Is Oracle Corp. overvalued or undervalued?

As of 13 June 2025, Oracle Corp. has moved from an attractive to a fair valuation grade. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 38, a Price to Book Value of 29.17, and an EV to EBITDA of 23.83. In comparison, Microsoft Corp. has a more favorable P/E ratio of 36.58 and an EV to EBITDA of 23.27, while Salesforce, Inc. is considered expensive with a P/E of 36.69.
Despite a strong recent performance, with a year-to-date return of 24.24% compared to the S&P 500's 2.44%, Oracle's elevated valuation ratios suggest that the stock may not provide sufficient upside potential at its current price of 207.04. Given these considerations, Oracle Corp. is likely overvalued relative to its peers and industry standards.