Net income	10,467)	8,503)	6,717)	13,746)	10,135)	11,083)
Noncontrolling interests in income	186)	165)	184)	180)	164)	152)
Net noncash charges	8,508)	7,984)	4,625)	2,109)	3,782)	3,386)
Changes in operating assets and liabilities, net of effects from acquisitions	(488)	513)	(1,987)	(148)	(942)	(70)
Net cash provided by operating activities	18,673)	17,165)	9,539)	15,887)	13,139)	14,551)
Cash paid for interest, net of tax¹	3,257)	3,029)	2,401)	1,902)	1,656)	1,795)
Capital expenditures	(6,866)	(8,695)	(4,511)	(2,135)	(1,564)	(1,660)
Free cash flow to the firm (FCFF)	15,064)	11,499)	7,429)	15,654)	13,231)	14,686)

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

¹ See details »

Download chart

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Oracle Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Oracle Corp. FCFF increased from 2022 to 2023 and from 2023 to 2024.

Interest Paid, Net of Tax

Oracle Corp., interest paid, net of tax calculation

US$ in millions

12 months ended:	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	10.90%	6.80%	12.20%	21.00%	16.00%	12.80%
Interest Paid, Net of Tax
Cash paid for interest, before tax	3,655)	3,250)	2,735)	2,408)	1,972)	2,059)
Less: Cash paid for interest, tax²	398)	221)	334)	506)	316)	264)
Cash paid for interest, net of tax	3,257)	3,029)	2,401)	1,902)	1,656)	1,795)

¹ See details »

² 2024 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 3,655 × 10.90% = 398

Download chart

Enterprise Value to FCFF Ratio, Current

Oracle Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	532,650)
Free cash flow to the firm (FCFF)	15,064)
Valuation Ratio
EV/FCFF	35.36
Benchmarks
EV/FCFF, Competitors¹
Accenture PLC	22.43
Adobe Inc.	31.47
Autodesk Inc.	43.49
Cadence Design Systems Inc.	57.54
CrowdStrike Holdings Inc.	66.38
International Business Machines Corp.	17.37
Intuit Inc.	37.37
Microsoft Corp.	50.22
Palo Alto Networks Inc.	34.06
Salesforce Inc.	24.46
ServiceNow Inc.	66.14
Synopsys Inc.	49.27
EV/FCFF, Sector
Software & Services	43.97
EV/FCFF, Industry
Information Technology	49.21

Based on: 10-K (reporting date: 2024-05-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Enterprise Value to FCFF Ratio, Historical

Oracle Corp., historical EV/FCFF calculation, comparison to benchmarks

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	470,583)	412,025)	234,771)	256,153)	198,329)	206,124)
Free cash flow to the firm (FCFF)²	15,064)	11,499)	7,429)	15,654)	13,231)	14,686)
Valuation Ratio
EV/FCFF³	31.24	35.83	31.60	16.36	14.99	14.03
Benchmarks
EV/FCFF, Competitors⁴
Accenture PLC	—	20.26	16.99	24.76	17.90	18.49
Adobe Inc.	—	37.75	20.82	33.61	40.43	40.48
Autodesk Inc.	36.00	20.48	27.63	41.13	23.38	98.38
Cadence Design Systems Inc.	—	63.83	44.54	35.05	44.13	29.35
CrowdStrike Holdings Inc.	81.46	38.65	96.35	141.44	807.14	—
International Business Machines Corp.	—	15.27	16.47	13.10	9.35	12.86
Intuit Inc.	36.79	31.28	32.85	48.64	37.90	33.30
Microsoft Corp.	49.30	41.75	32.31	38.37	33.99	26.37
Palo Alto Networks Inc.	34.69	28.15	29.29	32.74	26.50	20.44
Salesforce Inc.	29.95	28.41	35.97	44.91	39.63	41.21
ServiceNow Inc.	—	56.49	40.86	60.13	83.74	67.96
Synopsys Inc.	—	55.87	30.82	38.59	42.88	33.32
EV/FCFF, Sector
Software & Services	—	35.33	29.55	32.31	27.29	23.61
EV/FCFF, Industry
Information Technology	—	34.38	27.28	28.22	24.29	19.88

¹ See details »

² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 470,583 ÷ 15,064 = 31.24

⁴ Click competitor name to see calculations.

Download chart

Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Oracle Corp. EV/FCFF ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Oracle Corp. (NYSE:ORCL)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical