Stock Analysis on Net

Oracle Corp. (NYSE:ORCL)

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel LibreOffice Calc

Current Valuation Ratios

Oracle Corp., current price multiples

Microsoft Excel LibreOffice Calc
Oracle Corp. Accenture PLC Adobe Inc. International Business Machines Corp. Intuit Inc. Mastercard Inc. Microsoft Corp. PayPal Holdings Inc. Salesforce Inc. ServiceNow Inc. Visa Inc. Software & Services Information Technology
Selected Financial Data
Current share price (P) $76.47
No. shares of common stock outstanding 2,664,926,000
Growth rate (g) 40.78%
 
Earnings per share (EPS) $2.52
Next year expected EPS $3.55
Operating profit per share $4.10
Sales per share $15.93
Book value per share (BVPS) $-2.33
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 30.34 33.26 42.15 20.36 63.85 39.18 28.74 26.70 130.75 434.70 35.85 33.53 29.12
Price to next year expected earnings 21.55 27.07 33.22 19.30 47.64 21.26 23.82 23.07 127.40 407.62 29.52 27.98 23.81
Price-earnings-growth (PEG) 0.74 1.46 1.57 3.71 1.88 0.46 1.39 1.69 49.71 65.44 1.67 1.69 1.31
Price to operating profit (P/OP) 18.65 25.78 35.03 17.03 52.66 33.76 25.07 26.12 344.53 389.03 27.92 29.72 25.69
Price to sales (P/S) 4.80 3.89 12.88 2.04 13.67 18.02 10.54 4.39 7.13 16.96 18.31 9.43 7.66

Based on: 10-K (reporting date: 2022-05-31).

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, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017
Price to earnings (P/E) 26.85 15.84 16.69 16.89 45.90 22.49
Price to operating profit (P/OP) 16.51 14.31 12.17 13.83 12.83 16.52
Price to sales (P/S) 4.25 5.38 4.33 4.74 4.41 5.56
Price to book value (P/BV) 41.57 14.01 8.59 3.84 3.90

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

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. P/E ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
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. P/OP ratio increased from 2020 to 2021 and from 2021 to 2022.
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. P/S ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017
No. shares of common stock outstanding1 2,664,926,000 2,792,000,000 3,068,682,000 3,335,819,000 3,981,155,000 4,136,682,000
Selected Financial Data (US$)
Net income (in millions) 6,717  13,746  10,135  11,083  3,825  9,335 
Earnings per share (EPS)2 2.52 4.92 3.30 3.32 0.96 2.26
Share price1, 3 67.68 77.99 55.12 56.12 44.10 50.75
Valuation Ratio
P/E ratio4 26.85 15.84 16.69 16.89 45.90 22.49
Benchmarks
P/E Ratio, Competitors5
Accenture PLC 36.58 28.32 24.58 24.10 26.18
Adobe Inc. 48.90 41.69 57.17 46.11 57.41
International Business Machines Corp. 19.40 19.30 13.35 14.25 25.07
Intuit Inc. 75.17 49.52 48.17 46.88 37.26
Mastercard Inc. 41.61 52.84 42.21 38.62 46.33
Microsoft Corp. 28.34 35.14 35.04 26.86 50.00 26.25
PayPal Holdings Inc. 34.73 75.10 57.19 51.82 50.54
Salesforce Inc. 135.68 48.20 1,204.70 107.70 731.11 324.94
ServiceNow Inc. 487.70 978.47 106.89
Visa Inc. 34.83 40.76 32.08 30.03 37.19
P/E Ratio, Sector
Software & Services 35.22 38.84 29.82 39.44 31.77
P/E Ratio, Industry
Information Technology 29.34 33.01 24.22 23.79 24.47

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

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 6,717,000,000 ÷ 2,664,926,000 = 2.52

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

4 2022 Calculation
P/E ratio = Share price ÷ EPS
= 67.68 ÷ 2.52 = 26.85

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. P/E ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017
No. shares of common stock outstanding1 2,664,926,000 2,792,000,000 3,068,682,000 3,335,819,000 3,981,155,000 4,136,682,000
Selected Financial Data (US$)
Operating income (in millions) 10,926  15,213  13,896  13,535  13,679  12,710 
Operating profit per share2 4.10 5.45 4.53 4.06 3.44 3.07
Share price1, 3 67.68 77.99 55.12 56.12 44.10 50.75
Valuation Ratio
P/OP ratio4 16.51 14.31 12.17 13.83 12.83 16.52
Benchmarks
P/OP Ratio, Competitors5
Accenture PLC 28.35 22.21 18.63 16.75 19.47
Adobe Inc. 40.64 51.75 51.63 42.06 44.86
International Business Machines Corp. 16.23 15.90 11.94 9.41 12.22
Intuit Inc. 62.00 41.56 40.45 37.92 25.94
Mastercard Inc. 35.85 41.92 35.46 31.07 27.39
Microsoft Corp. 24.72 30.79 29.30 24.54 23.63 24.93
PayPal Holdings Inc. 33.98 95.94 51.72 48.58 42.65
Salesforce Inc. 357.52 431.39 511.08 223.46 395.31 908.77
ServiceNow Inc. 436.46 583.07 1,590.30
Visa Inc. 27.13 31.45 25.83 23.88 20.52
P/OP Ratio, Sector
Software & Services 31.22 32.42 26.18 23.02 22.96
P/OP Ratio, Industry
Information Technology 25.89 28.16 20.96 17.07 18.23

