Has ORCL been undervalued by the market？

The deep research logic is organized as follows: 

Okay, let's tackle the question: Has ORCL been undervalued by the market? The user is a tech enthusiast interested in US tech stocks like Oracle, so I need to provide a detailed analysis based on the provided references and background.

First, I'll check the financial metrics from the references. Reference 1 gives ORCL's P/E, P/S, and P/B ratios as of 2025-08-20. The P/E (TTM) is 52.67, which is quite high. The P/S is 11.48, and P/B is 26.72. These ratios are all above average for the sector, suggesting the market might be pricing Oracle highly.

Next, looking at the news articles. Reference 2 mentions UBS raising the price target to $280 with a Buy rating, citing AI-driven growth and potential collaborations with OpenAI. This indicates positive sentiment from analysts. However, the revenue projection for FY29 is $134B, which is higher than current guidance but with lower operating margins. That could mean the market is expecting high growth but maybe not the margins, which might affect valuation.

Reference 3 talks about Oracle hitting 52-week highs and having a 100% Buy opinion from Barchart. The stock has a 100% gain over the past year, which is impressive. However, Morningstar thinks it's overvalued by 24% with a fair value of $205. This is a conflicting view—some say it's undervalued, others overvalued.

Reference 7 discusses the P/E ratio of 36.7x, which is above the historical average and sector average. The article questions whether the stock is overvalued given the competition from AWS, Azure, etc. But Oracle's cloud growth is strong, with 52% YoY growth in Q4 FY25. The article also mentions the Stargate AI initiative, which could drive future growth.

Reference 9 highlights Oracle's ambitious growth targets, including $67B revenue in FY26 and a $138B backlog. The company is investing heavily in cloud infrastructure, which could justify a higher valuation if the growth materializes. However, the PEG ratio mentioned in Reference 8 is 2.93, which is higher than the industry average, suggesting the market expects high earnings growth.

Putting this together, Oracle's valuation metrics are high, but the company has strong growth prospects in AI and cloud infrastructure. The market seems to be pricing in future growth, but there's a risk if the growth doesn't meet expectations. The analyst sentiment is mixed—some see it as undervalued due to growth potential, others as overvalued given the high multiples. The user's interest in tech and long-term horizon might align with Oracle's potential, but the high valuation could be a concern.

I need to structure the answer with a conclusion first, then detailed analysis using the references. Make sure to include the financial metrics, analyst opinions, growth projections, and competitive landscape. Also, use the visualization for the P/E, P/S, P/B ratios as per the user's instructions.

### Conclusion 🎯
**Oracle (ORCL) appears to be trading at a premium valuation relative to its historical averages and sector peers, but its strategic positioning in AI and cloud infrastructure could justify the premium.** The stock’s high P/E, P/S, and P/B ratios reflect market optimism about its growth prospects, particularly in AI-driven infrastructure and cloud services. However, the company faces execution risks, including delays in launching critical AI infrastructure projects and intense competition from hyperscalers like AWS and Azure. For long-term tech investors with a high-risk tolerance, ORCL could represent a speculative opportunity, but caution is warranted given its elevated multiples.

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### Detailed Analysis 📊

#### 1. **Valuation Metrics vs. Market Expectations**
Oracle’s current valuation metrics (as of 2025-08-20) are significantly above historical and industry averages:
| Metric | ORCL (2025-08-20) | Historical Avg (10Y) | Sector Avg (2025) |
|------------------|--------------------|------------------------|--------------------|
| P/E (TTM) | 52.67 | 26.8 | 35.32 |
| P/S (TTM) | 11.48 | N/A | 2.85 |
| P/B Ratio | 26.72 | 3.5 | 4.2 |
| PEG Ratio | 2.93 | N/A | 2.15 |

|code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code|
|---|---|---|---|---|---|---|---|
|ORCL|ORCL.N|Oracle|20240820|36.642116|7.241801253752762|44.06399772518382|169|
|ORCL|ORCL.N|Oracle|20240821|36.913305|7.295397972092672|44.39011626838234|169|
|ORCL|ORCL.N|Oracle|20240822|36.35513|7.185082396480429|43.718881985294125|169|
|ORCL|ORCL.N|Oracle|20240823|36.647382|7.242841966730236|44.07033012408088|169|
|ORCL|ORCL.N|Oracle|20240826|36.571028|7.227751628556863|43.97851034007353|169|
|ORCL|ORCL.N|Oracle|20240827|36.460446|7.205896656029909|43.84552996323529|169|
|ORCL|ORCL.N|Oracle|20240828|36.302472|7.174675266705689|43.65555799632353|169|
|ORCL|ORCL.N|Oracle|20240829|36.707939|7.254810165971186|44.14315271139705|169|
|ORCL|ORCL.N|Oracle|20240830|37.200292|7.352116829365005|44.73523200827206|169|
|ORCL|ORCL.N|Oracle|20240903|36.729002|7.26223979860224|44.1684823069853|169|

**Key Observations**:
- **P/E Ratio**: ORCL’s 52.67x P/E is nearly double its historical average and 17% above the sector average. This reflects high expectations for future earnings growth, driven by AI and cloud initiatives .
- **P/S Ratio**: At 11.48x, ORCL’s P/S is ~4x higher than the sector average, indicating a premium valuation for its revenue streams .
- **P/B Ratio**: The 26.72x P/B ratio suggests the market values ORCL’s intangible assets (e.g., AI partnerships, cloud infrastructure) highly, despite concerns about capital-intensive projects .

#### 2. **Growth Catalysts: AI & Cloud Infrastructure**
Oracle’s recent partnerships and product launches highlight its strategic focus on AI-driven growth:
- **OpenAI Collaboration**: ORCL has integrated OpenAI’s GPT-5 across its database and cloud applications, enabling advanced AI capabilities for enterprise workflows .
- **Google Cloud Partnership**: Expanded collaboration to offer Gemini AI models via Oracle Cloud Infrastructure (OCI), enhancing AI-driven productivity tools .
- **Stargate Initiative**: Potential collaboration with OpenAI on AI inference and training services, contingent on OCI infrastructure launches .

**Growth Projections**:
- UBS projects ORCL’s revenue to reach $134B by FY29, with 38% operating margins .
- ORCL’s cloud infrastructure revenue surged 52% YoY in Q4 FY25, with plans to boost capex to $54B for AI infrastructure .

#### 3. **Risks & Challenges**
- **Execution Risks**: Delays in launching OCI infrastructure (e.g., Abilene and Stargate) could delay AI partnerships and revenue growth .
- **Competition**: ORCL’s cloud market share (~3-4%) lags behind AWS (30%) and Azure (20%), raising concerns about profitability .
- **Valuation Sensitivity**: A 35x P/E premium vs. peers (e.g., Microsoft: 30x, Amazon: 32x) leaves little margin for error in meeting growth targets .

#### 4. **Analyst Sentiment & Market Reaction**
- **Bullish Case**: 100% “Buy” rating from Barchart, with price targets averaging $280-$304 .
- **Bearish Case**: Morningstar flags ORCL as overvalued by 24%, with a fair value of $205 .
- **Market Performance**: ORCL has gained 100% YoY, hitting 52-week highs ($260.87), but recent volatility reflects mixed sentiment .

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### Final Takeaway 🚨
Oracle’s premium valuation reflects its leadership in enterprise AI and cloud infrastructure, but investors must weigh these growth prospects against execution risks and competition. For tech enthusiasts with a long-term horizon, ORCL could be a speculative play on the AI revolution, but a high P/E and P/B ratio warrant caution.