Discounted Cash Flow (DCF) Analysis Levered
Oracle Corporation (ORCL)
$68.63
+1.59 (+2.37%)
All numbers are in Millions, Currency in USD
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 | 37,728 | 39,831 | 39,506 | 39,068 | 40,479 | 41,213.81 | 41,961.95 | 42,723.68 | 43,499.23 | 44,288.87 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 14,126 | 15,386 | 14,551 | 13,139 | 15,887 | 15,313.48 | 15,591.46 | 15,874.49 | 16,162.65 | 16,456.05 |
| 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 | 12,105 | 13,650 | 12,891 | 11,575 | 13,752 | 13,401.59 | 13,644.87 | 13,892.56 | 14,144.75 | 14,401.52 |
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 | 37,728 | 39,831 | 39,506 | 39,068 | 40,479 | 41,213.81 | 41,961.95 | 42,723.68 | 43,499.23 | 44,288.87 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 14,126 | 15,386 | 14,551 | 13,139 | 15,887 | 15,313.48 | 15,591.46 | 15,874.49 | 16,162.65 | 16,456.05 |
| 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 | 12,105 | 13,650 | 12,891 | 11,575 | 13,752 | 13,401.59 | 13,644.87 | 13,892.56 | 14,144.75 | 14,401.52 |
| WACC | ||||||||||
| PV LFCF | 12,688.50 | 12,231.42 | 11,790.82 | 11,366.08 | 10,956.64 | |||||
| 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 |