Oracle Corporation is best known for its suite of enterprise software, including its database management systems. Oracle provides businesses with cloud solutions, hardware, and software applications.
According to Oracle's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 27.8451. At the end of 2024 the company had a P/E ratio of 39.4.
The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future. Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.