Highly Regarded

Is Oracle Corporation (ORCL) Stock Undervalued or Overvalued?

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

59% Discount TTM fundamentals · sector averages from covered peers

ORCL trades at 33.3× TTM earnings — a 59% discount to its Technology sector average of 80.1× in our coverage.

The Numbers

P/E (TTM)

33.3×

Sector avg: 80.1×

P/S (TTM)

7.0×

Sector avg: 18.9×

Market Cap

$413.35B

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 $143.82 33.3×
NVDA $195.52 48.4×
AAPL $312.73 39.6×
MSFT $386.79 24.2×
AVGO $373.72 78.3×
AMD $551.70 208.2×
INTC $122.14 —
CSCO $113.98 44.0×
PLTR $132.53 308.2×
TXN $303.53 55.7×
QCOM $186.38 37.7×
CRM $165.63 24.0×
ADBE $218.11 13.1×

Is the Discount Justified?

July 6, 2026

Oracle's P/E multiple of 33.2x, a discount to the Technology sector average of 76.3x, reflects a company in transition with strong, but perhaps not universally premium-valued, growth drivers. Oracle reported record Q4 and fiscal year 2026 results, with total revenues increasing 21% and cloud revenues surging 47%, notably driven by 93% growth in Cloud Infrastructure (IaaS). The company also beat Q4 EPS estimates. While this indicates robust performance in its cloud segments, the reported decline in gross margins due to data center ramp-up costs suggests ongoing investment. The discount relative to the sector average may also reflect Oracle's more established position in the technology landscape, where some peers command higher multiples based on different growth profiles or market segments.

Sources

Frequently Asked Questions

Is ORCL overvalued or undervalued?
On trailing-twelve-month earnings, ORCL trades at 33.3x versus a Technology sector average of 80.1x in our coverage — a 58.5% 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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