Discounted Cash Flow (DCF) Analysis Levered
Oracle Corporation (ORCL)
$104.62
-0.26 (-0.25%)
All numbers are in Millions, Currency in USD
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 | 39,506 | 39,068 | 40,479 | 42,440 | 49,954 | 53,082.67 | 56,407.30 | 59,940.15 | 63,694.27 | 67,683.51 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 14,551 | 13,139 | 15,887 | 9,539 | 17,165 | 17,681.74 | 18,789.16 | 19,965.95 | 21,216.44 | 22,545.25 |
| 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 | 12,891 | 11,575 | 13,752 | 5,028 | 8,470 | 13,274.32 | 14,105.71 | 14,989.16 | 15,927.95 | 16,925.53 |
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 | 39,506 | 39,068 | 40,479 | 42,440 | 49,954 | 53,082.67 | 56,407.30 | 59,940.15 | 63,694.27 | 67,683.51 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 14,551 | 13,139 | 15,887 | 9,539 | 17,165 | 17,681.74 | 18,789.16 | 19,965.95 | 21,216.44 | 22,545.25 |
| 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 | 12,891 | 11,575 | 13,752 | 5,028 | 8,470 | 13,274.32 | 14,105.71 | 14,989.16 | 15,927.95 | 16,925.53 |
| WACC | ||||||||||
| PV LFCF | 12,296.73 | 12,104.57 | 11,915.42 | 11,729.22 | 11,545.94 | |||||
| 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 |