Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Oracle Corp. (NYSE:ORCL)

Common Stock Valuation Ratios (Price Multiples)

Beginner level

Current Valuation Ratios

Oracle Corp., current price multiples

Microsoft Excel LibreOffice Calc
Oracle Corp. Adobe Inc. Alphabet Inc. Autodesk Inc. Facebook Inc. International Business Machines Corp. Intuit Inc. Microsoft Corp. salesforce.com inc. ServiceNow Inc. Software & Computer Services Technology
Selected Financial Data
Current share price (P) $59.69
No. shares of common stock outstanding 3,007,161,000
Growth rate (g) 18.42%
 
Earnings per share (EPS) $3.37
Next year expected EPS $3.99
Operating profit per share $4.62
Sales per share $12.99
Book value per share (BVPS) $4.02
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 17.71 78.60 31.99 258.39 42.86 10.93 47.58 36.72 1,803.17 154.85 37.88 33.67
Price to next year expected earnings 14.96 67.66 27.70 326.79 36.33 8.93 34.96 33.00 1,809.10 197.42 33.13 28.87
Price-earnings-growth (PEG) 0.96 4.86 2.06 2.38 0.49 1.32 3.26 2.64 2.03
Price to operating profit (P/OP) 12.92 70.99 32.10 161.59 33.03 9.78 39.92 30.71 764.98 2,303.80 34.36 29.71
Price to sales (P/S) 4.59 20.77 6.79 16.93 11.21 1.34 11.31 11.37 13.29 28.04 8.78 7.71
Price to book value (P/BV) 14.87 22.03 5.45 7.84 4.95 17.01 13.75 6.71 45.60 9.39 10.02

Based on: 10-K (filing date: 2020-06-22).

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, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Price to earnings (P/E) 16.69 16.89 45.90 22.49 18.53 17.92
Price to operating profit (P/OP) 12.17 13.83 12.83 16.52 13.09 12.84
Price to sales (P/S) 4.33 4.74 4.41 5.56 4.45 4.66
Price to book value (P/BV) 14.01 8.59 3.84 3.90 3.49 3.66

Based on: 10-K (filing date: 2020-06-22), 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).

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 decreased from 2018 to 2019 and from 2019 to 2020.
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 increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
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 increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
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 increased from 2018 to 2019 and from 2019 to 2020.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
No. shares of common stock outstanding1 3,068,682,000 3,335,819,000 3,981,155,000 4,136,682,000 4,122,730,000 4,336,077,000
Selected Financial Data (US$)
Net income (in millions) 10,135  11,083  3,825  9,335  8,901  9,938 
Earnings per share (EPS)2 3.30 3.32 0.96 2.26 2.16 2.29
Share price1, 3 55.12 56.12 44.10 50.75 40.01 41.06
Valuation Ratio
P/E ratio4 16.69 16.89 45.90 22.49 18.53 17.92
Benchmarks
P/E Ratio, Competitors5
Adobe Inc. 57.17 46.11 57.41 46.80 70.59
Alphabet Inc. 28.96 25.92 59.34 28.45 29.71
Autodesk Inc. 152.72 171.18
Facebook Inc. 32.31 21.51 35.20 37.05 84.21
International Business Machines Corp. 13.35 14.25 25.07 14.29 9.65
Intuit Inc. 49.52 48.17 46.88 37.26 29.60 63.89
Microsoft Corp. 35.04 26.86 50.00 26.25 26.08 30.63
salesforce.com inc. 1,204.70 107.70 731.11 324.94
ServiceNow Inc. 106.89
P/E Ratio, Sector
Software & Computer Services 28.83 32.15 36.74 27.17 28.71
P/E Ratio, Industry
Technology 24.18 23.18 27.34 21.75 19.33

Based on: 10-K (filing date: 2020-06-22), 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 10,135,000,000 ÷ 3,068,682,000 = 3.30

