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					Oracle Corporation
ORCL
Annual Income Statement
                                                May06           May07           May08           May09           May10

Sales                                        14,380.000 ######### ######### ######### #########
Sales Revenue Growth                                              25.15%          24.64%           3.66%          15.34%
Cost of Goods Sold                             3,012.000 3,942.000 4,713.000 4,531.000 5,466.000
COGS as % of Sales                                20.95%          21.90%          21.01%          19.49%          20.38%       20.75%
                                                          ------------------
                                             ---------------                              ------------------
                                                                          ------------------             -------------------
Gross Profit                                 11,368.000 ######### ######### ######### #########
Selling, General, & Administrative Exp.        5,604.000 6,794.000 8,228.000 8,190.000 9,245.000
SG& A as % Sales                                  38.97%          37.75%          36.68%          35.22%          34.47%
Percentage Change in SG&A                                         -3.13%          -2.83%          -3.98%          -2.14%       -3.02%
                                                          ------------------
                                          ------------------                              ------------------
                                                                          ------------------             -------------------
Operating Income Before Deprec.                5,764.000 7,260.000 9,489.000 ######### #########
Depreciation,Depletion,&Amortization             806.000 1,127.000 1,480.000 1,976.000 2,271.000
DD& A as % Sales                                                   6.26%           6.60%           8.50%           8.47%
                                                          ------------------
                                             ---------------                              ------------------
                                                                          ------------------             -------------------
Operating Profit                               4,958.000 6,133.000 8,009.000 8,555.000 9,838.000

Interest Expense                                 169.000         343.000         394.000         630.000         754.000
Other Income                                     284.000         426.000         444.000         227.000          30.000
Other Income (% Sales)                             1.97%           2.37%           1.98%           0.98%           0.11%
Special Items                                   (222.000) (159.000) (165.000) (234.000) (776.000)
                                                          ------------------
                                             ---------------                              ------------------
                                                                          ------------------             -------------------
Pretax Income                                  4,851.000 6,057.000 7,894.000 7,918.000 8,338.000
Total Income Taxes                             1,429.000 1,712.000 2,313.000 2,241.000 2,108.000
Tax Rate                                          29.46%          28.26%          29.30%          28.30%          25.28%
                                                          ------------------
                                             ---------------                              ------------------
                                                                          ------------------             -------------------
Income Before Extraordinary Items
 & Noncontrolling Interest                          @NA             @NA             @NA             @NA 6,230.000

Noncontrolling Interest - Inc Account             41.000          71.000          60.000          84.000          95.000
                                                          ------------------
                                             ---------------                              ------------------
                                                                          ------------------             -------------------
Income Before Extraordinary
Items & Discontinued Operations                3,381.000 4,274.000 5,521.000 5,593.000 6,135.000
Preferred Dividends                                 0.000           0.000           0.000           0.000           0.000
                                                          ------------------
                                             ---------------                              ------------------
                                                                          ------------------             -------------------
Available for Common                           3,381.000 4,274.000 5,521.000 5,593.000 6,135.000
Savings Due to Common Stock Equiv.                  0.000           0.000           0.000           0.000           0.000
                                                          ------------------
                                             ---------------                              ------------------
                                                                          ------------------             -------------------
Adjusted Available for Common                  3,381.000 4,274.000 5,521.000 5,593.000 6,135.000
Extraordinary Items                                 0.000           0.000           0.000           0.000           0.000
Discontinued Operations                             0.000           0.000           0.000           0.000           0.000
                                                          ------------------
                                             ---------------                              ------------------
                                                                          ------------------             -------------------
Adjusted Net Income                            3,381.000 4,274.000 5,521.000 5,593.000 6,135.000
Earnings Per Share Basic -
Excluding Extra Items & Disc Op      0.650       0.830       1.080       1.100       1.220

Earnings Per Share Basic -
Including Extra Items & Disc Op      0.650       0.830       1.080       1.100       1.220

Earnings Per Share Diluted -
Excluding Extra Items & Disc Op      0.640       0.810       1.060       1.090       1.210

Earnings Per Share Diluted -
Including Extra Items & Disc Op      0.640       0.810       1.060       1.090       1.210

EPS Basic from Operations            0.680       0.850       1.100       1.130       1.320
EPS Diluted from Operations          0.670       0.830       1.080       1.120       1.310
Dividends Per Share                  0.000       0.000       0.000       0.050       0.200

