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Oracle (WBO:ORCL) Cyclically Adjusted Price-to-FCF : 31.93 (As of May. 16, 2024)


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What is Oracle Cyclically Adjusted Price-to-FCF?

As of today (2024-05-16), Oracle's current share price is €112.06. Oracle's Cyclically Adjusted FCF per Share for the quarter that ended in Feb. 2024 was €3.51. Oracle's Cyclically Adjusted Price-to-FCF for today is 31.93.

The historical rank and industry rank for Oracle's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

WBO:ORCL' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 14.58   Med: 19.25   Max: 33.63
Current: 31.83

During the past years, Oracle's highest Cyclically Adjusted Price-to-FCF was 33.63. The lowest was 14.58. And the median was 19.25.

WBO:ORCL's Cyclically Adjusted Price-to-FCF is ranked worse than
53.85% of 676 companies
in the Software industry
Industry Median: 28.905 vs WBO:ORCL: 31.83

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Oracle's adjusted free cash flow per share data for the three months ended in Feb. 2024 was €1.250. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is €3.51 for the trailing ten years ended in Feb. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Oracle Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Oracle's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Oracle Cyclically Adjusted Price-to-FCF Chart

Oracle Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.94 17.11 22.44 19.66 28.27

Oracle Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.66 28.27 31.59 31.00 29.41

Competitive Comparison of Oracle's Cyclically Adjusted Price-to-FCF

For the Software - Infrastructure subindustry, Oracle's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Oracle's Cyclically Adjusted Price-to-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Oracle's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Oracle's Cyclically Adjusted Price-to-FCF falls into.



Oracle Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Oracle's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=112.06/3.51
=31.93

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Oracle's Cyclically Adjusted FCF per Share for the quarter that ended in Feb. 2024 is calculated as:

For example, Oracle's adjusted Free Cash Flow per Share data for the three months ended in Feb. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=1.25/129.4194*129.4194
=1.250

Current CPI (Feb. 2024) = 129.4194.

Oracle Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201405 0.686 100.373 0.885
201408 1.078 100.352 1.390
201411 0.149 99.635 0.194
201502 0.371 99.032 0.485
201505 0.788 100.333 1.016
201508 1.106 100.548 1.424
201511 0.069 100.135 0.089
201602 0.663 100.040 0.858
201605 0.754 101.355 0.963
201608 1.178 101.617 1.500
201611 0.073 101.829 0.093
201702 0.505 102.779 0.636
201705 0.840 103.256 1.053
201708 1.205 103.587 1.505
201711 0.050 104.072 0.062
201802 0.594 105.052 0.732
201805 0.873 106.148 1.064
201808 1.373 106.383 1.670
201811 0.029 106.338 0.035
201902 0.589 106.649 0.715
201905 1.025 108.048 1.228
201908 1.480 108.245 1.770
201911 0.045 108.519 0.054
202002 0.733 109.139 0.869
202005 0.922 108.175 1.103
202008 1.500 109.662 1.770
202011 0.228 109.793 0.269
202102 0.909 110.968 1.060
202105 1.154 113.576 1.315
202108 1.286 115.421 1.442
202111 -1.498 117.269 -1.653
202202 0.878 119.703 0.949
202205 0.883 123.323 0.927
202208 1.680 124.958 1.740
202211 -0.567 125.607 -0.584
202302 0.554 126.928 0.565
202305 1.230 128.314 1.241
202308 1.839 129.538 1.837
202311 -0.307 129.548 -0.307
202402 1.250 129.419 1.250

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Oracle  (WBO:ORCL) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Oracle Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Oracle's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Oracle (WBO:ORCL) Business Description

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Oracle provides database technology and enterprise resource planning, or ERP, software to enterprises around the world. Founded in 1977, Oracle pioneered the first commercial SQL-based relational database management system. Today, Oracle has 430,000 customers in 175 countries, supported by its base of 136,000 employees.

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