Oracle (ORCL) Is Undervalued

William Blair maintained its Outperform rating for Oracle Corporation (NASDAQ: ORCL) as its F2Q results were higher than management guidance. William Blair believes that Oracle’s broad technology footprint is its competitive advantage.He has noted that the portfolio is set to become even broader with acquisition of Sun Microsystems, Inc. (NASDAQ: JAVA).

William Blair finds Oracle to be inexpensively priced at a P/E multiple of 15.7x and an EV/FCF multiple of 13.5x, which is below the peer group median of 17.1x and 14.0x respectively.