Com Shares for Basic EPS          5,196.000   5,170.000   5,133.000   5,070.000   5,014.000
Com Shares for Diluted EPS        5,287.000   5,269.000   5,229.000   5,130.000   5,073.000
Oracle Corp.
ORCL
Annual Balance Sheet
                                       May06           May07           May08           May09           May10
ASSETS
Cash & Equivalents                    7,605.000 7,020.000 ######### ######### #########
Net Receivables                       3,420.000 4,589.000 5,799.000 4,985.000 6,318.000
Inventories                                0.000           0.000           0.000           0.000        259.000
Prepaid Expenses                            @CF             @CF             @CF             @CF             @CF
Other Current Assets                    949.000 1,274.000 1,261.000                     972.000 1,958.000
                                                 ------------------
                                     --------------                              ------------------
                                                                 ------------------              ------------------
Total Current Assets                 ######### ######### ######### ######### #########

Gross Plant, Property & Equipment     3,051.000 3,459.000 3,640.000 3,826.000 4,648.000
Accumulated Depreciation              1,660.000 1,856.000 1,952.000 1,904.000 1,885.000
                                                 ------------------
                                     --------------                              ------------------
                                                                 ------------------              ------------------
Net Plant, Property & Equipment       1,391.000 1,603.000 1,688.000 1,922.000 2,763.000
 Investments at Equity                  841.000            0.000           0.000           0.000           0.000
 Other Investments                         0.000         67.000             @CF             @CF             @CF
 Intangibles                         ######### ######### ######### ######### #########
 Deferred Charges                          0.000           0.000           0.000           0.000           0.000
Other Assets                            486.000         576.000 1,091.000               802.000 2,065.000
                                                 ------------------
                                     --------------                              ------------------
                                                                 ------------------              ------------------
TOTAL ASSETS                         ######### ######### ######### ######### #########

LIABILITIES
Long Term Debt Due In One Year          159.000            3.000           1.000           1.000 3,145.000
Notes Payable                              0.000 1,355.000 1,000.000 1,000.000                             0.000
Accounts Payable                        268.000         315.000         383.000         271.000         775.000
Taxes Payable                           810.000 1,237.000               390.000            0.000           0.000
Accrued Expenses                      1,584.000 1,550.000 2,078.000 1,409.000 1,895.000
Other Current Liabilities             4,109.000 4,927.000 6,177.000 6,468.000 8,876.000
                                                 ------------------
                                     --------------                              ------------------
                                                                 ------------------              ------------------
Total Current Liabilities             6,930.000 9,387.000 ######### 9,149.000 #########

Long Term Debt                        5,735.000 6,235.000 ######### 9,237.000 #########
Deferred Taxes                          564.000 1,121.000 1,218.000                     480.000         424.000
Investment Tax Credit                      0.000           0.000           0.000           0.000           0.000
Other Liabilities                       579.000         594.000 2,761.000 3,460.000 3,754.000
                                                 ------------------
                                     --------------                              ------------------
                                                                 ------------------              ------------------
TOTAL LIABILITIES                    ######### ######### ######### ######### #########

Redeemable Noncontrolling Interest      209.000         316.000             @CF             @CF           0.000

EQUITY
Preferred Stock - Redeemable               0.000           0.000           0.000           0.000          0.000
Preferred Stock - Nonredeemable            0.000           0.000           0.000           0.000          0.000
                                                     ------------------
                                         --------------                              ------------------
                                                                     ------------------              ------------------
Total Preferred Stock                          0.000           0.000           0.000           0.000           0.000

Common Stock                                 52.320          51.070          51.500          50.100          50.300
Capital Surplus                           9,163.680 ######### ######### ######### #########
Retained Earnings                         5,796.000 6,626.000 ######### ######### #########
Less: Treasury Stock                           0.000           0.000           0.000           0.000           0.000
                                                     ------------------
                                         --------------                              ------------------
                                                                     ------------------              ------------------
Common Equity                            ######### ######### ######### ######### #########
                                                     ------------------
                                         --------------                              ------------------
                                                                     ------------------              ------------------
Shareholders Equity - Parent             ######### ######### ######### ######### #########
 Nonredeemable Noncontrolling Interest          @NA             @NA             @NA             @NA         401.000
                                                     ------------------
                                         --------------                              ------------------
                                                                     ------------------              ------------------
STOCKHOLDERS EQUITY TOTAL                       @NA             @NA             @NA             @NA #########
                                                     ------------------
                                         --------------                              ------------------
                                                                     ------------------              ------------------
TOTAL LIABILITIES & EQUITY               ######### ######### ######### ######### #########

