Latest Ratios: P/E Ratio 25.6x · EV/EBITDA 19.3x · ROE 53.4%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $428.9B | $658.1B | $474.4B | $330.8B | $293.0B | $200.4B | $238.0B | $177.1B | $188.8B | $198.0B | $191.5B |
| Enterprise Value | $553.8B | $783.0B | $567.7B | $414.8B | $373.7B | $254.8B | $292.1B | $211.5B | $224.5B | $237.0B | $227.7B |
| P/E Ratio → | 25.58 | 38.73 | 38.14 | 31.59 | 34.51 | 29.84 | 17.31 | 17.46 | 17.04 | 54.96 | 20.54 |
| P/S Ratio | 6.37 | 9.77 | 8.27 | 6.25 | 5.87 | 4.72 | 5.88 | 4.53 | 4.78 | 4.97 | 5.08 |
| P/B Ratio | 10.10 | 15.29 | 22.62 | 35.81 | 188.32 | — | 39.98 | 13.93 | 8.44 | 4.24 | 3.53 |
| P/FCF | — | — | — | 28.02 | 34.60 | 39.85 | 17.30 | 15.30 | 14.65 | 14.51 | 15.82 |
| P/OCF | 13.41 | 20.58 | 22.79 | 17.72 | 17.07 | 21.01 | 14.98 | 13.48 | 12.98 | 12.87 | 13.56 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 11.63 | 9.89 | 7.83 | 7.48 | 6.00 | 7.22 | 5.41 | 5.68 | 5.95 | 6.03 |
| EV / EBITDA | 19.28 | 27.26 | 23.80 | 19.30 | 19.46 | 18.14 | 16.11 | 12.54 | 13.64 | 14.77 | 14.82 |
| EV / EBIT | 26.65 | 32.37 | 32.01 | 27.19 | 29.59 | 24.49 | 18.85 | 15.04 | 15.64 | 16.40 | 16.89 |
| EV / FCF | — | — | — | 35.14 | 44.13 | 50.69 | 21.24 | 18.27 | 17.41 | 17.36 | 18.81 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 65.2% | 65.2% | 70.5% | 71.4% | 72.8% | 79.1% | 80.6% | 79.7% | 79.8% | 79.8% | 80.2% |
| Operating Margin | 30.8% | 30.8% | 30.8% | 29.0% | 26.2% | 25.7% | 37.6% | 35.6% | 34.3% | 33.3% | 34.2% |
| Net Profit Margin | 25.4% | 25.4% | 21.7% | 19.8% | 17.0% | 15.8% | 34.0% | 25.9% | 28.1% | 9.0% | 25.1% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 53.4% | 53.4% | 82.4% | 193.9% | 546.5% | 7301.1% | 147.3% | 57.8% | 32.1% | 7.1% | 18.5% |
| ROA | 7.9% | 7.9% | 8.0% | 7.6% | 7.0% | 5.6% | 11.2% | 9.0% | 9.0% | 2.6% | 7.6% |
| ROIC | 11.0% | 11.0% | 12.8% | 13.1% | 15.0% | 15.1% | 21.3% | 19.8% | 14.1% | 11.3% | 12.0% |
| ROCE | 11.7% | 11.7% | 14.4% | 13.9% | 13.0% | 11.1% | 14.8% | 14.8% | 13.0% | 11.6% | 12.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.63 | 3.63 | 4.96 | 10.23 | 58.15 | — | 14.15 | 5.63 | 2.51 | 1.30 | 1.07 |
| Debt / EBITDA | 5.44 | 5.44 | 4.36 | 4.40 | 4.71 | 5.40 | 4.65 | 4.25 | 3.41 | 3.78 | 3.77 |
| Net Debt / Equity | — | 2.90 | 4.45 | 9.09 | 51.87 | — | 9.10 | 2.70 | 1.59 | 0.83 | 0.67 |
| Net Debt / EBITDA | 4.35 | 4.35 | 3.91 | 3.91 | 4.20 | 3.88 | 2.99 | 2.04 | 2.17 | 2.43 | 2.35 |
| Debt / FCF | — | — | — | 7.12 | 9.53 | 10.83 | 3.94 | 2.97 | 2.77 | 2.86 | 2.98 |
| Interest Coverage | 5.26 | 5.26 | 4.96 | 4.34 | 3.60 | 3.78 | 6.21 | 7.05 | 6.89 | 7.14 | 7.50 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.12 | 1.12 | 0.75 | 0.72 | 0.91 | 1.62 | 2.30 | 3.03 | 2.49 | 3.97 | 3.08 |
| Quick Ratio | 1.12 | 1.12 | 0.75 | 0.72 | 0.90 | 1.61 | 2.29 | 3.02 | 2.49 | 3.97 | 3.07 |
| Cash Ratio | 0.76 | 0.76 | 0.34 | 0.34 | 0.44 | 1.12 | 1.93 | 2.50 | 2.03 | 3.50 | 2.73 |
| Asset Turnover | — | 0.26 | 0.34 | 0.38 | 0.37 | 0.39 | 0.31 | 0.34 | 0.36 | 0.29 | 0.28 |
| Inventory Turnover | — | — | — | — | 45.52 | 28.27 | 55.32 | 37.62 | — | — | 24.84 |
| Days Sales Outstanding | — | 56.27 | 54.42 | 54.27 | 50.53 | 51.20 | 48.77 | 51.86 | 47.43 | 47.06 | 51.27 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.3% | 0.9% | 1.0% | 1.3% | 1.3% | 1.7% | 1.3% | 1.7% | 1.6% | 1.6% | 1.4% |
| Payout Ratio | 33.9% | 33.9% | 38.1% | 42.0% | 43.1% | 51.5% | 22.3% | 30.3% | 26.5% | 87.5% | 27.8% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.9% | 2.6% | 2.6% | 3.2% | 2.9% | 3.4% | 5.8% | 5.7% | 5.9% | 1.8% | 4.9% |
| FCF Yield | — | — | — | 3.6% | 2.9% | 2.5% | 5.8% | 6.5% | 6.8% | 6.9% | 6.3% |
| Buyback Yield | 0.0% | 0.0% | 0.3% | 1.0% | 0.9% | 8.7% | 9.1% | 11.2% | 19.4% | 6.0% | 2.0% |
| Total Shareholder Yield | 1.4% | 0.9% | 1.3% | 2.3% | 2.1% | 10.4% | 10.4% | 13.0% | 21.0% | 7.6% | 3.4% |
| Shares Outstanding | — | $2.9B | $2.9B | $2.8B | $2.8B | $2.8B | $3.0B | $3.3B | $3.7B | $4.2B | $4.2B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ORCL stock.
