ORCL - Embedded Expectations Analysis - 2021 07 21
Oracle Corporation (ORCL:USA) currently at a historical high relative to UAFRS-based (Uniform) earnings, with an 22.1x Uniform P/E. Even at these levels, the market is pricing in bearish expectations for the firm, and management may have concerns about ISV demand, OCI value, and their ERP solutions.Specifically, management may have concerns about the sustainability of demand from Independent Software Vendors (ISVs) and about the revenue mix between upgrades and new customers in their Oracle Fusion business. In addition, they may be overstating the unique value their Oracle Cloud Infrastructure (OCI) offers and the potential of their health care applications. Finally, they may be concerned about the customer migration to other Enterprise Resource Planning (ERP) businesses.
Oracle provides products and services that address enterprise information technology (IT) environments. The company's products and services include applications and infrastructure offerings. The company's cloud and license business engages in the sale, marketing and delivery of its applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings; and its cloud license and on-premise license offerings. The company's hardware business provides Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments.
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