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

4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 55.12 ÷ 3.30 = 16.69

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 decreased from 2018 to 2019 and from 2019 to 2020.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
No. shares of common stock outstanding1 3,068,682,000 3,335,819,000 3,981,155,000 4,136,682,000 4,122,730,000 4,336,077,000
Selected Financial Data (US$)
Operating income (in millions) 13,896  13,535  13,679  12,710  12,604  13,871 
Operating profit per share2 4.53 4.06 3.44 3.07 3.06 3.20
Share price1, 3 55.12 56.12 44.10 50.75 40.01 41.06
Valuation Ratio
P/OP ratio4 12.17 13.83 12.83 16.52 13.09 12.84
Benchmarks
P/OP Ratio, Competitors5
Adobe Inc. 51.63 42.06 44.86 36.62 49.21
Alphabet Inc. 29.05 30.27 28.74 23.37 24.29
Autodesk Inc. 95.51 9,893.24 116.01
Facebook Inc. 24.90 19.10 27.76 30.46 49.89
International Business Machines Corp. 11.94 9.41 12.22 12.94 8.11
Intuit Inc. 41.56 40.45 37.92 25.94 23.33 31.60
Microsoft Corp. 29.30 24.54 23.63 24.93 21.70 20.57
salesforce.com inc. 511.08 223.46 395.31 908.77 411.51
ServiceNow Inc. 1,590.30
P/OP Ratio, Sector
Software & Computer Services 26.15 23.40 25.58 22.07 21.30
P/OP Ratio, Industry
Technology 21.34 17.83 19.87 17.13 14.77

Based on: 10-K (filing date: 2020-06-22), 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 13,896,000,000 ÷ 3,068,682,000 = 4.53

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

4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 55.12 ÷ 4.53 = 12.17

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 increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
No. shares of common stock outstanding1 3,068,682,000 3,335,819,000 3,981,155,000 4,136,682,000 4,122,730,000 4,336,077,000
Selected Financial Data (US$)
Revenues (in millions) 39,068  39,506  39,831  37,728  37,047  38,226 
Sales per share2 12.73 11.84 10.00 9.12 8.99 8.82
Share price1, 3 55.12 56.12 44.10 50.75 40.01 41.06
Valuation Ratio
P/S ratio4 4.33 4.74 4.41 5.56 4.45 4.66
Benchmarks
P/S Ratio, Competitors5
Adobe Inc. 15.11 13.23 13.32 9.34 9.27
Alphabet Inc. 6.14 5.82 6.78 6.14 6.27
Autodesk Inc. 10.00 13.21 13.95 9.09 5.14 5.57
Facebook Inc. 8.45 8.52 13.80 13.70 17.32
International Business Machines Corp. 1.63 1.56 1.82 2.12 1.56
Intuit Inc. 11.78 11.05 9.52 6.99 6.17 5.56
Microsoft Corp. 10.85 8.38 7.51 6.19 5.13 3.99
salesforce.com inc. 8.88 9.00 8.89 6.96 7.09 7.82
ServiceNow Inc. 19.36 16.63 14.55 10.50 8.69
P/S Ratio, Sector
Software & Computer Services 6.68 6.06 6.42 5.46 4.91
P/S Ratio, Industry
Technology 5.54 4.82 5.06 4.20 3.72

Based on: 10-K (filing date: 2020-06-22), 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 39,068,000,000 ÷ 3,068,682,000 = 12.73

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

4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 55.12 ÷ 12.73 = 4.33

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 increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
No. shares of common stock outstanding1 3,068,682,000 3,335,819,000 3,981,155,000 4,136,682,000 4,122,730,000 4,336,077,000
Selected Financial Data (US$)
Total Oracle Corporation stockholders’ equity (in millions) 12,074  21,785  45,726  53,860  47,289  48,663 
Book value per share (BVPS)2 3.93 6.53 11.49 13.02 11.47 11.22
Share price1, 3 55.12 56.12 44.10 50.75 40.01 41.06
Valuation Ratio
P/BV ratio4 14.01 8.59 3.84 3.90 3.49 3.66
Benchmarks
P/BV Ratio, Competitors5
Adobe Inc. 16.03 12.76 11.50 7.37 6.35
Alphabet Inc. 4.94 4.49 4.93 3.99 3.91
Autodesk Inc. 25.18 7.94 6.31
Facebook Inc. 5.91 5.65 7.54 6.39 7.02
International Business Machines Corp. 6.04 7.40 8.20 9.30 8.92
Intuit Inc. 17.71 20.00 24.12 26.72 24.96 10.00
Microsoft Corp. 13.11 10.30 10.02 7.69 6.08 4.66
salesforce.com inc. 4.48 7.66 9.93 7.78 9.45 10.57
ServiceNow Inc. 31.48 39.04 48.15 37.74 15.42
P/BV Ratio, Sector
Software & Computer Services 7.14 6.39 6.32 5.30 4.92
P/BV Ratio, Industry
Technology 7.20 6.25 5.50 4.51 4.34

Based on: 10-K (filing date: 2020-06-22), 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
BVPS = Total Oracle Corporation stockholders’ equity ÷ No. shares of common stock outstanding
= 12,074,000,000 ÷ 3,068,682,000 = 3.93

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

4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 55.12 ÷ 3.93 = 14.01

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 increased from 2018 to 2019 and from 2019 to 2020.