Oracle Corporation's current P/E ratio is 25.6x. The historical average is 25.6x. This places it at the 60th percentile of its historical range.
Oracle Corporation's current EV/EBITDA is 19.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.5x.
Oracle Corporation's return on equity (ROE) is 53.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 45.2%.
Based on historical data, Oracle Corporation is trading at a P/E of 25.6x. This is at the 60th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Oracle Corporation's current dividend yield is 1.33% with a payout ratio of 33.9%.
Oracle Corporation has 65.2% gross margin and 30.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Oracle Corporation's Debt/EBITDA ratio is 5.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Negative FCF from massive Capex
Metrics are mathematically derived from official filings.
Premium Valuation vs. Heavy Investment Cycle
Oracle's forward P/E of 18.58 implies significant earnings growth, yet its PEG of 5.07 suggests the market is pricing in more than what the current earnings trajectory may support, according to current valuation multiples.
The forward EV/EBITDA of 13.10 is materially lower than its trailing figure of 19.38, indicating analysts expect a sharp EBITDA expansion that justifies the premium over peers like SAP and IBM. However, the high PEG ratio casts doubt on whether the expected growth is sufficiently captured, suggesting the stock's valuation may be vulnerable if the cloud transition's profitability gains disappoint relative to the massive capital expenditure currently underway.
Eroding Core Margins Amid Expansion
Oracle's gross margin has contracted 12.5 percentage points over ten quarters to 60.0% in 2027Q1, a significant deterioration that is not yet fully reflected in operating margins, based on reported financial statements.
While operating margins have held relatively steady, the persistent decline in gross margin suggests the cloud transition is fundamentally changing Oracle's cost structure, likely due to higher infrastructure and hosting costs associated with IaaS versus traditional license revenue. This margin compression is a key risk; if it continues without a corresponding scale benefit in operating expenses, it could permanently cap the company's net profitability and undermine the investment thesis for its growth phase.
Depressed Returns on Expanding Capital Base
Return on Invested Capital (ROIC) has declined from 4.0% in 2024Q4 to 2.8% in 2027Q1, a trend that raises questions about the efficiency of Oracle's massive recent capital investments in cloud infrastructure.
This downward trend in ROIC is particularly concerning when viewed alongside the explosive growth in the asset base, indicating that the capital being deployed is not yet generating proportionate operating profits. The low ROIC, compared to peers like Microsoft (23.9%) and Intuit (16.5%), suggests Oracle may be in a value-destructive investment phase where returns on new capital are temporarily below the cost of capital, warranting investor scrutiny of the long-term payoff from the current capex surge.
Prolonged Payables Timing Boosts Liquidity
Days Payable Outstanding (DPO) has expanded dramatically from 47 days in 2024Q4 to 131 days in 2027Q1, a strategic extension of supplier payment terms that appears to be a key lever for managing cash flow during a period of negative free cash flow.
This significant increase in DPO suggests Oracle is leveraging its scale to hold onto cash longer, effectively using its suppliers to finance part of its operations and capital expenditure. While this extends the cash conversion cycle and improves short-term liquidity, it is not a sustainable source of operational efficiency; if suppliers tighten terms or if the trend reverses, it could create a substantial cash flow headwind, especially given the company's current negative FCF profile.
Current Ratio Recovery from Critical Lows
The current ratio has recovered to a healthier 1.17 in 2027Q1 from a trough of 0.62 in 2026Q1, indicating the company has successfully moved away from a position of acute short-term liquidity stress, based on the quarterly data.
The improvement in the current ratio, alongside a stable quick ratio, provides necessary buffer for Oracle's aggressive investment cycle. However, this ratio is heavily influenced by swings in current liabilities and does not fully capture the underlying cash burn; the negative free cash flow means the company remains reliant on external financing or working capital management to fund operations and capex, leaving its liquidity position dependent on continued access to capital markets.
The Misleading Pull of Current Ratio
The most commonly misapplied ratio here is likely the current ratio, which appears to signal adequate liquidity but obscures the fundamental reality of a cash-burning business model dependent on external funding for its massive growth investments.
For a company like Oracle in a heavy investment phase, the current ratio can be misleadingly benign because it includes inventory and receivables that are not readily convertible to cash to cover immediate obligations. The more critical metrics are the negative free cash flow margin (-27.9% in 2027Q1) and the D/E ratio (2.32), which better capture the strain of funding a strategic transformation through debt while core operations consume, rather than generate, cash.