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Oracle Corp. (ORCL)


Common Stock Valuation Ratios (Price Multiples)

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Current Valuation Ratios

Oracle Corp., current price multiples

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Oracle Corp. Adobe Inc. Alphabet Inc. Facebook Inc. International Business Machines Corp. Intuit Inc. Microsoft Corp. salesforce.com inc. Software & Computer Services Technology
Selected Financial Data
Current share price (P) $56.59
No. shares of common stock outstanding 3,288,330,000
Growth rate (g) 16.11%
 
Earnings per share (EPS) $3.37
Next year expected EPS $3.91
Operating profit per share $4.12
Sales per share $12.01
Book value per share (BVPS) $6.62
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 16.79 54.51 29.14 25.08 13.76 43.43 28.59 128.67 37.60 28.90
Price to next year expected earnings 14.46 48.73 25.69 21.72 10.60 32.08 25.94 128.57 33.04 25.00
Price-earnings-growth (PEG) 1.04 4.59 2.16 1.62 0.46 1.23 2.80 1,586.71 2.72 1.86
Price to operating profit (P/OP) 13.75 49.72 34.03 22.26 9.09 36.47 26.12 266.97 27.43 21.94
Price to sales (P/S) 4.71 15.64 6.55 9.93 1.51 9.97 8.92 10.75 7.21 5.84
Price to book value (P/BV) 8.54 15.08 5.04 6.59 7.15 18.04 10.96 9.15 7.55 7.63

Based on: 10-K (filing date: 2019-06-21).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Oracle Corp., historical price multiples

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Price to earnings (P/E) 16.89 45.90 22.49 18.53 17.92 16.33
Price to operating profit (P/OP) 13.83 12.83 16.52 13.09 12.84 12.12
Price to sales (P/S) 4.74 4.41 5.56 4.45 4.66 4.67
Price to book value (P/BV) 8.59 3.84 3.90 3.49 3.66 3.82

Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25), 10-K (filing date: 2014-06-26).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Oracle Corp.’s P/E ratio increased from 2017 to 2018 but then declined significantly from 2018 to 2019.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Oracle Corp.’s P/OP ratio declined from 2017 to 2018 but then slightly increased from 2018 to 2019.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Oracle Corp.’s P/S ratio declined from 2017 to 2018 but then slightly increased from 2018 to 2019.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Oracle Corp.’s P/BV ratio declined from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Price to Earnings (P/E)

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

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May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
No. shares of common stock outstanding1 3,335,819,000 3,981,155,000 4,136,682,000 4,122,730,000 4,336,077,000 4,454,889,000
Selected Financial Data (US$)
Net income (in millions) 11,083  3,825  9,335  8,901  9,938  10,955 
Earnings per share (EPS)2 3.32 0.96 2.26 2.16 2.29 2.46
Share price1, 3 56.12 44.10 50.75 40.01 41.06 40.15
Valuation Ratio
P/E ratio4 16.89 45.90 22.49 18.53 17.92 16.33
Benchmarks
P/E Ratio, Competitors5
Adobe Inc. 46.11 57.41 46.80 70.59 132.73
Alphabet Inc. 25.92 59.34 28.45 29.71 24.87
Facebook Inc. 21.51 35.20 37.05 84.21 74.26
International Business Machines Corp. 14.25 25.07 14.29 9.65 13.55
Intuit Inc. 48.17 46.88 37.26 29.60 63.89 26.44
Microsoft Corp. 26.86 50.00 26.25 26.08 30.63 16.11
salesforce.com inc. 107.70 731.11 324.94
P/E Ratio, Sector
Software & Computer Services 31.08 35.65 26.47 28.24 21.67
P/E Ratio, Industry
Technology 24.30 27.49 21.13 19.29 18.78

Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25), 10-K (filing date: 2014-06-26).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 11,083,000,000 ÷ 3,335,819,000 = 3.32

3 Closing price as at the filing date of Oracle Corp.’s Annual Report.

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 56.12 ÷ 3.32 = 16.89

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Oracle Corp.’s P/E ratio increased from 2017 to 2018 but then declined significantly from 2018 to 2019.

