EV/EBITDA

ORCL’s current EV/EBITDA of 16.6x means the company’s enterprise value (market cap plus debt minus cash) is 16.6 times its earnings before interest, taxes, depreciation, and amortization — a common valuation gauge that compares a firm’s total worth to its operating profitability.

This ratio sits well below the TECHNOLOGY sector median of 34.6x, placing ORCL in the 14th percentile among peers, indicating it is valued lower than most companies in its industry. The metric has been decreasing over the last eight quarters, with a year-over-year decline of -12.9% and a quarter-over-quarter decline of -2.8%. A low EV/EBITDA combined with a sustained downward trend can suggest the market is pricing in weaker future earnings or a narrowing of the company’s valuation premium, which carries moderate risk of continued compression but also a potential entry point if fundamentals hold. This combination neither strongly supports nor contradicts the overall NEUTRAL verdict; the low relative valuation is a positive factor, but the decreasing trend tempers any bullish case, aligning with a balanced stance.

Frequently Asked Questions

Closest Sector Peers