If you’re eyeing Oracle Corporation Japan’s stock and weighing your next move, you’re definitely not alone. In fact, with a year-to-date return of 11.0% and an impressive 22.1% boost over the past year, it’s clear the stock has been on the radar of growth-oriented investors lately. This interest isn’t just a flash in the pan either. With a stunning 125.9% return over the last three years, Oracle Corporation Japan has rewarded those with patience and conviction in the story.
Recently, the stock’s 7-day performance rocketed by 10.4%, well above the broader index, further fueling the buzz. While some of this momentum can be traced to larger market optimism and sector moves in Japan’s technology stocks, it’s also a sign that risk perception around the company may be shifting among investors. The market is clearly reassessing what this business could be worth in the current tech landscape, and sentiment has been building on the back of robust long-term results. Yet, when we look at valuation through several typical frameworks, the picture gets a little more complicated. Oracle Corporation Japan currently scores a 0 out of 6 on our undervaluation checklist, meaning it may not be offering classic “value” opportunities at today’s share price.
So, what do all these numbers and trends mean when it comes to figuring out whether the stock is attractively valued or not? Let’s dig into the key valuation methods investors use. Stick around, because there’s an even deeper way to think about a company’s worth that we’ll reveal at the end.
Oracle Corporation Japan scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
The Discounted Cash Flow (DCF) model estimates a company’s worth by projecting its future free cash flows and discounting them back to today’s value. For Oracle Corporation Japan, this approach provides a lens into the company’s long-term potential using both analyst forecasts and extrapolated estimates.
At present, Oracle Corporation Japan’s Free Cash Flow stands at ¥65.4 billion. Analyst estimates project incremental growth for the next five years, followed by gradual extrapolation, culminating in an expected Free Cash Flow of ¥65.1 billion by 2035. The model used here combines analyst projections up to 2030 and then relies on trend-based estimates for subsequent years.
According to the DCF model, the intrinsic value per share comes out to ¥8,180. However, the current share price is well above this value. The DCF result implies the stock is trading at a 101.5% premium to its fair value. In plain terms, the Discounted Cash Flow suggests Oracle Corporation Japan’s shares are meaningfully overvalued right now based on projected cash generation.
Story Continues
Result: OVERVALUED
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Oracle Corporation Japan.
4716 Discounted Cash Flow as at Sep 2025
Our Discounted Cash Flow (DCF) analysis suggests Oracle Corporation Japan may be overvalued by 101.5%. Find undervalued stocks or create your own screener to find better value opportunities.
The price-to-earnings (PE) ratio is a widely used and reliable measure when valuing profitable companies, as it directly relates the price investors pay to the earnings that the business generates. For companies like Oracle Corporation Japan, with stable profits and a track record of earnings growth, PE is considered a suitable gauge for whether the stock is trading at a reasonable price.
However, what qualifies as a “fair” PE ratio is not one size fits all. Typically, higher growth prospects can justify a higher PE multiple, while companies facing greater risks or slowing growth trends will attract lower ones. It is essential to compare a company’s PE to several benchmarks for context. Oracle Corporation Japan is currently trading at a PE of 34.8x. For comparison, the average PE across the software industry is 21.3x, and its peers are averaging 27.1x. This puts Oracle Corporation Japan’s PE well above both the sector and peers.
This is where the Simply Wall St “Fair Ratio” model comes into play. Rather than just compare a company to broad industry averages or its nearest competitors, the Fair Ratio is designed to capture the unique qualities of Oracle Corporation Japan, factoring in growth potential, profit margins, market size, and risk profile. In this case, the Fair Ratio for the company is 28.7x, which suggests that a slightly lower multiple than today’s trading level would be justified given these inputs.
Since there is a notable gap between Oracle Corporation Japan’s actual PE (34.8x) and the Fair Ratio (28.7x), the shares come across as somewhat overvalued on this basis.
Result: OVERVALUED
TSE:4716 PE Ratio as at Sep 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.
Earlier, we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. A Narrative, in investing, is simply the story you believe about a company: why it will succeed, how its industry might change, and what that means for future revenue, profits, and fair value. On Simply Wall St, Narratives help you turn your perspective about Oracle Corporation Japan into a clear set of forecasts, linking the company’s unique story directly to financial predictions and an estimated fair value.
Unlike static models, Narratives are dynamic. They update automatically whenever new company news, earnings or market data become available. Narratives are easy to create and access within the Simply Wall St Community, used by millions of investors to share different views. By comparing your Narrative’s fair value estimate with today’s share price, you gain a transparent rationale for deciding to buy, sell or simply watch.
For instance, some investors following Oracle Corporation Japan are optimistic, highlighting its robust cloud partnerships and potential for double-digit earnings growth. These investors may see fair value as high as ¥17,620 per share. Others, taking a more cautious view, may point to industry risks or slower adoption, resulting in much lower valuations. With Narratives, both views are just a click away, so you can choose which story best matches your beliefs.
Do you think there’s more to the story for Oracle Corporation Japan? Create your own Narrative to let the Community know!
TSE:4716 Earnings & Revenue History as at Sep 2025
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.
Companies discussed in this article include 4716.
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