| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 121.80 | -13 |
| Intrinsic value (DCF) | 113.49 | -19 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 62.40 | -56 |
Oracle Corporation (ORC.DE) is a global leader in enterprise software and cloud solutions, providing a comprehensive suite of products designed to optimize IT environments for businesses, governments, and educational institutions. Headquartered in Austin, Texas, Oracle specializes in cloud-based applications, including ERP, human capital management, supply chain management, and autonomous database solutions. The company also offers infrastructure technologies such as Oracle Database, Java, and middleware, alongside hardware products like engineered systems and storage solutions. With a strong focus on innovation, Oracle has expanded its cloud services, including Oracle Cloud Infrastructure (OCI), to compete with major cloud providers. The company serves diverse industries, leveraging direct and indirect sales channels to maintain its market presence. Oracle's robust portfolio, combined with its extensive support and consulting services, positions it as a key player in the rapidly evolving enterprise software and cloud computing sectors.
Oracle presents a compelling investment case due to its strong market position in enterprise software and cloud services, consistent revenue growth, and expanding cloud infrastructure offerings. The company's diversified product portfolio, including high-margin cloud applications and autonomous database solutions, provides resilience against economic downturns. However, investors should consider risks such as high debt levels (€86.9B) and intense competition from larger cloud providers like AWS and Microsoft Azure. Oracle's beta of 1.276 indicates higher volatility compared to the broader market. The company's dividend yield (€1.54 per share) and strong operating cash flow (€18.7B) may appeal to income-focused investors, but capital expenditures (€6.9B) remain significant as Oracle continues to invest in cloud infrastructure.
Oracle competes in the highly competitive enterprise software and cloud infrastructure markets, where differentiation is key. Its primary competitive advantage lies in its integrated stack of cloud applications, databases, and infrastructure, which allows seamless interoperability for enterprise clients. Oracle Autonomous Database is a standout product, leveraging AI to reduce administrative overhead, giving it an edge over traditional database providers. However, Oracle faces stiff competition in cloud infrastructure, where it lags behind AWS, Microsoft Azure, and Google Cloud in market share. The company's strength in enterprise ERP and SaaS applications (e.g., NetSuite, Fusion) helps retain large corporate clients, but it must continue innovating to fend off rivals like SAP and Workday. Oracle’s direct sales model and deep industry expertise provide a moat in vertical-specific solutions, though its historically high licensing costs have pushed some customers toward open-source or subscription-based alternatives. The company’s shift to cloud-native architectures and aggressive M&A strategy (e.g., Cerner acquisition) aim to bolster its competitive positioning.