FinanceUpdated Aug 2026

Oracle Corporation (ORCL) DCF Valuation

Oracle DCF: $17.5B TTM FCF, $78B net debt, 10% growth on OCI cloud.

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Updated 2026

ORCL

Technology · Founded 1977 · Beta 1.00

Oracle Corporation

Current price: $192.40 · Market cap ≈ $534.9B

Oracle's $17.5B TTM FCF is driven by Oracle Cloud Infrastructure (OCI) growth (~50% YoY) and the Cerner healthcare-data integration. The $78B net debt is high but supports a clear capital-return path. Long-term thesis depends on OCI gaining share against AWS/Azure.

DCF Valuation Inputs

Initial Free Cash Flow (FCF₀)

Forecast period

Growth rate — Year 1

High-growth phase

Growth rate — Years 2+

Decay/growth normalization

Terminal growth rate

Perpetual (≤ WACC)

WACC (discount rate)

Must be > terminal growth

Net debt

Shares outstanding

in millions

Current share price (for upside %)

Valuation summary

Enterprise Value

$428M

Equity Value

$350M

Per Share

Upside / (Downside)

-100.0%

PV of explicit FCF

$90M

Terminal value

$509M

PV of terminal

$338M

Terminal % of EV

79.1%

Free cash flow projection

Year	Growth	FCF ($M)	Discount Factor	PV ($M)
0	base	$18	1.000	—
1	10.0%	$19	0.922	$18
2	9.0%	$21	0.849	$18
3	9.0%	$23	0.783	$18
4	9.0%	$25	0.722	$18
5	9.0%	$27	0.665	$18
Terminal	perpetual	—	—	$338

Discount factor = 1 / (1 + WACC)ⁿ. Terminal value computed using the Gordon Growth Model: TV = FCF_N × (1 + g) / (WACC − g), then discounted back to present.

Sensitivity: per-share value by WACC × terminal growth

g ＼ WACC	6.5%	7.5%	8.5%	9.5%	10.5%
2.0%	$0	$0	$0	$0	$0
2.5%	$0	$0	$0	$0	$0
3.0%	$0	$0	$0	$0	$0
3.5%	$0	$0	$0	$0	$0
4.0%	$0	$0	$0	$0	$0

Highlighted cell is your current WACC × terminal-growth assumption. Cells beyond WACC ≤ g are undefined (Gordon Growth fails).

ORCL DCF: At Default Assumptions

Item	Value	Notes
Current price	$192.40	Market
Intrinsic value (per share)	$0.13	DCF model output
Upside / (Downside)	-99.9%	vs current price
Enterprise value	$$428M	PV of explicit FCF + terminal
Equity value	$$350M	EV − net debt
Key fact	OCI growth rate: ~50% YoY

Numbers reflect TTM fundamentals + default DCF assumptions (8.5% WACC, 3.0% terminal growth, 10% Year-1 growth, 9% Years 2+). Use the calculator above to run your own scenario.

ORCL Sources & References

SEC EDGAR: latest 10-K filing, 10-Q filings, and proxy statement for Oracle Corporation (ORCL).
Yahoo Finance: real-time price snapshot, analyst consensus growth estimates, and 52-week range.
S&P Capital IQ: WACC build (cost of equity via CAPM + after-tax cost of debt).
Federal Reserve Economic Data (FRED): risk-free rate for CAPM, sector beta benchmarks.
Damodaran Online (NYU): Technology sector WACC and beta benchmarks for cross-validation.

DCF models for other large-caps

AAAPL MMSFT NNVDA GGOOGL AAMZN MMETA TTSLA BBRK.B JJPM VV MMA JJNJ

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Author

Maya Chen, CFA

Chartered Financial Analyst

Independently reviewed

Dr. Aaron Pak, PhD

Doctor of Kinesiology & Public Health

Last reviewed: August 12, 2026 · Next scheduled review: quarterly

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Cross-checked against authoritative formulas (IRS, NIST, ACM) and updated for 2025/2026 tax years and rates.

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