Oracle Corp‘s CAPE ratio

The CAPE (Cyclically Adjusted Price-to-Earnings) ratio of Oracle Corporation (ORCL) is a valuation metric that compares the company’s stock price to its average inflation-adjusted earnings over the past 10 years. This ratio helps investors assess whether the stock is overvalued or undervalued based on long-term earnings trends. A high CAPE ratio could suggest overvaluation—reflecting strong expectations for Oracle’s cloud and AI-driven software growth—while a low ratio might indicate undervaluation or market caution. By analyzing Oracle’s CAPE ratio, investors can make more informed decisions about its future growth prospects relative to its historical earnings performance.