Highly Regarded

Is Oracle Corporation (ORCL) Stock Undervalued or Overvalued?

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

62% Discount TTM fundamentals · sector averages from covered peers

ORCL trades at 34.5× TTM earnings — a 62% discount to its Technology sector average of 90.5× in our coverage.

The Numbers

P/E (TTM)

34.5×

Sector avg: 90.5×

P/S (TTM)

7.3×

Sector avg: 21.7×

Market Cap

$428.64B

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 $149.14 34.5×
NVDA $220.92 54.7×
AAPL $316.83 40.1×
MSFT $507.14 31.7×
AVGO $370.45 77.7×
AMD $470.95 177.7×
INTC $89.54 —
PLTR $186.32 433.3×
CSCO $110.47 42.7×
CRM $257.65 37.4×
TXN $260.82 47.9×
QCOM $170.46 34.4×
ADBE $292.76 17.5×

Is the Discount Justified?

August 30, 2026

Oracle's P/E ratio of 34.9x is notably below the Technology sector average of 85.4x. This valuation reflects a company in transition, with strong growth in its cloud businesses offsetting slower legacy segments. For fiscal year 2026, total revenues increased 17% to $67.4 billion, driven by a 39% rise in cloud revenues, particularly a 77% surge in Cloud Infrastructure (IaaS). Remaining Performance Obligations (RPO) reached a record $638 billion, largely fueled by significant AI contracts. Oracle has raised its fiscal year 2027 total revenue guidance to $90 billion. The discount may be attributed to the drag from its declining software revenues, but accelerating cloud and AI adoption are key drivers for future growth.

Sources

Frequently Asked Questions

Is ORCL overvalued or undervalued?
On trailing-twelve-month earnings, ORCL trades at 34.5x versus a Technology sector average of 90.5x in our coverage — a 61.8% 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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