Stock Analysis on Net

Oracle Corp. (NYSE:ORCL)

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Oracle Corp., FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Net income 8,503 6,717 13,746 10,135 11,083 3,825
Noncontrolling interests in income 165 184 180 164 152 135
Net noncash charges 7,984 4,625 2,109 3,782 3,386 3,620
Changes in operating assets and liabilities, net of effects from acquisitions 513 (1,987) (148) (942) (70) 7,806
Net cash provided by operating activities 17,165 9,539 15,887 13,139 14,551 15,386
Cash paid for interest, net of tax1 3,029 2,401 1,902 1,656 1,795 1,599
Capital expenditures (8,695) (4,511) (2,135) (1,564) (1,660) (1,736)
Free cash flow to the firm (FCFF) 11,499 7,429 15,654 13,231 14,686 15,249

Based on: 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), 10-K (reporting date: 2018-05-31).

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 decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Interest Paid, Net of Tax

Oracle Corp., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Effective Income Tax Rate (EITR)
EITR1 6.80% 12.20% 21.00% 16.00% 12.80% 16.30%
Interest Paid, Net of Tax
Cash paid for interest, before tax 3,250 2,735 2,408 1,972 2,059 1,910
Less: Cash paid for interest, tax2 221 334 506 316 264 311
Cash paid for interest, net of tax 3,029 2,401 1,902 1,656 1,795 1,599

Based on: 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), 10-K (reporting date: 2018-05-31).

1 See details »

2 2023 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 3,250 × 6.80% = 221


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 426,018
Free cash flow to the firm (FCFF) 11,499
Valuation Ratio
EV/FCFF 37.05
Benchmarks
EV/FCFF, Competitors1
Accenture PLC 23.24
Adobe Inc. 31.57
International Business Machines Corp. 15.72
Intuit Inc. 36.87
Microsoft Corp. 53.34
Palo Alto Networks Inc. 34.53
Salesforce Inc. 29.70
ServiceNow Inc. 56.17
Synopsys Inc. 56.53
EV/FCFF, Sector
Software & Services 42.32
EV/FCFF, Industry
Information Technology 44.22

Based on: 10-K (reporting date: 2023-05-31).

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

Microsoft Excel
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 412,025 234,771 256,153 198,329 206,124 169,425
Free cash flow to the firm (FCFF)2 11,499 7,429 15,654 13,231 14,686 15,249
Valuation Ratio
EV/FCFF3 35.83 31.60 16.36 14.99 14.03 11.11
Benchmarks
EV/FCFF, Competitors4
Accenture PLC 20.26 16.99 24.76 17.90 18.49 17.18
Adobe Inc. 37.75 20.82 33.61 40.43 40.48 31.36
International Business Machines Corp. 15.27 16.47 13.10 9.35 12.86
Intuit Inc. 31.28 32.85 48.64 37.90 33.30 27.69
Microsoft Corp. 41.75 32.31 38.37 33.99 26.37 23.99
Palo Alto Networks Inc. 28.15 29.29 32.74 26.50 20.44 22.33
Salesforce Inc. 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 37.07
EV/FCFF, Sector
Software & Services 35.26 29.16 31.90 27.10 23.26
EV/FCFF, Industry
Information Technology 34.25 27.01 27.93 24.12 19.69

Based on: 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), 10-K (reporting date: 2018-05-31).

1 See details »

2 See details »

3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 412,025 ÷ 11,499 = 35.83

4 Click competitor name to see calculations.

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 2021 to 2022 and from 2022 to 2023.