Oracle Corp. (NYSE:ORCL)

Price to Earnings (P/E) Ratio Trends

The P/E ratio showed moderate stability in the initial periods, fluctuating between approximately 15 and 18 until mid-2021. A marked increase occurred starting late 2021, peaking intermittently above 38 by mid-2023 and reaching a high of 75 in late 2025. This indicates growing market expectations for earnings growth or possibly increased price levels relative to earnings over time.

Price to Operating Profit (P/OP) Ratio Trends

The P/OP ratio followed a similar pattern to the P/E ratio, beginning with steady values around 12 to 16 through mid-2021. A significant increase was noted from late 2021 onwards, reaching around 25 to 30 by late 2024. The ratio spiked sharply to over 50 by late 2025, suggesting heightened valuation multiples on operating profit, which might reflect optimism about operational performance or market pricing adjustments.

Price to Sales (P/S) Ratio Trends

Initially, the P/S ratio gradually increased from about 4.5 to around 6 by mid-2021. After a drop in early 2022, it resumed an upward trend, surpassing 10 by late 2025. The steady rise indicates increasing investor willingness to pay more per sales dollar, potentially signaling revenue growth, improved sales quality, or stronger market sentiment.

Price to Book Value (P/BV) Ratio Trends

This ratio displayed substantial volatility. Early data show moderately high values near 20 to 40, with some missing data points through 2021 and early 2022. From mid-2023 onward, P/BV ratios exhibit extreme spikes, peaking above 300 and then decreasing but remaining significantly elevated (above 20) through late 2025. Such unusually high ratios may point to changes in book value measurement, extraordinary goodwill or intangible asset revaluations, or market valuation anomalies relative to book equity.

Overall Observations

Across all valuation metrics, a general trend of increasing ratios is observed over the full period, indicating rising market valuations relative to earnings, operating profit, sales, and book value. The sharp rises, especially in later years, could suggest heightened market optimism, potential overvaluation, or structural changes in accounting or business quality. The volatility and elevated P/BV ratios warrant closer examination of underlying asset valuations and accounting policies.

Share Price Trend

The share price demonstrated a generally upward trajectory over the observed period, starting at $60.94 and reaching a peak of $328.33 by the latest quarter. Notable increases include a significant rise between May 2023 and May 2024, where the price escalated from $122.04 to $177.74, followed by a sharp increase toward $328.33 in the final quarter. There were periods of volatility, such as the decline from $102.63 in November 2021 to $67.68 in May 2022, and fluctuations around the mid-2022 timeframe.

Earnings per Share (EPS) Trend

EPS exhibited volatility with fluctuations over the period but generally maintained a positive trend. It began around $3.41, peaked at $5.1 in August 2021, then declined to a low of $2.15 in August 2022. Following this trough, EPS consistently increased to near $4.38 by the last quarter. The partial recovery after the mid-2022 dip suggests variable earnings performance but an overall improving profitability trajectory.

Price-to-Earnings (P/E) Ratio Analysis

The P/E ratio exhibited considerable variability, starting near 18 and reaching extremely elevated values up to 75 in the last quarter. Periods of high P/E ratios coincide with share price peaks and/or lower EPS values, reflecting high market valuation relative to earnings. For example, peaks in P/E can be observed around late 2022 to 2025, indicating the market assigned a high growth expectation or premium to the shares despite EPS growth being modest.

Summary and Insights

The share price growth outpaced EPS increases, leading to an elevated P/E ratio across recent quarters. The data suggests strong market optimism or speculation, especially in the last several quarters, despite EPS not rising proportionally. The fluctuations in EPS and share price through mid-2021 to mid-2022 indicate a period of earnings pressure and market uncertainty, which was subsequently followed by recovery and marked price appreciation. The high P/E ratios raise considerations regarding valuation risk and market expectations for future earnings growth beyond the current historical performance.

Share Price

The share price exhibits a general upward trend over the period analyzed. Starting from $60.94, there are fluctuations with noticeable declines in early 2022, followed by a robust recovery and sharp increases in 2023 and 2024. The price peaks significantly towards the end of the period, reaching $328.33. This suggests strong market confidence and potentially favorable market conditions or company performance, especially in the latest quarters.

Operating Profit per Share

The operating profit per share shows a relatively steady increase, beginning at $4.73 and gradually rising to $6.32 by the end of the period. There is a temporary dip around mid-2021 to mid-2022, where values hover around $4.0 to $5.2. After this phase, profit per share consistently improves, indicating enhanced operational efficiency or growth in earnings attributed to each share.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio indicates significant variability and an overall upward trend, moving from 12.88 to a high of 51.94. The ratio spikes in late 2021 and late 2023 through 2025, suggesting that the share price is rising faster than operating profits per share during these intervals. The high ratios could indicate market expectations of future growth, but also imply a higher valuation that may increase investment risk if profits do not catch up.

Overall Insights

The data reflect a market environment where growing share prices outpace the rise in operating profit per share, driving valuation multiples higher. While the operating profit per share shows consistent improvement, the pronounced increases in the share price, especially in the latter part of the timeline, elevate the P/OP ratio substantially. Investors may be pricing in strong future growth potential or innovations, but the elevated multiples warrant careful monitoring of profitability trends to ensure valuation remains justified.

The analysis of the quarterly financial data reveals several notable trends related to the share price, sales per share, and price-to-sales (P/S) ratio over the observed periods.

Share Price (in US$)

The share price exhibits a general upward trajectory with some fluctuations. Initial values around $60.94 to $60.61 indicate a somewhat stable early period, followed by a notable increase reaching peaks above $100 by late 2021. Subsequently, the price displays periods of volatility, with dips observed around early to mid-2022. From late 2022 onward, the share price sharply rises, culminating in a substantial increase to over $328 by mid-2025. This suggests heightened market valuation or investor confidence in the later periods.

Sales per Share (in US$)

Sales per share demonstrate a steady and consistent growth over time. Starting from $13.04, the sales per share gradually increase each quarter, reaching approximately $20.77 by mid-2025. This gradual rise indicates ongoing revenue growth on a per-share basis, reflecting either improved sales performance or efficient share management policies such as share buybacks.

Price-to-Sales (P/S) Ratio

The P/S ratio shows considerable variability, mirroring fluctuations in the relationship between share price and sales per share. Early periods suggest moderate ratios around 4.5 to 6.6, followed by a decline mid-2021 to mid-2022 indicating a potential correction or moderation in valuation relative to sales. From late 2022 onwards, the P/S ratio increases sharply, reaching as high as 15.81 by mid-2025. This escalation denotes that share price growth is outpacing sales growth significantly, which could imply elevated market expectations for future earnings or strategic positioning.

Overall, the data paints a picture of steady sales growth set against a strongly appreciating share price, leading to expanded valuation multiples. The sharp increases in share price and P/S ratio in recent periods warrant further investigation to understand underlying drivers such as investor sentiment, market conditions, or company-specific developments.

The analysis of the quarterly financial data reveals significant fluctuations and trends in the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the observed periods.

Share Price

The share price demonstrates an overall upward trend with notable volatility. Beginning at $60.94, the price increased steadily, peaking at $102.63 by November 2021, before experiencing a decline reaching a low of $67.68 in May 2022. Subsequently, the price recovered and climbed substantially to reach a peak of $328.33 by August 2025. The long-term trajectory indicates strong growth, although intermediary fluctuations suggest periods of market uncertainty or company-specific challenges.

Book Value Per Share (BVPS)

The BVPS shows a contrasting pattern initially, with values starting at $3.16 but declining sharply into negative territory from August 2021 through early 2023, hitting a nadir of -$3.78. This negative trend reflects a period of eroded shareholder equity. From early 2023 onwards, a recovery is evident as BVPS turns positive and grows steadily, reaching $8.50 by August 2025. This recovery phase indicates a strengthening balance sheet and improved asset position over time.

Price-to-Book Value (P/BV) Ratio

The P/BV ratio exhibits extreme volatility, influenced heavily by the fluctuations in BVPS. Initially, ratios ranged from approximately 19.31 to 41.57, indicative of a market valuation well above book value. The absence of some data points in mid-periods corresponds with negative or negligible book values, complicating the ratio's calculation. From May 2023 onward, with BVPS recovering, the ratio spikes dramatically to as high as 308.71, then gradually declines to still elevated levels between 24 and 39 by August 2025. These elevated ratios suggest that the market consistently values the company’s shares at a substantial premium over the book value, possibly reflecting high growth expectations or intangible assets not captured on the balance sheet.

In summary, while the share price and BVPS underwent phases of volatility and recovery, the P/BV ratio’s behavior highlights the disconnect periods between market valuation and accounting book value, especially when book value was negative or low. The strong rise in share price coupled with the gradual improvement in BVPS in later periods suggests restored investor confidence and improving financial fundamentals.