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ORCL (Oracle) PS Ratio : 8.83 (As of Oct. 31, 2024)


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What is Oracle PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Oracle's share price is $167.84. Oracle's Revenue per Share for the trailing twelve months (TTM) ended in Aug. 2024 was $19.02. Hence, Oracle's PS Ratio for today is 8.83.

Warning Sign:

Oracle Corp stock PS Ratio (=9.18) is close to 10-year high of 9.24

The historical rank and industry rank for Oracle's PS Ratio or its related term are showing as below:

ORCL' s PS Ratio Range Over the Past 10 Years
Min: 3.78   Med: 5.1   Max: 9.24
Current: 8.83

During the past 13 years, Oracle's highest PS Ratio was 9.24. The lowest was 3.78. And the median was 5.10.

ORCL's PS Ratio is ranked worse than
85.87% of 2732 companies
in the Software industry
Industry Median: 2.25 vs ORCL: 8.83

Oracle's Revenue per Sharefor the three months ended in Aug. 2024 was $4.67. Its Revenue per Share for the trailing twelve months (TTM) ended in Aug. 2024 was $19.02.

Warning Sign:

Oracle Corp revenue growth has slowed down over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of Oracle was 3.90% per year. During the past 3 years, the average Revenue per Share Growth Rate was 11.90% per year. During the past 5 years, the average Revenue per Share Growth Rate was 12.90% per year. During the past 10 years, the average Revenue per Share Growth Rate was 9.40% per year.

During the past 13 years, Oracle's highest 3-Year average Revenue per Share Growth Rate was 122.40% per year. The lowest was 0.70% per year. And the median was 15.70% per year.

Back to Basics: PS Ratio


Oracle PS Ratio Historical Data

The historical data trend for Oracle's PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Oracle PS Ratio Chart

Oracle Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.53 5.88 4.72 5.87 6.25

Oracle Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.58 6.31 5.98 6.25 7.43

Competitive Comparison of Oracle's PS Ratio

For the Software - Infrastructure subindustry, Oracle's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Oracle's PS Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Oracle's PS Ratio distribution charts can be found below:

* The bar in red indicates where Oracle's PS Ratio falls into.



Oracle PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Oracle's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=167.84/19.017
=8.83

Oracle's Share Price of today is $167.84.
Oracle's Revenue per Share for the trailing twelve months (TTM) ended in Aug. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $19.02.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Oracle  (NYSE:ORCL) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Oracle PS Ratio Related Terms

Thank you for viewing the detailed overview of Oracle's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Oracle Business Description

Address
2300 Oracle Way, Austin, TX, USA, 78741
Oracle provides database technology and enterprise resource planning, or ERP, software to enterprises around the world. Founded in 1977, Oracle pioneered the first commercial SQL-based relational database management system. Today, Oracle has 430,000 customers in 175 countries, supported by its base of 136,000 employees.
Executives
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