Price to Operating Profit (P/OP)

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

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May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
No. shares of common stock outstanding1 3,335,819,000 3,981,155,000 4,136,682,000 4,122,730,000 4,336,077,000 4,454,889,000
Selected Financial Data (US$)
Operating income (in millions) 13,535  13,679  12,710  12,604  13,871  14,759 
Operating profit per share2 4.06 3.44 3.07 3.06 3.20 3.31
Share price1, 3 56.12 44.10 50.75 40.01 41.06 40.15
Valuation Ratio
P/OP ratio4 13.83 12.83 16.52 13.09 12.84 12.12
Benchmarks
P/OP Ratio, Competitors5
Adobe Inc. 42.06 44.86 36.62 49.21 86.32
Alphabet Inc. 30.27 28.74 23.37 24.29 21.78
Facebook Inc. 19.10 27.76 30.46 49.89 43.72
International Business Machines Corp. 9.41 12.22 12.94 8.11 8.79
Intuit Inc. 40.45 37.92 25.94 23.33 31.60 18.25
Microsoft Corp. 24.54 23.63 24.93 21.70 20.57 12.81
salesforce.com inc. 223.46 395.31 908.77 411.51
P/OP Ratio, Sector
Software & Computer Services 22.67 24.94 21.63 20.98 16.35
P/OP Ratio, Industry
Technology 18.45 19.88 16.75 14.70 14.48

Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25), 10-K (filing date: 2014-06-26).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 13,535,000,000 ÷ 3,335,819,000 = 4.06

3 Closing price as at the filing date of Oracle Corp.’s Annual Report.

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 56.12 ÷ 4.06 = 13.83

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Oracle Corp.’s P/OP ratio declined from 2017 to 2018 but then slightly increased from 2018 to 2019.

Price to Sales (P/S)

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

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May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
No. shares of common stock outstanding1 3,335,819,000 3,981,155,000 4,136,682,000 4,122,730,000 4,336,077,000 4,454,889,000
Selected Financial Data (US$)
Revenues (in millions) 39,506  39,831  37,728  37,047  38,226  38,275 
Sales per share2 11.84 10.00 9.12 8.99 8.82 8.59
Share price1, 3 56.12 44.10 50.75 40.01 41.06 40.15
Valuation Ratio
P/S ratio4 4.74 4.41 5.56 4.45 4.66 4.67
Benchmarks
P/S Ratio, Competitors5
Adobe Inc. 13.23 13.32 9.34 9.27 8.59
Alphabet Inc. 5.82 6.78 6.14 6.27 5.44
Facebook Inc. 8.52 13.80 13.70 17.32 17.51
International Business Machines Corp. 1.56 1.82 2.12 1.56 1.76
Intuit Inc. 11.05 9.52 6.99 6.17 5.56 5.32
Microsoft Corp. 8.38 7.51 6.19 5.13 3.99 4.10
salesforce.com inc. 9.00 8.89 6.96 7.09 7.82 9.54
P/S Ratio, Sector
Software & Computer Services 5.96 6.37 5.44 4.89 4.44
P/S Ratio, Industry
Technology 4.91 5.12 4.24 3.78 3.89

Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25), 10-K (filing date: 2014-06-26).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 39,506,000,000 ÷ 3,335,819,000 = 11.84

3 Closing price as at the filing date of Oracle Corp.’s Annual Report.

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 56.12 ÷ 11.84 = 4.74

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Oracle Corp.’s P/S ratio declined from 2017 to 2018 but then slightly increased from 2018 to 2019.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
No. shares of common stock outstanding1 3,335,819,000 3,981,155,000 4,136,682,000 4,122,730,000 4,336,077,000 4,454,889,000
Selected Financial Data (US$)
Total Oracle Corporation stockholders’ equity (in millions) 21,785  45,726  53,860  47,289  48,663  46,878 
Book value per share (BVPS)2 6.53 11.49 13.02 11.47 11.22 10.52
Share price1, 3 56.12 44.10 50.75 40.01 41.06 40.15
Valuation Ratio
P/BV ratio4 8.59 3.84 3.90 3.49 3.66 3.82
Benchmarks
P/BV Ratio, Competitors5
Adobe Inc. 12.76 11.50 7.37 6.35 5.26
Alphabet Inc. 4.49 4.93 3.99 3.91 3.44
Facebook Inc. 5.65 7.54 6.39 7.02 6.05
International Business Machines Corp. 7.40 8.20 9.30 8.92 13.73
Intuit Inc. 20.00 24.12 26.72 24.96 10.00 7.79
Microsoft Corp. 10.30 10.02 7.69 6.08 4.66 3.96
salesforce.com inc. 7.66 9.93 7.78 9.45 10.57 12.79
P/BV Ratio, Sector
Software & Computer Services 6.24 6.22 5.26 4.89 4.55
P/BV Ratio, Industry
Technology 6.42 5.55 4.54 4.39 4.29

Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25), 10-K (filing date: 2014-06-26).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
BVPS = Total Oracle Corporation stockholders’ equity ÷ No. shares of common stock outstanding
= 21,785,000,000 ÷ 3,335,819,000 = 6.53

3 Closing price as at the filing date of Oracle Corp.’s Annual Report.

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 56.12 ÷ 6.53 = 8.59

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Oracle Corp.’s P/BV ratio declined from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.