Oracle Corporation

Methodology

Oracle's database and cloud infrastructure businesses generate highly predictable subscription revenue with exceptional earnings visibility from enterprise customer lock-in. Cloud growth and database maintenance contracts provide clear revenue trajectories. The calculation works well for this enterprise software leader with strong recurring revenue characteristics and customer switching costs.

Methodology

Oracle typically trades at moderate PEG ratios reflecting the mature database market offset by cloud infrastructure growth and application expansion. While growth lags pure-play cloud competitors, profitability and cash generation justify steady valuations. Compare to Oracle's historical range and consider cloud bookings momentum rather than just current growth rates.

Methodology

Oracle offers a meaningful dividend with aggressive share buybacks as management returns substantial cash from database and cloud operations. Buyback activity significantly supplements the moderate dividend yield. For this cash-generative enterprise software giant, total capital returns through dividends and repurchases matter more than yield alone.