Using the industry peer median P/E multiple (trailing + forward), Oracle Corporation (ORCL) has a fair value of $181.25 based on 3 comparable companies in the Software - Infrastructure industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Oracle CorporationORCL | 410,784 | 33.0x | 19.2x |
| Adobe Inc.ADBE | 98,604 | 14.4x | 10.2x |
| Synopsys, Inc.SNPS | 77,468 | 50.3x | 31.5x |
| Fortinet, Inc.FTNT | 59,767 | 33.1x | 27.0x |
| Industry Median | 33.1x | 27.0x | |
| (*) Profit after tax | 12,443 | 21,432 | |
| Equity Value | 411,541 | 627,376 | |
| (/) Outstanding shares | 2,866 | 2,866 | |
| Fair Price | $144 | $219 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.