Highly Regarded

Is Oracle Corporation (ORCL) Stock Undervalued or Overvalued?

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

68% Discount TTM fundamentals · sector averages from covered peers

ORCL trades at 31.1× TTM earnings — a 68% discount to its Technology sector average of 96.5× in our coverage.

The Numbers

P/E (TTM)

31.1×

Sector avg: 96.5×

P/S (TTM)

6.5×

Sector avg: 22.7×

Market Cap

$386.57B

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)
ORCL This page $134.50 31.1×
NVDA $217.23 53.8×
AAPL $341.95 43.3×
MSFT $539.24 33.7×
AVGO $344.31 72.2×
AMD $562.16 212.1×
PLTR $200.48 466.2×
INTC $95.36 —
CSCO $109.85 42.4×
TXN $279.15 51.2×
CRM $246.71 35.8×
QCOM $178.39 36.0×
ADBE $251.65 15.1×

Is the Discount Justified?

October 4, 2026

Oracle's P/E of 33.0x, significantly below the sector average of 91.7x, suggests a more mature growth profile compared to some technology peers. The company's valuation is influenced by its ongoing transition to cloud services, particularly the growth of Oracle Cloud Infrastructure (OCI), which is a key focus for future revenue expansion. Integration of acquisitions, such as Cerner, is also a factor in its financial performance and market perception. While the enterprise software market remains competitive, Oracle's established customer base and strategic cloud initiatives aim to drive consistent, albeit potentially slower, growth. The discount may reflect market skepticism about the pace of cloud adoption or competitive pressures.

Sources

Frequently Asked Questions

Is ORCL overvalued or undervalued?
On trailing-twelve-month earnings, ORCL trades at 31.1x versus a Technology sector average of 96.5x in our coverage — a 67.7% 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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