Is Oracle Corporation (ORCL) overvalued?
On Equity Rank's model estimate, ORCL trades 15% below its fair value. Oracle Corporation (ORCL) last closed at $116.10; the multi-method model fair value is $136.34.
| Price | Model fair value | Price vs model |
|---|---|---|
| $116.10 | $136.34 | 15% below |
What the answer rests on
- 4 of 9 valuation methods put ORCL's value above its price and 5 put it below, so the methods disagree.
- ORCL trades at 19.8 times its last year's earnings, against a median of 31.4 for 87 profitable Software companies.
- Over the past year the price sat below the model fair value on 86% of trading days. The gap ranged from 31% below to 6% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind ORCL's fair value · What prices assume · Other companies