PEG Ratio

The PEG ratio measures a stock’s price-to-earnings (P/E) multiple relative to its expected earnings growth rate; a value of 1.0x suggests the stock is fairly valued, so ORCL’s current 0.96x indicates it is slightly undervalued relative to its growth prospects.

Compared to sector peers, ORCL’s PEG ratio of 0.96x sits well below the TECHNOLOGY sector median of 1.91x and places the stock at the 0th percentile, meaning it is the most undervalued in the peer group on this metric. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 22.0%, from 1.23x to 0.96x, reflecting a rapid compression in valuation relative to growth. A low PEG ratio combined with a sharp quarterly drop can signal either a falling stock price or downward revisions to growth expectations—both introduce risk that the apparent undervaluation may persist or deepen. However, the absolute level remains attractive on a relative basis, offering a potential opportunity if growth estimates hold. This low PEG ratio and favorable sector comparison support the overall NEUTRAL verdict by highlighting a compelling valuation that is tempered by deteriorating trend, keeping the outlook balanced.

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