Is Oracle Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Oracle Corp. has moved from very expensive to fair. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 38, an EV to EBITDA of 23.83, and a Price to Book Value of 29.17. In comparison, Microsoft Corp. has a P/E of 36.17, while Salesforce, Inc. shows a lower P/E of 33.28, indicating that Oracle's valuation is relatively high among its peers.
Despite recent underperformance with a 1-week return of -0.56% compared to the S&P 500's 1.70%, Oracle has demonstrated strong long-term performance, with a 5-year return of 383.18% versus the S&P 500's 91.29%. This suggests that while Oracle may be fairly valued now, its historical performance has been significantly better than the broader market.