Discounted Cash Flow (DCF) Analysis Levered

Oracle Corporation (ORCL)

$68.63

+1.59 (+2.37%)
All numbers are in Millions, Currency in USD
Stock DCF: 103.78 | 68.63 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 37,72839,83139,50639,06840,47941,213.8141,961.9542,723.6843,499.2344,288.87
Revenue (%)
Operating Cash Flow 14,12615,38614,55113,13915,88715,313.4815,591.4615,874.4916,162.6516,456.05
Operating Cash Flow (%)
Capital Expenditure -2,021-1,736-1,660-1,564-2,135-1,911.88-1,946.59-1,981.93-2,017.90-2,054.53
Capital Expenditure (%)
Free Cash Flow 12,10513,65012,89111,57513,75213,401.5913,644.8713,892.5614,144.7514,401.52

Weighted Average Cost Of Capital

Share price $ 68.63
Beta 0.830
Diluted Shares Outstanding 3,022
Cost of Debt
Tax Rate -5.75
After-tax Cost of Debt 2.96%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.706
Total Debt 84,245
Total Equity 207,399.86
Total Capital 291,644.86
Debt Weighting 28.89
Equity Weighting 71.11
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 37,72839,83139,50639,06840,47941,213.8141,961.9542,723.6843,499.2344,288.87
Operating Cash Flow 14,12615,38614,55113,13915,88715,313.4815,591.4615,874.4916,162.6516,456.05
Capital Expenditure -2,021-1,736-1,660-1,564-2,135-1,911.88-1,946.59-1,981.93-2,017.90-2,054.53
Free Cash Flow 12,10513,65012,89111,57513,75213,401.5913,644.8713,892.5614,144.7514,401.52
WACC
PV LFCF 12,688.5012,231.4211,790.8211,366.0810,956.64
SUM PV LFCF 59,033.46

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.62
Free cash flow (t + 1) 14,689.55
Terminal Value 405,788.61
Present Value of Terminal Value 308,723.04

Intrinsic Value

Enterprise Value 367,756.49
Net Debt 54,147
Equity Value 313,609.49
Shares Outstanding 3,022
Equity Value Per Share 103.78