Stock Analysis on Net
Stock Analysis on Net

Oracle Corp. (NYSE:ORCL)

Price to FCFE (P/FCFE)

Microsoft Excel

Free Cash Flow to Equity (FCFE)

Oracle Corp., FCFE 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
Capital expenditures (8,695) (4,511) (2,135) (1,564) (1,660) (1,736)
Proceeds from issuances of commercial paper, net of repayments 500 — — — — —
Proceeds from issuances of senior notes and other borrowings, net of issuance costs 33,494 — 14,934 19,888 — 12,443
Repayments of senior notes and other borrowings (21,050) (8,250) (2,631) (4,500) (4,500) (9,800)
Free cash flow to equity (FCFE) 21,414 (3,222) 26,055 26,963 8,391 16,293

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
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 decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Price to FCFE Ratio, Current

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

Microsoft Excel
No. shares of common stock outstanding 2,748,514,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 21,414
FCFE per share 7.79
Current share price (P) 116.00
Valuation Ratio
P/FCFE 14.89
Benchmarks
P/FCFE, Competitors1
Accenture PLC 21.87
Adobe Inc. 32.91
International Business Machines Corp. 9.82
Intuit Inc. 42.84
Microsoft Corp. 52.96
Palo Alto Networks Inc. 96.72
Salesforce Inc. 34.31
ServiceNow Inc. 55.45
Synopsys Inc. 52.47
P/FCFE, Sector
Software & Services 37.05
P/FCFE, Industry
Information Technology 40.91

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

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
May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018
No. shares of common stock outstanding1 2,714,259,000 2,664,926,000 2,792,000,000 3,068,682,000 3,335,819,000 3,981,155,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 21,414 (3,222) 26,055 26,963 8,391 16,293
FCFE per share3 7.89 -1.21 9.33 8.79 2.52 4.09
Share price1, 4 122.04 67.68 77.99 55.12 56.12 44.10
Valuation Ratio
P/FCFE5 15.47 — 8.36 6.27 22.31 10.78
Benchmarks
P/FCFE, Competitors6
Accenture PLC 21.03 17.91 25.76 19.01 19.50 18.11
Adobe Inc. 41.83 21.32 34.26 41.36 41.90 19.87
International Business Machines Corp. 9.97 11.97 48.45 9.43 4.39 —
Intuit Inc. 38.74 13.86 86.74 17.36 34.61 29.29
Microsoft Corp. 43.32 36.73 42.54 42.74 30.77 37.57
Palo Alto Networks Inc. 79.75 29.54 32.91 8.11 46.20 8.50
Salesforce Inc. 31.06 16.56 49.52 50.40 29.09 —
ServiceNow Inc. 58.13 44.44 64.54 49.83 68.98 —
Synopsys Inc. 57.04 33.41 40.55 45.07 77.64 19.63
P/FCFE, Sector
Software & Services 32.42 30.43 33.49 25.65 21.90 —
P/FCFE, Industry
Information Technology 33.34 26.56 27.30 23.29 18.92 —

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 Data adjusted for splits and stock dividends.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 21,414,000,000 ÷ 2,714,259,000 = 7.89

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

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 122.04 ÷ 7.89 = 15.47

6 Click competitor name to see calculations.