Is Oracle Corporation (ORCL) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Technology sector peers in our coverage

63% Discount TTM fundamentals · sector averages from covered peers

ORCL trades at 29.3× TTM earnings — a 63% discount to its Technology sector average of 78.1× in our coverage.

The Numbers

P/E (TTM)

29.3×

Sector avg: 78.1×

P/S (TTM)

6.2×

Sector avg: 18.5×

Market Cap

$363.31B

EPS (TTM): $4.32

Revenue (TTM)

$59.02B

Net income: $12.63B

Technology Peer Comparison

How ORCL's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock	Price	P/E (TTM)	P/S (TTM)	Market Cap
ORCL This page	$126.41	29.3×	6.2×	$363.31B
NVDA NVIDIA Corporation	$202.77	50.2×	26.3×	$4.93T
AAPL Apple Inc.	$333.66	42.2×	11.2×	$4.90T
MSFT Microsoft Corporation	$393.89	24.6×	9.6×	$2.92T
AVGO Broadcom Inc.	$370.92	77.8×	27.5×	$1.76T
AMD Advanced Micro Devices Inc.	$495.65	187.0×	23.3×	$808.11B
INTC Intel Corporation	$94.98	—	9.0×	$474.44B
CSCO Cisco Systems Inc.	$111.92	43.2×	7.7×	$442.21B
PLTR Palantir Technologies Inc.	$132.35	307.8×	81.0×	$315.45B
TXN Texas Instruments Inc.	$283.97	52.1×	14.6×	$257.72B
QCOM Qualcomm Inc.	$171.79	34.7×	4.1×	$183.30B
CRM Salesforce Inc.	$170.83	24.8×	4.1×	$160.07B
ADBE Adobe Inc.	$237.22	14.2×	4.1×	$97.38B

Is the Discount Justified?

July 12, 2026

Oracle Corporation's trailing twelve-month (TTM) P/E of 32.6x is at a discount compared to the Technology sector average of 76.4x. This valuation dynamic exists despite Oracle's strong performance, particularly in its cloud business. The company reported exceptional Q3 fiscal 2026 results, with total revenue increasing 22% year-over-year, primarily driven by a 44% surge in cloud revenue, including an 84% jump in cloud infrastructure. Notably, AI-related infrastructure revenue skyrocketed 243%. Oracle's remaining performance obligations, a measure of future contracted revenue, dramatically increased to $553 billion, signaling robust demand. The company has also made strides in enterprise applications, surpassing SAP as the top ERP vendor. While the integration of Cerner into Oracle Health is a strategic focus, it has faced implementation challenges, which, alongside the competitive enterprise software landscape, may contribute to the current valuation discount relative to the broader sector.

Sources

Frequently Asked Questions

Is ORCL overvalued or undervalued?

On trailing-twelve-month earnings, ORCL trades at 29.3x versus a Technology sector average of 78.1x in our coverage — a 62.5% discount. Whether that's justified depends on growth, margins, and risk; see the context above.

What does the P/E ratio tell you?

Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.

Why compare against the sector average?

Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing ORCL with its own Technology peers is more informative than comparing against the whole market.

Is a cheap stock automatically a good buy?

No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Technology names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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