ORCL  Oracle Corporation






Computer Software: Prepackaged Software

Market Cap.

Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for ORCL to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate ORCL's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$49.25 Current Price

$38.46 Growth Price (DCF)

Overvalued by 21.91%

Growth Rate Assumed by Market: 16.46%

Future Free Cash Flow Growth Rate: 7.9%

Discount Rate: 15.0%

Show Free Cash Flow numbers

$8.65 Stability Price (EPV)

Overvalued by 82.44%

Discount Rate: 15.0%

$51.60 Book Price

Fairly valued