Discounted Cash Flow (DCF) Analysis Unlevered

Oracle Corporation (ORCL)

Technology

Operating Data

Year A/P	2013 Actual	2014 Actual	2015 Actual	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Projected	2021 Projected	2022 Projected	2023 Projected
Revenue	37,180.00	38,276.81	38,227.05	37,049.66	37,794.36	39,385.50	39,507.59	39,918.47	40,333.62	40,753.09	41,176.93
Revenue (%)
EBITDA	17,627.04	17,526.95	16,839.02	15,416.36	15,930.32	17,235.09	17,268.77	17,592.07	17,775.03	17,959.89	18,146.67
EBITDA (%)
EBIT	14,697.25	14,617.91	13,979.63	12,908.10	13,477.47	14,450.54	14,349.16	14,701.97	14,854.87	15,009.36	15,165.46
EBIT (%)
Depreciation	2,929.78	2,909.04	2,859.38	2,508.26	2,452.85	2,784.55	2,919.61	2,890.10	2,920.15	2,950.52	2,981.21
Depreciation (%)

Balance Sheet Data

Year A/P	2013 Actual	2014 Actual	2015 Actual	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Projected	2021 Projected	2022 Projected	2023 Projected
Total Cash	32,216.47	38,820.34	54,366.51	56,126.53	66,079.65	67,262.55	37,828.52	52,644.48	53,191.98	53,745.18	54,304.13
Total Cash (%)
Account Receivables	6,049.19	6,086.01	5,619.38	5,383.32	5,298.77	5,135.87	5,132.04	5,784.19	5,844.34	5,905.12	5,966.54
Account Receivables (%)
Inventories	241.67	187.56	313.46	211.18	-	-	-	251.49	254.10	256.74	259.41
Inventories (%)
Accounts Payable	420.13	470.80	806.59	503.88	597.15	527.77	580.76	582.81	588.87	595.00	601.18
Accounts Payable (%)
Capital Expenditure	-650.65	-581.81	-1,391.46	-1,189.29	-2,022.00	-1,736.90	-1,659.32	-1,373.20	-1,387.48	-1,401.91	-1,416.49
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 53.92
Diluted Shares Outstanding	3,732.00
Cost of Debt
Tax Rate	9.66
After-tax Cost of Debt	-0.43
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.10
Total Debt	51,673.00
Total Equity	201,229.44
Total Capital	252,902.44
Debt Weighting	20.43
Equity Weighting	79.57
Wacc

Build Up Free Cash

Year A/P	2013 Actual	2014 Actual	2015 Actual	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Projected	2021 Projected	2022 Projected	2023 Projected
Revenue	37,180.00	38,276.81	38,227.05	37,049.66	37,794.36	39,385.50	39,507.59	39,918.47	40,333.62	40,753.09	41,176.93
EBITDA	17,627.04	17,526.95	16,839.02	15,416.36	15,930.32	17,235.09	17,268.77	17,592.07	17,775.03	17,959.89	18,146.67
EBIT	14,697.25	14,617.91	13,979.63	12,908.10	13,477.47	14,450.54	14,349.16	14,701.97	14,854.87	15,009.36	15,165.46
Tax Rate	21.39%	20.06%	22.57%	22.21%	19.08%	71.13%	9.66%	26.58%	26.58%	26.58%	26.58%
EBIAT	11,553.28	11,685.58	10,825.12	10,041.51	10,906.59	4,172.09	12,963.13	10,793.62	10,905.87	11,019.29	11,133.89
Depreciation	2,929.78	2,909.04	2,859.38	2,508.26	2,452.85	2,784.55	2,919.61	2,890.10	2,920.15	2,950.52	2,981.21
Accounts Receivable	-	-36.83	466.64	236.06	84.55	162.90	3.83	-652.15	-60.16	-60.78	-61.41
Inventories	-	54.11	-125.91	102.28	211.18	-	-	-	-2.62	-2.64	-2.67
Accounts Payable	-	50.67	335.79	-302.72	93.28	-69.39	53.00	2.05	6.06	6.12	6.19
Capital Expenditure	-	-68.84	809.66	-202.17	832.70	-285.10	-77.58	-286.12	14.28	14.43	14.58
UFCF	14,483.07	14,593.74	15,170.68	12,383.23	14,581.16	6,765.06	15,861.99	12,747.49	13,783.60	13,926.95	14,071.79
WACC
PV UFCF								10,583.17	10,426.75	9,599.26	8,837.44
SUM PV UFCF											89,195.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.75
Free cash flow (t + 1)	14,634.66
Terminal Value	254,515.79
Present Value of Terminal Value	159,842.43

Intrinsic Value

Enterprise Value	249,037.64
Net Debt	13,844.48
Equity Value	235,193.16
Shares Outstanding	3,732.00
Equity Value Per Share	63.02

Results Unlevered DCF

Wacc / Long-term Growth	-4 (%)	-3 (%)	-2 (%)	-1 (%)	0 (%)	1 (%)	2 (%)	3 (%)	4 (%)
11.75 (%)	41.40 Sell	43.62 Sell	46.28 Sell	49.56 Sell	53.69 Sell	59.04 Buy	66.24 Buy	76.48 Buy	92.19 Buy
11.25 (%)	40.07 Sell	42.06 Sell	44.44 Sell	47.34 Sell	50.94 Sell	55.53 Buy	61.59 Buy	69.96 Buy	82.26 Buy
10.75 (%)	38.86 Sell	40.65 Sell	42.79 Sell	45.36 Sell	48.52 Sell	52.50 Sell	57.65 Buy	64.60 Buy	74.47 Buy
10.25 (%)	37.74 Sell	39.37 Sell	41.29 Sell	43.59 Sell	46.38 Sell	49.85 Sell	54.28 Buy	60.12 Buy	68.18 Buy
9.75 (%)	36.72 Sell	38.21 Sell	39.94 Sell	42.00 Sell	44.48 Sell	47.52 Sell	51.36 Sell	56.32 Buy	63.02 Buy
9.25 (%)	35.78 Sell	37.14 Sell	38.71 Sell	40.56 Sell	42.77 Sell	45.47 Sell	48.81 Sell	53.08 Sell	58.71 Buy
8.75 (%)	34.92 Sell	36.16 Sell	37.58 Sell	39.26 Sell	41.24 Sell	43.63 Sell	46.57 Sell	50.27 Sell	55.06 Buy
8.25 (%)	34.12 Sell	35.25 Sell	36.56 Sell	38.07 Sell	39.86 Sell	41.99 Sell	44.59 Sell	47.81 Sell	51.93 Sell
7.75 (%)	33.38 Sell	34.42 Sell	35.61 Sell	36.99 Sell	38.60 Sell	40.52 Sell	42.82 Sell	45.66 Sell	49.22 Sell

Financial Modeling Prep is a new concept that informs you about stock markets information (news, currencies and stock prices). We always strive to give you the best and most updated information. We also gives you free financial modeling methodology through our academy. Most investment banking firms follow our guidelines to get discounted cash flow statement of companies to see if they are undervalued, overvalued or simply at par value. You can find all financial models and valuation techniques that is used in corporate finance to get companies intrinsic valuation. Most private equity firm use financial modeling for decision making when it comes to hold, buy or sell a particular stock.

You can support our API by donating via Paypal !