Common Shares Outstanding                5,232.000       5,107.000       5,150.000       5,005.000       5,026.000
Oracle Corp.
ORCL
Statement of Cash Flows
                                                 May06         May07         May08         May09
INDIRECT OPERATING ACTIVITIES
Income Before Extraordinary Items              3,381.000 4,274.000 5,521.000 5,593.000
Depreciation and Amortization                    806.000 1,127.000 1,480.000 1,976.000
Extraordinary Items and Disc. Operations           0.000     0.000     0.000     0.000
Deferred Taxes                                   (40.000)   56.000  (135.000) (395.000)
Equity in Net Loss (Earnings)                       @CF       @CF      0.000     0.000
Sale of Property, Plant, and Equipment
and Sale of Investments - Loss (Gain)              0.000     0.000     0.000     0.000
Funds from Operations - Other                    370.000   730.000   521.000   598.000
Receivables - Decrease (Increase)               (355.000) (723.000) (661.000)  454.000
Inventory - Decrease (Increase)                    0.000     0.000     0.000     0.000
Accounts Payable and Accrued Liabs-Inc (Dec)        @CF       @CF       @CF       @CF
Income Taxes - Accrued - Inc (Dec)                64.000   167.000   368.000   142.000
Other Assets and Liabilities - Net Change        315.000  (111.000)  308.000  (113.000)
Operating Activities - Net Cash Flow           4,541.000 5,520.000 7,402.000 8,255.000

INVESTING ACTIVITIES
Investments - Increase                          2,986.000     5,405.000     5,624.000     9,315.000
Sale of Investments                             3,676.000     5,756.000     4,281.000     8,404.000
Short-Term Investments - Change                      @CF           @CF           @CF           @CF
Capital Expenditures                              236.000       319.000       243.000       529.000
Sale of Property, Plant, and Equipment            140.000         2.000       153.000         0.000
Acquisitions                                    3,953.000     5,005.000     7,643.000     1,159.000
Investing Activities - Other                        0.000         0.000         0.000         0.000
Investing Activities - Net Cash Flow           (3,359.000)   (4,971.000)   (9,076.000)   (2,599.000)

FINANCING ACTIVITIES
Sale of Common and Preferred Stock                632.000       924.000    1,288.000    760.000
Purchase of Common and Preferred Stock          2,067.000     3,937.000    2,023.000 3,972.000
Cash Dividends                                      0.000         0.000        0.000    250.000
Long-Term Debt - Issuance                      #########      4,079.000    6,171.000      0.000
Long-Term Debt - Reduction                      9,635.000     2,418.000    2,560.000 1,004.000
Current Debt - Changes                               @CF           @CF          @CF        @CF
Financing Activities - Other                      (39.000)      (46.000)     (49.000)   (53.000)
Financing Activities - Net Cash Flow            1,527.000    (1,139.000)   3,281.000 (4,422.000)
Exchange Rate Effect                               56.000       149.000      437.000   (501.000)
Cash and Equivalents - Change                   2,765.000      (441.000)   2,044.000    733.000

DIRECT OPERATING ACTIVITIES
Interest Paid - Net                               74.000       354.000       347.000       627.000
Income Taxes Paid                              1,413.000     1,197.000     1,687.000     2,170.000

SUPPLEMENTAL STATEMENT-FINANCIAL POSITION
Total Funds from Operations                   @NA   @NA   @NA   @NA
Other Sources of Funds                        @NA   @NA   @NA   @NA
Total Sources of Funds                        @NA   @NA   @NA   @NA
Total Working Capital Change                  @NA   @NA   @NA   @NA
Other Uses of Funds                           @NA   @NA   @NA   @NA
Total Uses of Funds                           @NA   @NA   @NA   @NA
Working Capital Changes - Other - Inc (Dec)   @NA   @NA   @NA   @NA
  May10

 6,230.000
 2,271.000
     0.000
  (511.000)
     0.000

     0.000
   590.000
  (362.000)
    73.000
      @CF
   (79.000)
   469.000
 8,681.000



 15,703.000
 11,220.000
       @CF
    230.000
      0.000
  5,606.000
      0.000
(10,319.000)



