Discounted Cash Flow (DCF) Analysis Levered

Oracle Corporation (ORCL)

$104.62

-0.26 (-0.25%)
All numbers are in Millions, Currency in USD
Stock DCF: 63.84 | 104.62 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 39,50639,06840,47942,44049,95453,082.6756,407.3059,940.1563,694.2767,683.51
Revenue (%)
Operating Cash Flow 14,55113,13915,8879,53917,16517,681.7418,789.1619,965.9521,216.4422,545.25
Operating Cash Flow (%)
Capital Expenditure -1,660-1,564-2,135-4,511-8,695-4,407.42-4,683.46-4,976.79-5,288.49-5,619.71
Capital Expenditure (%)
Free Cash Flow 12,89111,57513,7525,0288,47013,274.3214,105.7114,989.1615,927.9516,925.53

Weighted Average Cost Of Capital

Share price $ 104.62
Beta 0.991
Diluted Shares Outstanding 2,769.71
Cost of Debt
Tax Rate 6.83
After-tax Cost of Debt 3.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.304
Total Debt 90,481
Total Equity 289,766.73
Total Capital 380,247.73
Debt Weighting 23.80
Equity Weighting 76.20
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 39,50639,06840,47942,44049,95453,082.6756,407.3059,940.1563,694.2767,683.51
Operating Cash Flow 14,55113,13915,8879,53917,16517,681.7418,789.1619,965.9521,216.4422,545.25
Capital Expenditure -1,660-1,564-2,135-4,511-8,695-4,407.42-4,683.46-4,976.79-5,288.49-5,619.71
Free Cash Flow 12,89111,57513,7525,0288,47013,274.3214,105.7114,989.1615,927.9516,925.53
WACC
PV LFCF 12,296.7312,104.5711,915.4211,729.2211,545.94
SUM PV LFCF 59,591.89

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.95
Free cash flow (t + 1) 17,264.05
Terminal Value 290,152.02
Present Value of Terminal Value 197,930.34

Intrinsic Value

Enterprise Value 257,522.22
Net Debt 80,716
Equity Value 176,806.22
Shares Outstanding 2,769.71
Equity Value Per Share 63.84