Is Oracle Corp. overvalued or undervalued?

As of 17 October 2025, Oracle Corp. has moved from a very expensive 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 Price to Book Value of 29.17. In comparison, 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 may not be as competitively priced as some peers.
Despite the recent valuation adjustment, Oracle's stock has outperformed the S&P 500 year-to-date with a return of 74.81% compared to the index's 13.30%. This strong performance over multiple periods, including a 3-year return of 334.66% versus the S&P 500's 81.19%, suggests that while the stock is fairly valued, it has been a strong performer in the market.