Is ORCL Stock Undervalued?

A comprehensive valuation analysis of Oracle Corp (ORCL) examining current multiples, intrinsic value, and comparing to analyst expectations.

Updated March 1, 2026•8 min read•View Full Analysis

Valuation Verdict

↑

Potentially Undervalued

107271198896.2% upside potential

Based on our analysis, Oracle Corp appears to be potentially undervalued at the current price of $145.40. Our fair value estimate of $155972323340.52 suggests upside potential of approximately 107271198896.2%.

Current Valuation Metrics

Valuation ratios help us understand how the market is pricing ORCL relative to its fundamentals. Let's examine the key multiples investors are paying today.

P/E Ratio

27.33

High

P/B Ratio

13.95

High

P/S Ratio

6.85

High

EV/EBITDA

18.43

High

Understanding the Metrics

P/E Ratio: At 27.33x earnings, ORCL is trading above the typical market average of 15-20x.
P/B Ratio: A P/B of 13.95 means investors pay $13.95 for every $1 of book value.
P/S Ratio: The price-to-sales ratio of 6.85 indicates how much investors value each dollar of revenue.
EV/EBITDA: This ratio of 18.43 helps compare ORCL to peers while accounting for debt.

Fair Value Estimate

Using a discounted cash flow (DCF) model, we estimate the intrinsic value of Oracle Corp stock. This fundamental analysis looks at the company's ability to generate future cash flows and discounts them back to today's value.

Current Price

$145.40

Fair Value Estimate

$155972323340.52

Implied Return+107271198896.2%

Our DCF model suggests ORCL may be undervalued by approximately 107271198896.2%. This implies the market may be pricing in more pessimistic growth expectations than our base case scenario.

Analyst Price Targets

Wall Street analysts provide price targets based on their fundamental research and models. Let's see how the consensus view compares to the current price.

Current Price

$145.40

→

Analyst Target

$269.94

Implied Upside85.7%

The consensus analyst price target of $269.94 suggests 85.7% upside potential from current levels. Analysts appear optimistic about the stock's prospects.

Investment Conclusion

Bottom Line

Based on our comprehensive valuation analysis, Oracle Corp (ORCL) appears to be undervalued at $145.40. With a fair value estimate of $155972323340.52, the stock offers potential upside for long-term investors willing to wait for the market to recognize its intrinsic value.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions. Past performance does not guarantee future results.