ORCL – Market expectations are for Uniform ROA to decline, but management is confident about their private cloud, growth, and M&A activity
- Oracle Corporation (ORCL) currently trades below corporate but above historical averages relative to Uniform earnings, with a 19.3x Uniform P/E (Fwd. V/E’).
- At these levels, markets are pricing in expectations for Uniform ROA to decline to 26% by 2026, accompanied by 3% Uniform asset growth.
- Meanwhile, analysts also expect Uniform ROA to compress to 30% in 2023, albeit with stronger 9% Uniform asset growth.
- If sustained going forward, these levels would imply a stock price closer to $124, representing significant potential equity upside for the firm.
- Moreover, the firm’s most recent earnings call suggests management is confident about their private cloud, growth, and M&A activity.