A FINANCIAL VALUATION OF ORACLE CORPORATION

Oracle Corporation (hereinafter referred to as Oracle, ORCL, or ‘the Company’) is an American multinational company that provides solutions of products and services that serve the enterprises’ information technology (IT) environment. This thesis is to cond uct a business analysis of the Company from a financial perspective, determining the Company’s intrinsic value as of May 31, 2021, and comparing it with the respective market value.
Thus, this thesis will study, evaluate, and present an overview of the Company, an analysis of the Company’s market, industry, strategy, financial performance, including external and internal factors, a ten-year pro forma financial statement forecast, and the techniques of using the three discounted cash flow models to estimate the intrinsic value of Oracle.
The obtained results from the three valuation models, including the Enterprise Discounted Cash Flow (EDCF) model, the Adjusted Present Value (APV) model, and the Discounted Economic Profit (DEP) model, show that the Company’s intrinsic values were estimated at $74.57, $75.21, and $74.82, respectively. When the results were used to compare with the market price of Oracle’s shares as of May 31, 2021, at $78.74, it reflects that the Company was overvalued.