Is Oracle Corp. overvalued or undervalued?

As of 9 September 2025, Oracle Corp. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 38, an EV to EBITDA of 23.83, and a PEG ratio of 4.05, which suggest that while the stock has strong growth potential, it is priced at a premium compared to its earnings growth.
In comparison to its peers, Microsoft Corp. has a more attractive P/E ratio of 36.17, while Salesforce, Inc. shows a lower EV to EBITDA of 16.87, indicating that Oracle is relatively more expensive in terms of earnings and operational performance. Despite these valuation metrics, Oracle's stock has significantly outperformed the S&P 500 over multiple periods, with a year-to-date return of 78.00% compared to the S&P 500's 12.22%, reinforcing the notion that the market may be pricing in strong future growth.