Is Oracle Corp. overvalued or undervalued?

As of 10 October 2025, Oracle Corp. has moved from fair to expensive in its valuation grade. The company is currently overvalued, as indicated by its P/E ratio of 38, a Price to Book Value of 29.17, and an EV to EBITDA of 23.83. In comparison to 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, highlighting Oracle's relatively high valuation metrics.
Despite its strong performance, with a year-to-date return of 75.80% compared to the S&P 500's 11.41%, the elevated valuation ratios suggest that Oracle may be priced for perfection, making it less appealing for new investors.