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

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 10,926,000,000 ÷ 2,664,926,000 = 4.10

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

4 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 67.68 ÷ 4.10 = 16.51

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. P/OP ratio increased from 2020 to 2021 and from 2021 to 2022.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017
No. shares of common stock outstanding1 2,664,926,000 2,792,000,000 3,068,682,000 3,335,819,000 3,981,155,000 4,136,682,000
Selected Financial Data (US$)
Revenues (in millions) 42,440  40,479  39,068  39,506  39,831  37,728 
Sales per share2 15.93 14.50 12.73 11.84 10.00 9.12
Share price1, 3 67.68 77.99 55.12 56.12 44.10 50.75
Valuation Ratio
P/S ratio4 4.25 5.38 4.33 4.74 4.41 5.56
Benchmarks
P/S Ratio, Competitors5
Accenture PLC 4.28 3.26 2.72 2.35 2.45
Adobe Inc. 14.94 17.04 15.11 13.23 13.32
International Business Machines Corp. 1.94 1.47 1.63 1.56 1.82
Intuit Inc. 16.09 11.78 11.05 9.52 6.99
Mastercard Inc. 19.14 22.14 20.30 15.13 14.51
Microsoft Corp. 10.40 12.81 10.85 8.38 7.51 6.19
PayPal Holdings Inc. 5.71 14.71 7.91 6.90 6.93
Salesforce Inc. 7.40 9.24 8.88 9.00 8.89 6.96
ServiceNow Inc. 19.02 25.66 19.36 16.63 14.55
Visa Inc. 17.79 20.27 16.86 15.01 13.57
P/S Ratio, Sector
Software & Services 9.91 9.10 7.37 6.22 5.61
P/S Ratio, Industry
Information Technology 7.72 7.35 5.62 4.71 4.57

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

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 42,440,000,000 ÷ 2,664,926,000 = 15.93

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

4 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= 67.68 ÷ 15.93 = 4.25

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. P/S ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017
No. shares of common stock outstanding1 2,664,926,000 2,792,000,000 3,068,682,000 3,335,819,000 3,981,155,000 4,136,682,000
Selected Financial Data (US$)
Total Oracle Corporation stockholders’ equity (deficit) (in millions) (6,220) 5,238  12,074  21,785  45,726  53,860 
Book value per share (BVPS)2 -2.33 1.88 3.93 6.53 11.49 13.02
Share price1, 3 67.68 77.99 55.12 56.12 44.10 50.75
Valuation Ratio
P/BV ratio4 41.57 14.01 8.59 3.84 3.90
Benchmarks
P/BV Ratio, Competitors5
Accenture PLC 11.06 8.51 8.15 9.44 10.08
Adobe Inc. 15.94 16.53 16.03 12.76 11.50
International Business Machines Corp. 5.90 5.24 6.04 7.40 8.20
Intuit Inc. 15.71 17.71 20.00 24.12 26.72
Mastercard Inc. 49.43 53.00 58.15 41.94 33.17
Microsoft Corp. 12.38 15.16 13.11 10.30 10.02 7.69
PayPal Holdings Inc. 6.66 15.76 8.33 6.93 5.67
Salesforce Inc. 3.37 4.73 4.48 7.66 9.93 7.78
ServiceNow Inc. 30.36 40.91 31.48 39.04 48.15
Visa Inc. 11.41 12.23 11.17 9.10 7.61
P/BV Ratio, Sector
Software & Services 13.45 12.77 11.20 9.38 7.75
P/BV Ratio, Industry
Information Technology 12.42 11.55 8.90 7.33 5.73

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

1 Data adjusted for splits and stock dividends.

2 2022 Calculation
BVPS = Total Oracle Corporation stockholders’ equity (deficit) ÷ No. shares of common stock outstanding
= -6,220,000,000 ÷ 2,664,926,000 = -2.33

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

4 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= 67.68 ÷ -2.33 =

5 Click competitor name to see calculations.