The Trust Layer for Market Analysts

The valuation of Oracle (ORCL) is analyzed using a discounted cash flow model. The projected free cash flows indicate a turnaround from negative to positive figures from 2027 onwards, with significant growth anticipated by 2035. The company's cost of debt is estimated at 7.00%, and its equity cost is 13.74%, resulting in a WACC of 11.72%. The beta is 1.54, and the market risk premium is 6%. The present value of operations is calculated at $655.97 billion, and the terminal value is $1436.24 billion. Based on these inputs and factoring in a debt-to-equity ratio of 0.300, the intrinsic value per share is estimated at $195.92. Compared to the current market price of $192.00, this suggests Oracle is fairly valued with a slight undervaluation.