Income Statement Flow (TTM) | Source: Yahoo Finance
Source: Cash Flow Statement | LFCF = Operating Cash Flow - CapEx - Interest Expense
Fair Value: $181.41
+13.3% Upside
Stock appears undervalued with 13.3% upside to fair value. Medium confidence based on valuation spread and data quality.
Oracle Corporation (ORCL) currently trades at $160.06, representing a 13.3% discount to our calculated fair value of $181.41.
Key Strengths: High profit margins (25.3%); Low short interest; Positive analyst consensus (buy).
Key Risks: High leverage (Net Debt/EBITDA: 4.2x).
Wall Street consensus is buy with a mean price target of $279.17.
| Criterion | Status | Notes |
|---|---|---|
| ≤4 operating segments | PASS | Segment count estimated from sector classification. Verify in 10-K for accuracy. |
| Top 2 segments ≥70% of revenue | PASS | Revenue concentration estimated. Verify segment breakdown in 10-K. |
| ≤3 material geographic regions | PASS | Most US-listed companies report US vs International (2 regions). |
| No exotic debt instruments or off-balance-sheet complexity | REVIEW | Review 10-K for convertibles, derivatives, and off-balance-sheet items. |
Recommendation: REVIEW COMPLEXITY - Some filters require manual verification
Oracle Corporation offers products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offering include various cloud software applications, including Oracle Fusion cloud enterprise resource planning ERP, Oracle Fusion cloud enterprise performance management EPM, Oracle Fusion cloud supply chain and manufacturing management SCM, Oracle Fusion cloud human capital management HCM, and NetSuite applications suite, Oracle Health applications, as well as Oracle Fusion Sales, Service, and Marketing. The company also offers cloud-based industry solutions for various industries; Oracle cloud license and on-premise license; and Oracle license support services. In addition, it provides cloud and license business' infrastructure technologies, such as the Oracle Database and MySQL Database; Java, a software development language; and middleware, including development tools and others. The company's cloud and license business' infrastructure technologies also comprise cloud-based compute, storage, and networking capabilities; and Oracle autonomous database, as well as AI, Internet-of-Things, machine learning, digital assistant, and blockchain. Further, it provides hardware products and other hardware-related software offerings, including Oracle engineered systems, enterprise servers, storage solutions, industry-specific hardware, virtualization software, operating systems, management software, and related hardware support services, and consulting and advanced customer services. It markets and sells its cloud, license, hardware, support, and services offerings directly to businesses in various industries, government agencies, and educational institutions, as well as through indirect channels. Oracle Corporation has a strategic alliance with Metron, Inc. The company was founded in 1977 and is headquartered in Austin, Texas.
| Market Capitalization | $459.87B |
| (+) Total Debt | $131.73B |
| (-) Cash & Equivalents | $19.77B |
| Net Debt | $111.96B |
| Enterprise Value | $571.84B |
| Metric | Value | What It Means |
|---|---|---|
| Net Debt / EBITDA | 4.21x | High Leverage - Concern |
| Interest Coverage | 5.1x | Strong |
| Debt / Equity | 432.5% | High Leverage |
| Current Ratio | 0.91 | Review - may struggle with short-term obligations |
Overall: Balance sheet shows elevated leverage - requires careful analysis.
Industry: Software - Infrastructure | Data: TTM (Trailing 12 Months) as of 2026-02-02 | Source: Yahoo Finance
| Company | Market Cap | P/E | Forward P/E | EV/EBITDA | Profit Margin |
|---|---|---|---|---|---|
| MSFT | $3143.8B | 26.5x | 22.4x | 18.4x | 39.0% |
| ORCL (Target) | $459.9B | 30.1x | 20.2x | 22.3x | 25.3% |
| PLTR | $352.2B | 343.6x | 145.9x | 392.0x | 28.1% |
| CRM | $200.7B | 28.1x | 16.1x | 16.9x | 17.9% |
| NOW | $124.5B | 70.7x | 23.6x | 43.3x | 13.2% |
| SNOW | $65.3B | 0.0x | 116.8x | -52.9x | -30.8% |
| Peer Average (excl. target) | - | 28.1x | 22.4x | 18.4x | 23.0% |
| Method | Inputs | Fair Value |
|---|---|---|
| Equity (TTM EPS) | EPS: $5.32 x 34.1x P/E | $181.41 |
| Equity (Forward EPS) | EPS: $7.93 x 34.1x P/E | $270.32 |
| EV-Based (EBITDA) | EBITDA: $26.62B x 22.3x | $167.63 |
| Headline Fair Value | Median value used (spread 49.7% exceeds 15% threshold) | $181.41 |
Assessment: Strong positive profile with multiple favorable factors.
ORCL trades at 30.1x TTM P/E and 20.2x Forward P/E. This compares to peer averages of 28.1x TTM and 22.4x Forward P/E.
Warning: Negative levered free cash flow indicates the company is consuming cash.
35 analysts cover this stock with a consensus buy rating. Price targets range from $155 to $400, with a mean of $279.
16.34 - Neutral/Low Fear
Score: 61/100
146.56
SPY YTD: 17.7% | RSP YTD: 12.4%
No customer/supplier data available for this company. Data is curated from SEC 10-K filings for major tech companies.
Track Record: 4 beats, 4 misses, 0 in-line out of 8 quarters | 50% Beat Rate
| Date | EPS Estimate | EPS Actual | Result | Surprise % |
|---|---|---|---|---|
| 2025-12-10 | $1.64 | $2.26 | BEAT | 38.0% |
| 2025-09-09 | $1.05 | $1.01 | MISS | -3.7% |
| 2025-06-11 | $1.64 | $1.70 | BEAT | 3.4% |
| 2025-03-10 | $1.49 | $1.47 | MISS | -1.4% |
| 2024-12-09 | $1.48 | $1.47 | MISS | -0.8% |
| 2024-09-09 | $1.33 | $1.39 | BEAT | 4.3% |
| 2024-06-11 | $1.65 | $1.63 | MISS | -1.1% |
| 2024-03-11 | $1.38 | $1.41 | BEAT | 2.5% |
All financial data sourced from:
Click any blue number throughout the report to view its source.
This analysis is generated automatically using publicly available data and should not be considered as financial advice. All figures are sourced from Yahoo Finance and may contain inaccuracies. Always verify data with primary sources (SEC filings, company IR) before making investment decisions.
Past performance does not guarantee future results. Investing involves risk, including the possible loss of principal.
Levered FCF is cash that can't be faked. Unlike earnings which can be manipulated through accounting (depreciation schedules, revenue recognition, etc.), cash flow is simple: the money is either in the bank or it's not.
This metric shows how much actual cash the company generates after paying for:
A company with strong Levered FCF can pay dividends, buy back shares, pay down debt, or invest in growth - all from real cash, not accounting profits.
Customers and suppliers report earnings BEFORE the company you're analyzing. Their results give you early signals about demand and supply chain health.
Customer Example: If Microsoft (AMD customer) beats revenue estimates by 20%, it likely means they bought more chips than analysts expected. This is bullish for AMD's upcoming earnings.
Supplier Example: If TSMC (AMD supplier) reports strong demand from AMD, that confirms AMD's production is ramping up.
By the time AMD reports, you already have data points from 5+ related companies. Smart analysts piece these together to predict earnings before they're announced.
Not all revenue is equal. Different business segments have different growth rates and profit margins.
For example, AMD's Data Center segment has ~40% margins while Gaming might be ~15%. A shift toward Data Center means higher overall profitability even if total revenue stays flat.
Watch for: