Discounted Cash Flow (DCF) Analysis Levered
Oracle Corporation (ORCL)
$109.85
+2.37 (+2.21%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 39,831 | 39,506 | 39,068 | 40,479 | 42,440 | 43,132.99 | 43,837.30 | 44,553.11 | 45,280.60 | 46,019.98 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 15,386 | 14,551 | 13,139 | 15,887 | 9,539 | 14,735.58 | 14,976.19 | 15,220.73 | 15,469.27 | 15,721.86 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,736 | -1,660 | -1,564 | -2,135 | -4,511 | -2,455.74 | -2,495.84 | -2,536.59 | -2,578.01 | -2,620.11 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 13,650 | 12,891 | 11,575 | 13,752 | 5,028 | 12,279.84 | 12,480.36 | 12,684.14 | 12,891.26 | 13,101.76 |
Weighted Average Cost Of Capital
| Share price | $ 109.85 |
|---|---|
| Beta | 0.996 |
| Diluted Shares Outstanding | 2,786 |
| Cost of Debt | |
| Tax Rate | 12.18 |
| After-tax Cost of Debt | 3.19% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.445 |
| Total Debt | 75,859 |
| Total Equity | 306,042.10 |
| Total Capital | 381,901.10 |
| Debt Weighting | 19.86 |
| Equity Weighting | 80.14 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 39,831 | 39,506 | 39,068 | 40,479 | 42,440 | 43,132.99 | 43,837.30 | 44,553.11 | 45,280.60 | 46,019.98 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 15,386 | 14,551 | 13,139 | 15,887 | 9,539 | 14,735.58 | 14,976.19 | 15,220.73 | 15,469.27 | 15,721.86 |
| Capital Expenditure | -1,736 | -1,660 | -1,564 | -2,135 | -4,511 | -2,455.74 | -2,495.84 | -2,536.59 | -2,578.01 | -2,620.11 |
| Free Cash Flow | 13,650 | 12,891 | 11,575 | 13,752 | 5,028 | 12,279.84 | 12,480.36 | 12,684.14 | 12,891.26 | 13,101.76 |
| WACC | ||||||||||
| PV LFCF | 11,433.74 | 10,819.78 | 10,238.78 | 9,688.98 | 9,168.71 | |||||
| SUM PV LFCF | 51,350 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.40 |
| Free cash flow (t + 1) | 13,363.79 |
| Terminal Value | 247,477.66 |
| Present Value of Terminal Value | 173,186.73 |
Intrinsic Value
| Enterprise Value | 224,536.73 |
|---|---|
| Net Debt | 54,476 |
| Equity Value | 170,060.73 |
| Shares Outstanding | 2,786 |
| Equity Value Per Share | 61.04 |