Discounted Cash Flow (DCF) Analysis Unlevered

Oracle Corporation (ORCL)

$90.14

+2.13 (+2.42%)

All numbers are in Millions, Currency in USD

Stock DCF: 66.86 | 90.14 | overvalue

Operating Data

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 (%)
EBITDA	17,701	17,269	17,026	18,411	13,526	18,037.07	18,331.60	18,630.93	18,935.15	19,244.34
EBITDA (%)
EBIT	14,916	14,350	14,058	15,495	10,404	14,885.10	15,128.16	15,375.18	15,626.24	15,881.40
EBIT (%)
Depreciation	2,785	2,919	2,968	2,916	3,122	3,151.97	3,203.44	3,255.75	3,308.91	3,362.94
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	67,261	37,827	43,057	46,554	21,902	46,707.95	47,470.63	48,245.77	49,033.56	49,834.22
Total Cash (%)
Account Receivables	5,279	5,134	5,551	5,409	5,953	5,852.88	5,948.45	6,045.58	6,144.30	6,244.63
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	529	580	637	745	1,317	808.35	821.55	834.96	848.59	862.45
Accounts Payable (%)
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 (%)

Weighted Average Cost Of Capital

Share price	$ 90.14
Beta	1.008
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	8.286
Total Debt	75,859
Total Equity	251,130.04
Total Capital	326,989.04
Debt Weighting	23.20
Equity Weighting	76.80
Wacc

Build Up Free Cash

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
EBITDA	17,701	17,269	17,026	18,411	13,526	18,037.07	18,331.60	18,630.93	18,935.15	19,244.34
EBIT	14,916	14,350	14,058	15,495	10,404	14,885.10	15,128.16	15,375.18	15,626.24	15,881.40
Tax Rate	70.33%	9.66%	15.98%	-5.75%	12.18%	20.48%	20.48%	20.48%	20.48%	20.48%
EBIAT	4,425.86	12,963.89	11,811.14	16,385.44	9,136.31	11,836.39	12,029.67	12,226.09	12,425.73	12,628.63
Depreciation	2,785	2,919	2,968	2,916	3,122	3,151.97	3,203.44	3,255.75	3,308.91	3,362.94
Accounts Receivable	-	145	-417	142	-544	100.12	-95.57	-97.13	-98.72	-100.33
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	51	57	108	572	-508.65	13.20	13.41	13.63	13.86
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
UFCF	5,474.86	14,418.89	12,855.14	17,416.43	7,775.32	12,124.09	12,654.90	12,861.53	13,071.55	13,284.99
WACC
PV UFCF						11,320.35	11,032.64	10,469.46	9,935.03	9,427.88
SUM PV UFCF										52,185.36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.10
Free cash flow (t + 1)	13,550.69
Terminal Value	265,699.77
Present Value of Terminal Value	188,557.51

Intrinsic Value

Enterprise Value	240,742.86
Net Debt	54,476
Equity Value	186,266.86
Shares Outstanding	2,786
Equity Value Per Share	66.86