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OracleORCL +1.77%88 Earnings Yield (Joel Greenblatt) % is 3.10% as of May. 2026, which is 41% below its 10-year median of 5.25. GuruFocus rates ORCL with a GF Score™ of 88/100 and a GF Value™ of $186.27 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,907 Software companies, Oracle ranks better than 63.19% on this metric.
Oracle's Enterprise Value for the quarter that ended in May. 2026 was $780,043 Mil.
Oracle's EBIT for the trailing twelve months (TTM) ended in May. 2026 was $24,153 Mil. Oracle's Earnings Yield (Joel Greenblatt) for the quarter that ended in May. 2026 was 3.10%.
The historical rank and industry rank for Oracle's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
ORCL'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 1.82 Med: 5.25 Max: 8.9
Current: 4.89
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Oracle was 8.90%. The lowest was 1.82%. And the median was 5.25%.
ORCL's Earnings Yield (Joel Greenblatt) % is ranked better than 63.19% of 2907
companies
in the Software industry
Industry Median: 2.04
vs ORCL: 4.89
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Oracle's Forward Rate of Return (Yacktman) % for the quarter that ended in May. 2026 was 15.77%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Oracle Earnings Yield (Joel Greenblatt) % Related Terms
Oracle Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Oracle's Earnings Yield (Joel Greenblatt) % 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.
For the Software - Infrastructure subindustry, Oracle's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Oracle's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Oracle's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Oracles Earnings Yield (Joel Greenblatt) for the fiscal year that ended in May. 2026 is calculated as
Oracle's EBIT for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $24,153 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 3.10% mean?
Oracle (ORCL) has a Earnings Yield (Joel Greenblatt) % of 3.10% as of May. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Oracle and its competitors. This is 41% below median its historical median of 5.25. Over the past decade, Oracle's Earnings Yield (Joel Greenblatt) % has ranged from 1.82 to 8.90. According to the industry distribution chart, Oracle ranks #1070 out of 2907 companies in the Software industry, placing it in the top 36.8%.
Is Oracle's Earnings Yield (Joel Greenblatt) % too high?
Oracle's current Earnings Yield (Joel Greenblatt) % of 3.10% is 41% below median its 10-year median of 5.25. Over the past 10 years, this metric has ranged from a low of 1.82 to a high of 8.90. The Software industry median Earnings Yield (Joel Greenblatt) % is 2.04. Oracle's value of 3.10% is 52% above this industry median. Based on the distribution chart, Oracle ranks #1070 out of 2907 companies in the Software industry, which is above the industry midpoint. Overall, Oracle has a GF Score™ of 88/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Oracle's Earnings Yield (Joel Greenblatt) % compare to PLTR and PANW?
According to the Software industry distribution chart, Oracle ranks #1070 out of 2907 companies for Earnings Yield (Joel Greenblatt) %. This puts Oracle in the upper half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 2.04. Oracle's value of 3.10% is 52% above this benchmark. Historically, Oracle's own Earnings Yield (Joel Greenblatt) % has ranged from 1.82 to 8.90 over the past decade. While the company's 10-year median is 5.25 vs. the industry median of 2.04, Oracle has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Software company?
The median Earnings Yield (Joel Greenblatt) % among Software companies is 2.04, based on 2,907 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Oracle's current Earnings Yield (Joel Greenblatt) % of 3.10% is 52% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Oracle and its competitors. For the Software industry, the median Earnings Yield (Joel Greenblatt) % is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oracle's current Earnings Yield (Joel Greenblatt) % is 3.10%, which is 41% below median its own 10-year median of 5.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oracle stock overvalued right now?
Based on GuruFocus' analysis, Oracle (ORCL) is currently considered Possible Value Trap. The stock's GF Value™ is $186.27, compared to a current price of $126.41 — trading 32.1% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 3.10%, which is 41% below median its 10-year median of 5.25 and 52% above the Software industry median of 2.04. Oracle's overall GF Score™ is 88/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Oracle (ORCL), the current Earnings Yield (Joel Greenblatt) % is 3.10% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Oracle (ORCL) Overvalued in 2026?
Based on GuruFocus' analysis, Oracle stock appears to be undervalued.
The current stock price of $126.41 is trading 32.1% below its estimated GF Value™ of $186.27.
GuruFocus considers Oracle to be Possible Value Trap.
Key valuation signals for ORCL:
Earnings Yield (Joel Greenblatt) %: 3.10% (41% below median its 10-year median of 5.25)
GF Value™: $186.27 vs. price of $126.41 (32.1% below fair value)
Industry Position: 52% above the Software median (#1070 of 2907)
No single metric tells the full story. See the ORCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Oracle provides enterprise applications and infrastructure offerings through a variety of flexible IT deployment models, including on-premises, cloud-based, and hybrid. Founded in 1977, Oracle pioneered the first commercial SQL-based relational database management system, which is commonly used by the world's largest companies for high-volume online transaction processing workloads. Besides databases, Oracle also sells enterprise resource planning platforms and cloud infrastructure that play an increasingly important role in large language model training and inferencing.
88GF Score
Get the complete analysis for ORCL
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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