Financial Engine

Oracle (ORCL) 3-Statement Financial Model, Rule of 40 & 5-Year DCF Summary

Golden Door Asset's Financial Engine connects audited SEC 10-K/10-Q income statements, balance sheets, and cash flow statements to a deterministic 5-year unlevered DCF valuation, Reverse-DCF implied growth solver, ASC 350-40 software capitalization bridge, and 1-year lagged R&D capital efficiency benchmark across 250 public software companies (166 ranked in the R&D Return universe).

Company & Ticker

Oracle (ORCL)

Fundamental Verdict

Pass

Rule of 40 Score

6.5%

TTM Revenue (USD)

$57.40B

TTM Gross Margin

70.5%

TTM Free Cash Flow Margin

-0.7%

1-Year Lagged R&D Return & Grade

Below $10M R&D rank floor

Core Software Valuation Formulas Used by the Financial Engine

• Rule of 40 (%) = YoY Revenue Growth Rate (%) + Unlevered Free Cash Flow Margin (%). Elite institutional threshold: ≥ 40.0%.
• 1-Year Lagged R&D Return Multiple ($x) = (Gross Profit FY − Gross Profit Prior FY) / R&D Expense Prior FY. Measures incremental gross profit dollars created per $1.00 of prior-year R&D investment.
• 5-Year Unlevered DCF Enterprise Value = Sum of discounted Years 1–5 Unlevered Free Cash Flows at WACC + Discounted Terminal Value (Gordon Growth Perpetuity or Exit EV/FCF Multiple).
• Fundamental Verdict Rubric (Buy / Watch / Pass): Derived strictly from audited fundamentals (Rule of 40 ≥ 40% and Operating/FCF Margin ≥ 15% = Buy; Composite Fundamental Score ≥ 55 = Buy; ≥ 35 = Watch; < 35 = Pass).