Discounted Cash Flow (DCF) Analysis Levered

Oracle Corporation (ORCL)

$109.85

+2.37 (+2.21%)
All numbers are in Millions, Currency in USD
Stock DCF: 61.04 | 109.85 | overvalue

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 39,83139,50639,06840,47942,44043,132.9943,837.3044,553.1145,280.6046,019.98
Revenue (%)
Operating Cash Flow 15,38614,55113,13915,8879,53914,735.5814,976.1915,220.7315,469.2715,721.86
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 13,65012,89111,57513,7525,02812,279.8412,480.3612,684.1412,891.2613,101.76

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 39,83139,50639,06840,47942,44043,132.9943,837.3044,553.1145,280.6046,019.98
Operating Cash Flow 15,38614,55113,13915,8879,53914,735.5814,976.1915,220.7315,469.2715,721.86
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 13,65012,89111,57513,7525,02812,279.8412,480.3612,684.1412,891.2613,101.76
WACC
PV LFCF 11,433.7410,819.7810,238.789,688.989,168.71
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