Open Text Price To Earning vs. Revenue
| OTEX Stock | USD 30.59 0.57 1.90% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.79 | 0.7264 |
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For Open Text profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Open Text to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Open Text Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Open Text's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Open Text Corp over time as well as its relative position and ranking within its peers.
Open |
Open Text's Revenue Breakdown by Earning Segment
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Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Open Text. If investors know Open will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Open Text listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.058 | Dividend Share 1.013 | Earnings Share 1.73 | Revenue Per Share 20.743 | Quarterly Revenue Growth (0.11) |
The market value of Open Text Corp is measured differently than its book value, which is the value of Open that is recorded on the company's balance sheet. Investors also form their own opinion of Open Text's value that differs from its market value or its book value, called intrinsic value, which is Open Text's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Open Text's market value can be influenced by many factors that don't directly affect Open Text's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Open Text's value and its price as these two are different measures arrived at by different means. Investors typically determine if Open Text is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Open Text's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Open Text Corp Revenue vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Open Text's current stock value. Our valuation model uses many indicators to compare Open Text value to that of its competitors to determine the firm's financial worth. Open Text Corp is rated below average in price to earning category among its peers. It is regarded third in revenue category among its peers totaling about 65,877,792 of Revenue per Price To Earning. At this time, Open Text's Total Revenue is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Open Text's earnings, one of the primary drivers of an investment's value.Open Text's Earnings Breakdown by Geography
Open Revenue vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Open Text |
| = | 87.58 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Open Text |
| = | 5.77 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Open Revenue vs Competition
Open Text Corp is regarded third in revenue category among its peers. Market size based on revenue of Information Technology industry is now estimated at about 69.77 Billion. Open Text holds roughly 5.77 Billion in revenue claiming about 8% of equities under Information Technology industry.
Open Text Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Open Text, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Open Text will eventually generate negative long term returns. The profitability progress is the general direction of Open Text's change in net profit over the period of time. It can combine multiple indicators of Open Text, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -69.6 M | -66.1 M | |
| Operating Income | 887.1 M | 931.4 M | |
| Net Income | 465.3 M | 488.5 M | |
| Income Tax Expense | 264 M | 277.2 M | |
| Income Before Tax | 729.3 M | 765.8 M | |
| Total Other Income Expense Net | -157.8 M | -149.9 M | |
| Net Income Applicable To Common Shares | 172.9 M | 189.2 M | |
| Net Income From Continuing Ops | 465.3 M | 317.8 M | |
| Non Operating Income Net Other | 39.6 M | 41.6 M | |
| Interest Income | 49.1 M | 48.7 M | |
| Net Interest Income | -516.2 M | -490.4 M | |
| Change To Netincome | 175.2 M | 184 M | |
| Net Income Per Share | 1.71 | 1.80 | |
| Income Quality | 2.08 | 2.04 | |
| Net Income Per E B T | 0.64 | 1.02 |
Open Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Open Text. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Open Text position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Open Text's important profitability drivers and their relationship over time.
Use Open Text in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Open Text position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Open Text will appreciate offsetting losses from the drop in the long position's value.Open Text Pair Trading
Open Text Corp Pair Trading Analysis
The ability to find closely correlated positions to Open Text could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Open Text when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Open Text - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Open Text Corp to buy it.
The correlation of Open Text is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Open Text moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Open Text Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Open Text can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Open Text position
In addition to having Open Text in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Aircraft theme has 45 constituents at this time.
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Additional Tools for Open Stock Analysis
When running Open Text's price analysis, check to measure Open Text's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Open Text is operating at the current time. Most of Open Text's value examination focuses on studying past and present price action to predict the probability of Open Text's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Open Text's price. Additionally, you may evaluate how the addition of Open Text to your portfolios can decrease your overall portfolio volatility.