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Oracle DCF Stock Analysis. Buy or Sell?
Oracle DCF Stock Analysis.
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Oracle’s DCF Stock Analysis
Here’s my assumptions for $ORCL ( ▼ 2.75% ) :
Risk Free Rate (10 Years Interest Rate Swap): 4.15%
Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%
Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 3%
Last 24 Months Beta: 1.4
Historical Data
Revenue growth in the last 10 years (CAGR): 4.48%
Earnings growth in the last 10 years (CAGR): 3.40%
Unlevered Free Cash Flow growth in the last 10 years (CAGR): -12.25%
Future Assumptions
End of Year FCF growth: 40%
Growth until end of 2026: 70%
Growth until end of 2034: 15%
Perpetual growth: 3.1%
Net Debt: 97.749B
Outstanding Stock Options Present Value Assumption: $7.971B
Restricted Stock Units Present Value Assumption: $28.889B
Stock Valuation based on these assumptions: $199
Last update 07/28/2025
All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.
I don’t have a position in Oracle (ORCL) and I don’t plan to add a position in the coming days.