   874.000
   992.000
 1,004.000
 7,220.000
 3,582.000
      @CF
    38.000
 2,664.000
  (107.000)
   919.000



   652.000
 2,488.000
@NA
@NA
@NA
@NA
@NA
@NA
@NA
Oracle Corp.
ORCL


Calculation of FCFF and FCFE


Free cash flows to the firm
(FCFF) *                              2007        2008         2009         2010
Effective tax rate computation

  Taxes from income statement     $1,712.00   $2,313.00   $2,241.00    $2,108.00
  Change in deferred income
taxes from B.S.                      $56.00    -$135.00    -$395.00     -$511.00
    Cash taxes paid               $1,656.00   $2,448.00   $2,636.00    $2,619.00
  Pre-tax income                  $6,057.00   $7,894.00   $7,918.00    $8,338.00
      Effective cash tax rate       27.34%       31.01%      33.29%       31.41%

EBIT**                            $6,133.00   $8,009.00   $8,555.00    $9,838.00
EBIT(1-t)                         $4,456.22   $5,525.34   $5,706.93    $6,747.84
Add depreciation and
amoritization                     $1,127.00   $1,480.00   $1,976.00    $2,271.00
After-tax EBITDA                  $5,583.22   $7,005.34   $7,682.93    $9,018.84


Change in net working capital
 Current assets less cash         $5,863.00   $7,060.00   $5,957.00    $8,535.00
 Prior year C.A. less cash        $4,369.00   $5,863.00   $7,060.00    $5,957.00
  Change in current assets less
cash                              $1,494.00   $1,197.00   -$1,103.00   $2,578.00

 Current liabilities              $9,387.00 $10,029.00 $9,149.00 $14,691.00
 Prior year C.L.                  $6,930.00 $9,387.00 $10,029.00 $9,149.00
  Change in current liabilities   $2,457.00   $642.00   -$880.00 $5,542.00

    Change in non-cash W.C.        -$963.00    $555.00     -$223.00    -$2,964.00

Gross capital expenditures
 Net P&E                          $1,603.00   $1,688.00   $1,922.00    $2,763.00
 Prior year Net P&E               $1,391.00   $1,603.00   $1,688.00    $1,922.00
 Add depreciation                 $1,127.00   $1,480.00   $1,976.00    $2,271.00
  Gross capital expenditures      $1,339.00   $1,565.00   $2,210.00    $3,112.00

FCFF                              $5,207.22   $4,885.34   $5,695.93    $8,870.84

Free cash flows to equity
(FCFE)***
FCFF                              $5,207.22   $4,885.34   $5,695.93    $8,870.84
Add net increase in debt,
minority interest, and other non-
current liabilities from B.S.          $359.00   $6,165.00   -$299.00   $5,711.00

Effective tax rate for interest****     28.26%     29.30%      28.30%     25.28%
Subtract after-tax interest
expense                                $249.22    $271.82     $420.27    $517.17
    FCFE                              $5,815.44 $11,322.15   $5,817.20 $15,099.01
Oracle Corporation (ORCL)
Forecast of Free Cash Flows
Analyst: Kumar Phillips
                                2/11/2011


Assumptions
                                            Average          2007         2008         2009         2010
Sales Growth Rate                              17.20%      25.15%       24.64%        3.66%       15.34%
Cost of Goods (% of Sales)                     20.70%      21.90%       21.01%       19.49%       20.38%
SG&A (% of Sales)                              36.03%      37.75%       36.68%       35.22%       34.47%
DD& A (% of Sales)                              7.46%       6.26%        6.60%        8.50%        8.47%
Other Income as % of Sales                      1.36%       2.37%        1.98%        0.98%        0.11%
Tax Rate                                       30.76%      27.34%       31.01%       33.29%       31.41%
Non-Cash Current Assets as %
revenues                                      30.37%       32.58%       31.48%       25.62%       31.82%
Current liabilities as % of revenues          47.75%       52.16%       44.71%       39.35%       54.78%
Net P&E as% of Sales                           8.59%        9.67%        8.91%        7.53%        8.27%
Net P&E as % following year Sales              7.63%        7.15%        7.26%        7.17%        8.96%
Average Interest Rate on Debt                  5.33%        5.50%        3.85%        6.82%        5.15%

For FCFE calculations

Debt to Total Liabilities and Net Worth     25.983%      19.762%      27.496%      26.780%      29.895%
Interest rate                               4.277%          5.020%       3.031%       4.961%       4.096%
Effective tax rate for interest*            27.787%        28.265%      29.301%      28.303%      25.282%


Free cash flows to the firm (FCFF) *

Sales Forecasts                                         17,996.000   22,430.000   23,252.000   26,820.000
Cost of Goods                                            3,012.000    3,942.000    4,713.000    4,531.000
SG& A Expenses                                           5,604.000    6,794.000    8,228.000    8,190.000
Depreciation                                               806.000    1,127.000    1,480.000    1,976.000
Other Income                                               284.000      426.000      444.000      227.000

EBIT                                                     8,858.000   10,993.000    9,275.000   12,350.000



EBIT                                                     8,858.000   10,993.000    9,275.000   12,350.000
EBIT(1-t)                                                6,436.199    7,583.972    6,187.238    8,470.814
Add depreciation and amortization                          806.000    1,127.000    1,480.000    1,976.000
After-tax EBITDA                                         7,242.199    8,710.972    7,667.238   10,446.814



Change in net working capital
 Current assets less cash                                5,863.000    7,060.000    5,957.000    8,535.000
 Prior year C.A. less cash               4,369.000    5,863.000    7,060.000     5,957.000

  Change in current assets less cash     1,494.000    1,197.000   (1,103.000)    2,578.000

 Current liabilities                     9,387.000 10,029.000      9,149.000 14,691.000
 Prior year C.L.                         6,930.000  9,387.000     10,029.000   9,149.000
  Change in current liabilities          2,457.000    642.000       (880.000) 5,542.000
    Change in non-cash W.C.               (963.000)   555.000       (223.000) (2,964.000)

Gross capital expenditures
 Net PP&E                                1,603.000    1,688.000    1,922.000     2,763.000
 Prior year Net PP&E                     1,391.000    1,603.000    1,688.000     1,922.000
 Change Net PE                             212.000       85.000      234.000       841.000
 Accumulated Depreciation                1,127.000    1,480.000    1,976.000     2,271.000
Gross capital expenditures               1,339.000    1,565.000    2,210.000     3,112.000

FCFF                                     5,207.221    4,885.337    5,695.935     8,870.844

Free cash flows to equity (FCFE)**
FCFF                                     5,207.221    4,885.337    5,695.935     8,870.844
Debt and other non-current liabilities   6,832.000   12,997.000   12,698.000    18,409.000
Prior year debt and other non-current
liab.                                    6,473.000    6,832.000   12,997.000 12,698.000
   Net increase (add)                      359.000    6,165.000     (299.000) 5,711.000
Interest before tax                        343.000      394.000      630.000    754.000
Subtract after-tax interest expense        249.223      271.817      420.265    517.166
    FCFE                                 5,815.444   11,322.155    5,817.200 15,099.009
Short run              Intermediate high growth            Declining growth

     2011      2012         2013      2014          2015        2016        2017         2018        2019
   15.00%    15.00%       10.00%    10.00%        10.00%          8%          8%           8%          6%
   21.00%    21.00%       21.00%    21.00%        21.00%      21.00%      21.00%       21.00%      21.00%
   34.00%    34.00%       34.00%    34.00%        34.00%      34.00%      34.00%       34.00%      34.00%
    7.50%     7.50%        7.50%     7.50%         7.50%       7.50%       7.50%        7.50%       7.50%
    1.30%     1.30%        1.30%     1.30%         1.30%       1.30%       1.30%        1.30%       1.30%
   31.50%    31.50%       31.50%    31.50%        31.50%      31.50%      31.50%       31.50%      31.50%

      30%       30%          30%       30%           30%         30%         30%          30%         30%
   47.75%    47.75%       47.75%    47.75%        47.75%      47.75%      47.75%       47.75%      47.75%
    8.50%     8.50%        8.50%     8.50%         8.50%       8.50%       8.50%        8.50%       8.50%
    7.25%     7.25%        7.25%     7.25%         7.25%       7.25%       7.25%        7.25%       7.25%
    5.15%     5.15%        5.15%     5.15%         5.15%       5.15%       5.15%        5.15%       5.15%



 25.000%    25.000%     25.000%    25.000%    25.000%       25.000%      25.000%     25.000%    25.000%
   4.250%     4.250%      4.250%     4.250%     4.250%        4.250%       4.250%      4.250%      4.250%
  25.000%    25.000%     25.000%    25.000%    25.000%       25.000%      25.000%     25.000%     25.000%




30,843.000 ######### ######### ######### #########         #########    #########    ######### 63,039.047
 6,477.030 7,448.585 8,193.443 9,012.787 9,914.066         #########    #########    ######### 13,238.200
10,486.620 ######### ######### ######### #########         #########    #########    ######### 21,433.276
 2,313.225 2,660.209 2,926.230 3,218.853 3,540.738          3,823.997    4,129.917   4,460.310  4,727.929
   400.959   461.103   507.213   557.934   613.728            662.826      715.852     773.120    819.508

11,967.084 ######### ######### ######### ######### ######### ######### ######### 24,459.150



11,967.084 ######### ######### ######### #########         #########    #########    ######### 24,459.150
 8,197.453 9,427.070 ######### ######### #########         #########    #########    ######### 16,754.518
 2,313.225 2,660.209 2,926.230 3,218.853 3,540.738          3,823.997    4,129.917   4,460.310  4,727.929
10,510.678 ######### ######### ######### #########         #########    #########    ######### 21,482.447




 9,252.900 ######### ######### ######### ######### ######### ######### ######### 18,911.714
8,535.000    9,252.900 ######### ######### ######### ######### ######### ######### 17,841.240

  717.900    1,387.935   1,064.084   1,170.492   1,287.541   1,133.036   1,223.679   1,321.573   1,070.474

14,727.337 ######### ######### ######### ######### ######### ######### ######### 30,100.746
14,691.000 ######### ######### ######### ######### ######### ######### ######### 28,396.930
    36.337 2,209.101 1,693.644 1,863.008 2,049.309 1,803.392 1,947.663 2,103.476  1,703.816
   681.563  (821.166) (629.560) (692.516) (761.768) (670.356) (723.984) (781.903)  (633.341)



2,621.655    3,014.903   3,316.394   3,648.033   4,012.836   4,333.863   4,680.572   5,055.018   5,358.319
2,763.000    2,621.655   3,014.903   3,316.394   3,648.033   4,012.836   4,333.863   4,680.572   5,055.018
 (141.345)     393.248     301.490     331.639     364.803     321.027     346.709     374.446     303.301
2,313.225    2,660.209   2,926.230   3,218.853   3,540.738   3,823.997   4,129.917   4,460.310   4,727.929
2,171.880    3,053.457   3,227.720   3,550.492   3,905.541   4,145.024   4,476.626   4,834.756   5,031.230

7,657.235    9,854.988 ######### ######### ######### ######### ######### ######### 17,084.558



 7,657.235 9,854.988 ######### ######### ######### ######### ######### ######### 17,084.558
18,544.054 ######### ######### ######### ######### ######### ######### ######### 17,799.572

18,409.000 ######### ######### ######### ######### ######### ######### ######### 17,882.082
   135.054  (106.979)  (82.017)  (90.219)  (99.241)  (87.332)  (94.319) (101.864)   (82.510)
   788.122   783.576   780.090   776.256   772.038   768.326   764.318   759.988    756.482
   591.092   587.682   585.067   582.192   579.028   576.245   573.238   569.991    567.361
 7,201.198 9,160.327 ######### ######### ######### ######### ######### ######### 16,434.687
     2020         2021         2022         2023         2024
       6%           6%           4%           4%           4%
   21.00%       21.00%       21.00%       21.00%       21.00%
   34.00%       34.00%       34.00%       34.00%       34.00%
    7.50%        7.50%        7.50%        7.50%        7.50%
    1.30%        1.30%        1.30%        1.30%        1.30%
   31.50%       31.50%       31.50%       31.50%       31.50%

      30%          30%          30%          30%          30%
   47.75%       47.75%       47.75%       47.75%       47.75%
    8.50%        8.50%        8.50%        8.50%        8.50%
    7.25%        7.25%        7.25%        7.25%        7.25%
    5.15%        5.15%        5.15%        5.15%        5.15%



25.000%      25.000%      25.000%      25.000%      25.000%
   4.250%       4.250%       4.250%       4.250%       4.250%
  25.000%      25.000%      25.000%      25.000%      25.000%




66,821.390   70,830.674   73,663.901   76,610.457   79,674.875
14,032.492   14,874.441   15,469.419   16,088.196   16,731.724
22,719.273   24,082.429   25,045.726   26,047.555   27,089.457
 5,011.604    5,312.301    5,524.793    5,745.784    5,975.616
   868.678      920.799      957.631      995.936    1,035.773

25,926.699   27,482.301   28,581.593   29,724.857   30,913.851



25,926.699   27,482.301   28,581.593   29,724.857   30,913.851
17,759.789   18,825.376   19,578.391   20,361.527   21,175.988
 5,011.604    5,312.301    5,524.793    5,745.784    5,975.616
22,771.393   24,137.677   25,103.184   26,107.311   27,151.604




20,046.417   21,249.202   22,099.170   22,983.137   23,902.462
18,911.714   20,046.417   21,249.202   22,099.170   22,983.137

 1,134.703    1,202.785     849.968      883.967      919.325

31,906.791 33,821.199 35,174.046 36,581.008 38,044.249
30,100.746 31,906.791 33,821.199 35,174.046 36,581.008
 1,806.045  1,914.407  1,352.848  1,406.962  1,463.240
  (671.342)  (711.622)  (502.880)  (522.995)  (543.915)



 5,679.818    6,020.607    6,261.432    6,511.889    6,772.364
 5,358.319    5,679.818    6,020.607    6,261.432    6,511.889
   321.499      340.789      240.824      250.457      260.476
 5,011.604    5,312.301    5,524.793    5,745.784    5,975.616
 5,333.103    5,653.090    5,765.617    5,996.242    6,236.091

18,109.632   19,196.210   19,840.447   20,634.065   21,459.428



18,109.632   19,196.210   19,840.447   20,634.065   21,459.428
17,712.111   17,619.403   17,553.889   17,485.754   17,414.895

17,799.572 17,712.111 17,619.403 17,553.889 17,485.754
   (87.461)   (92.708)   (65.514)   (68.134)   (70.860)
   752.765    748.825    746.040    743.145    740.133
   564.574    561.618    559.530    557.358    555.100
17,457.598 18,541.883 19,215.403 20,008.572 20,833.468
Oracle Corp.
ORCL



Valuation
Date of valuation                            2/11/2011

Capital costs                            Assigned
Current 20-year T-bond rate                      4.30% Class Discussion
Equity risk premium                              4.30% Class Discussion
Oracle stock beta                                  1.08 Yahoo Finance
Oracle current ke                                8.94%
Oracle current kd                                5.33%
Effective tax rate                              30.76%
Oracle after-tax kd                              3.69%

Debt value estimate: book value (000s)             18409
Current market value of Oracle
 Number of shares outstanding (000s)              5026
 Price                                           33.47
Equity value (000s)                          168220.22
Total value                                  186629.22
Debt ratio                                       9.86%
WACC                                             8.43%

Forecasts
                                                    2011                 2012       2013       2014
FCFF                                            $7,657.23            $9,854.99 $10,697.85 $11,767.63
FCFE                                            $7,201.20            $9,160.33 $10,030.76 $11,095.22
Valuation

Terminal growth rate assumption                       4%
                                         FCFF               FCFE
Cost of capital                                  8.43%                    8.94%
Cash flow in 2024                           $21,459.43               $20,833.47
Terminal value at 2024                     $504,283.09              $438,244.47
Present value of Terminal Value            $191,024.91              $156,774.94
Present value of intermediate CF          $112,393.46              $103,543.29
Total                                      $303,418.36              $260,318.24
Add Cash                                    $18,469.00               $18,469.00
Subtract value of debt                          $18.41
Equity value                               $321,868.95             $278,787.24
Shares outstanding                                5026
Value per share                                 $64.04                  $55.47
Current Price                                   $33.47
      2015      2016        2017      2018       2019       2020       2021       2022
$12,944.40 $13,900.55 $15,012.60 $16,213.61 $17,084.56 $18,109.63 $19,196.21 $19,840.45
$12,266.13 $13,236.98 $14,345.04 $15,541.75 $16,434.69 $17,457.60 $18,541.88 $19,215.40
      2023      2024
$20,634.06 $21,459.43
$20,008.57 $20,833.47

				
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