Stock Analysis on Net

Oracle Corp. (NYSE:ORCL)

Price to FCFE (P/FCFE)

Microsoft Excel LibreOffice Calc

Free Cash Flow to Equity (FCFE)

Oracle Corp., FCFE calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Net income 13,746  10,135  11,083  3,825  9,335  8,901 
Noncontrolling interests in income 180  164  152  135  118  116 
Net noncash charges 2,301  4,027  3,576  3,766  3,449  3,474 
Changes in operating assets and liabilities, net of effects from acquisitions (340) (1,187) (260) 7,660  1,224  1,070 
Net cash provided by operating activities 15,887  13,139  14,551  15,386  14,126  13,561 
Capital expenditures (2,135) (1,564) (1,660) (1,736) (2,021) (1,189)
Proceeds from borrowings, net of issuance costs 14,934  19,888  —  12,443  17,732  3,750 
Repayments of borrowings (2,631) (4,500) (4,500) (9,800) (4,094) (2,000)
Free cash flow to equity (FCFE) 26,055  26,963  8,391  16,293  25,743  14,122 

Based on: 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), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Oracle Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Oracle Corp. FCFE increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Price to FCFE Ratio, Current

Oracle Corp., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
No. shares of common stock outstanding 2,670,447,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 26,055 
FCFE per share 9.76
Current share price (P) 82.22
Valuation Ratio
P/FCFE 8.43
Benchmarks
P/FCFE, Competitors1
Accenture PLC 25.31
Adobe Inc. 34.26
Autodesk Inc. 59.03
Automatic Data Processing Inc. 25.58
Fidelity National Information Services Inc. 35.07
Fiserv Inc. 57.50
International Business Machines Corp. 10.14
Intuit Inc. 83.75
Mastercard Inc. 33.31
Microsoft Corp. 43.91
PayPal Holdings Inc. 21.18
salesforce.com inc. 54.33
ServiceNow Inc. 43.67
Visa Inc. 37.69
P/FCFE, Sector
Software & Services 33.47
P/FCFE, Industry
Information Technology 32.42

Based on: 10-K (reporting date: 2021-05-31).

1 Click competitor name to see calculations.

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


Price to FCFE Ratio, Historical

Oracle Corp., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
No. shares of common stock outstanding1 2,792,000,000 3,068,682,000 3,335,819,000 3,981,155,000 4,136,682,000 4,122,730,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 26,055  26,963  8,391  16,293  25,743  14,122 
FCFE per share3 9.33 8.79 2.52 4.09 6.22 3.43
Share price1, 4 77.99 55.12 56.12 44.10 50.75 40.01
Valuation Ratio
P/FCFE5 8.36 6.27 22.31 10.78 8.16 11.68
Benchmarks
P/FCFE, Competitors6
Accenture PLC 25.76 19.01 19.50 18.11 20.24 18.22
Adobe Inc. 34.26 41.36 41.90 19.87 35.56 27.41
Autodesk Inc. 64.43 24.07 41.92 609.14 197.14 11.80
Automatic Data Processing Inc. 25.07 26.84 30.56 28.87 29.94 11.79
Fidelity National Information Services Inc. 42.96 9.51 22.12 97.57
Fiserv Inc. 64.15 4.38 14.91 19.31 17.56
International Business Machines Corp. 9.43 4.39 11.07 8.55 10.60
Intuit Inc. 86.74 17.36 34.61 29.29 42.22 21.01
Mastercard Inc. 32.34 35.41 33.72 35.79 19.46
Microsoft Corp. 42.54 42.74 30.77 37.57 8.86 10.12
PayPal Holdings Inc. 34.78 20.59 18.96 33.80 20.00
salesforce.com inc. 49.52 50.40 29.09 52.51 25.44 50.00
ServiceNow Inc. 50.12 74.57 327.16 24.90 410.08
Visa Inc. 37.21 26.18 32.21 30.19 22.70 8.78
P/FCFE, Sector
Software & Services 27.60 20.80 25.05 13.57 12.33
P/FCFE, Industry
Information Technology 24.46 18.99 22.20 12.57 11.10

Based on: 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), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 26,055,000,000 ÷ 2,792,000,000 = 9.33

4 Closing price as at the filing date of Oracle Corp. Annual Report.

5 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 77.99 ÷ 9.33 = 8.36

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Oracle Corp. P/FCFE ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.