• 简

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Is Oracle (ORCL) A Bargain On Its Kahuna Workforce Software Tie Up?

    Simply Wall St·09/09/2026 12:27:27
    语音播报

    Kahuna Workforce Solutions has just linked its skills management software directly into Oracle (ORCL) Cloud Human Capital Management, giving large employers a single view of workforce capabilities across healthcare, manufacturing, and energy operations.

    For investors, the Kahuna partnership comes at an active moment for Oracle, with the share price at US$162.52 after a 2.36% 1-day share price return and a sharp 15.00% 7-day share price return, even though the year-to-date share price return is down 16.96% and the 1-year total shareholder return is down 31.94%. This leaves short-term momentum building again against a weaker recent record, alongside a much stronger 3-year and 5-year total shareholder return of 53.60% and 101.24% respectively.

    Capitalize on Oracle’s momentum in AI infrastructure by scanning a curated set of 55 AI infrastructure stocks that are also building the data centers and tooling behind these kinds of skills-first platforms.

    Bulls see Oracle’s skills and AI push as proof the business is underpriced. Bears point to heavy spend, credit downgrades and prior share price losses. Which story does the valuation currently lean toward?

    Most Popular Narrative: 15.6% Undervalued

    Oracle’s most followed narrative pegs fair value at $192.59, above the recent $162.52 close, which puts the current AI and cloud enthusiasm into sharper context.

    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 that we then discount 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.

    Read the complete narrative.

    The narrative, according to andre_santos, leans heavily on strong projected earnings expansion, generous revenue assumptions and a blended mix of cash flow and multiple reversion models. Want to see how aggressive those growth and margin paths are, and how they stack across DCF, EPS and historical ratios without guessing the inputs yourself.

    Result: Fair Value of $192.59 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    Still, that 12.00% estimated cost of capital sitting above historic 9.00% ROIC, along with a very high uncertainty rating, could easily pressure the Oracle narrative.

    Find out about the key risks to this Oracle narrative.

    Next Steps

    If this mix of optimism and concern around Oracle feels familiar, move quickly from headlines to hard numbers and weigh both sides of the story using the 4 key rewards and 2 important warning signs.

    Looking for more investment ideas beyond Oracle?

    Do not stop with one opportunity. The right watchlist often starts with a few clear themes that match your risk appetite, income needs, and time horizon.

    • Target potential mispricing by scanning a curated set of 49 high quality undervalued stocks that combine quality fundamentals with room for sentiment to catch up.
    • Lock in income-focused ideas by checking out a selection of 6 dividend fortresses designed for investors who want yield to do more of the heavy lifting.
    • Protect your downside first by filtering companies through a 82 resilient stocks with low risk scores so you are not the last to react when conditions change.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.