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How does this work?
A valuation is an assessment of the value of one share in a company, it is not necessarily the same as the price listed in the sharemarket. You can use a variety of methods to value a company, Valuecruncher uses Discounted Cash Flow (DCF) analysis to help people create the valuations you see below.
Valuecruncher Valuation
54.03%
from latest share price
Your Valuation
| Valuation | Compared to price | Member |
 Created
|
Views |
|---|---|---|---|---|
| $25.23 |
54.03%
|
Valuecruncher | 23 Nov 2008 | 0 |
| $24.14 |
12.7%
|
TheCrunchBlog | 27 Jun 2008 | 191 |
| $24.66 |
9.36%
|
KiwiEMH | 27 Jun 2008 | 42 |
| $21.64 |
2.56%
|
GordonGekko | 09 May 2008 | 36 |
| $15.43 |
 -28.27%
|
silas | 30 Apr 2008 | 29 |
Recent Comments
| Updated: | 3 hours ago |
| Ticker: | ORCL |
| Market: | NASD |
This valuation is part of this blog post:
http://blog.valuecruncher.com/2008/06/valuing-oracle-appears-slightly-undervalued/
Oracle grew revenues from US$11.8 billion in 2005 to US$22.4 billion in 2008 – a 24% compound annual growth rate. Our assumptions of revenues for the next three years are US$25.75 billion in 2009 growing to US$31.5 billion in 2011 – a 12% compound annual growth rate. We have projected EBITDA margins to be flat at 40%. We have used a terminal growth rate of 4%. We calculated this terminal growth rate based on year three growth of 8.6% dropping to a 3% stable growth rate by year 10. We used a terminal capital expenditure number of US$600 million. We have used a WACC (discount rate) of 10.5%.
WACC at 12.5% - variability in the enterprise software market. Terminal growth at 4.5% - growth opportunities remain. Solid margins - ~50%.