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    Oracle (ORCL), Why Is So Much Attention Building Around It?

    Simply Wall St·10/22/2026 01:39:22
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    Oracle (ORCL) has been busy. A fresh wave of AI focused partnerships, healthcare deals, and new agentic applications is reshaping how investors think about the stock’s mix of risk and opportunity.

    Despite this stream of AI and healthcare deals, Oracle’s recent trading tells a different short-term story. The share price is down about 13% over the past month and year to date is down roughly 34%, while the 90-day share price return of about 8% and a 3-year total shareholder return of roughly 32% point to longer term momentum that has not fully broken.

    Scan how Oracle’s AI push compares with peers by tracking the hand picked 55 AI infrastructure stocks that powers the same enterprise and data center buildout story.

    Bulls see Oracle’s AI backlog and healthcare traction as underpriced, while bears focus on leverage, credit risk, and a 52% one year share price decline. Which story do the current valuation markers point toward?

    Most Popular Narrative: 33% Undervalued

    On the most followed narrative, Oracle screens as undervalued, with a fair value of $192.59 against a last close of $129.13. This highlights a sharp discount before you even look at the growth math behind it.

    To calculate the intrinsic value of the company I''ll use multiple methods.

    • Discounted Cash Flows (DCF): Intrinsic value is estimated by projecting its free cash flows over the next 10 years and discounting them to present value using the estimated cost of capital;

    • EPS Growth: The fair value is estimated by projecting the Earnings Per Share CAGR for the next 5 Years and then, given its current and historic values of PE, coming up with a PE for the 5th Year. This will give us its price 5 Years from now using the formula Price = EPS x PE, which is then discounted using the estimated cost of capital;

    • Historical P/S: We assume mean reversion to the historical P/S values;

    • Historical EV/EBITDA: We assume mean reversion to the historical EV/EBITDA values;

    • Historical P/E: We assume mean reversion to the historical P/E values.

    See why 99 investors see Oracle as 33% undervalued.

    Result: Fair Value of $192.59 (UNDERVALUED)

    Still, the 52% one year total return decline and Oracle’s high uncertainty rating from Morningstar could quickly flip sentiment if AI or healthcare demand disappoints.

    Find out about the key risks to this Oracle narrative.

    Next Steps

    If this mix of AI optimism and healthcare uncertainty feels conflicted, treat it as a prompt to review the data yourself and move quickly while sentiment is split. To see both sides laid out clearly, go through the 4 key rewards and 3 important warning signs.

    Looking for more investment ideas beyond Oracle?

    You have the Oracle story. Now widen the lens and pressure test your portfolio ideas with fresh filters that spotlight different types of opportunities investors often overlook.