Open Text Valuation

OTEX Stock  CAD 34.37  0.11  0.32%   
At this time, the company appears to be fairly valued. Open Text Corp holds a recent Real Value of C$33.92 per share. The prevailing price of the company is C$34.37. Our model determines the value of Open Text Corp from analyzing the company fundamentals such as Return On Equity of 0.11, operating margin of 0.23 %, and Shares Outstanding of 250.6 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Open Text's valuation include:
Price Book
1.5483
Enterprise Value
15.9 B
Enterprise Value Ebitda
7.6283
Price Sales
1.6668
Forward PE
6.0096
Fairly Valued
Today
34.37
Please note that Open Text's price fluctuation is very steady at this time. Calculation of the real value of Open Text Corp is based on 3 months time horizon. Increasing Open Text's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Open Text is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Open Stock. However, Open Text's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  34.37 Real  33.92 Hype  34.4
The intrinsic value of Open Text's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Open Text's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
33.92
Real Value
36.05
Upside
Estimating the potential upside or downside of Open Text Corp helps investors to forecast how Open stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Open Text more accurately as focusing exclusively on Open Text's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.830.920.96
Details
Hype
Prediction
LowEstimatedHigh
32.2734.4036.53
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Open Text's intrinsic value based on its ongoing forecasts of Open Text's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Open Text's closest peers.

Open Text Cash

1.4 Billion

Open Text Total Value Analysis

Open Text Corp is now estimated to have takeover price of 15.88 B with market capitalization of 8.63 B, debt of 6.64 B, and cash on hands of 1.16 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Open Text fundamentals before making investing decisions based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
15.88 B
8.63 B
6.64 B
1.16 B

Open Text Investor Information

About 83.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.55. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Open Text Corp has Price/Earnings To Growth (PEG) ratio of 1.15. The entity last dividend was issued on the 5th of December 2025. The firm had 2:1 split on the 25th of January 2017. Based on the key indicators related to Open Text's liquidity, profitability, solvency, and operating efficiency, Open Text Corp may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Income1.1 BB
Sufficiently Up
Slightly volatile

Open Text Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Open Text has an asset utilization ratio of 37.52 percent. This suggests that the Company is making C$0.38 for each dollar of assets. An increasing asset utilization means that Open Text Corp is more efficient with each dollar of assets it utilizes for everyday operations.
 
Dot-com Bubble
 
Housing Crash
 
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Yuan Drop
 
Covid
 
Interest Hikes

Open Text Profitability Analysis

Based on Open Text's profitability indicators, Open Text Corp is yielding more profit at the present time then in previous quarter. It has a moderate chance of reporting better profitability numbers in March. Profitability indicators assess Open Text's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1995-12-31
Previous Quarter
145 M
Current Value
168.1 M
Quarterly Volatility
96.5 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
At this time, Open Text's Gross Profit is very stable compared to the past year. As of the 10th of February 2026, Operating Profit Margin is likely to grow to 0.19, while Pretax Profit Margin is likely to drop 0.05.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.730.635
Fairly Up
Slightly volatile
For Open Text profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Open Text Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Open Text 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 over time as well as its relative position and ranking within its peers.

Open Text Earnings per Share Projection vs Actual

By analyzing Open Text's earnings estimates, investors can diagnose different trends across Open Text's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Open Text Corp is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
Open Text is projected to generate 0.9239 in earnings per share on the 31st of March 2026. Open Text earnings estimates show analyst consensus about projected Open Text EPS (Earning Per Share). It derives the highest and the lowest estimates based on Open Text's historical volatility. Many public companies, such as Open Text, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Open Text Ownership Allocation

Open Text owns a total of 250.6 Million outstanding shares. The majority of Open Text Corp outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Open Text Corp to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Open Text. Please pay attention to any change in the institutional holdings of Open Text Corp as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.

Open Text Profitability Analysis

The company reported the revenue of 5.17 B. Net Income was 436.07 M with profit before overhead, payroll, taxes, and interest of 3.95 B.

Open Text Past Distributions to stockholders

About Open Text Valuation

We use absolute and relative valuation methodologies to arrive at the intrinsic value of Open Text Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Open Text Corp based exclusively on its fundamental and basic technical indicators. By analyzing Open Text's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Open Text's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Open Text. We calculate exposure to Open Text's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Open Text's related companies.
Last ReportedProjected for Next Year
Gross Profit4.3 B4.5 B
Pretax Profit Margin 0.08  0.05 
Operating Profit Margin 0.18  0.19 
Net Profit Margin 0.08  0.08 
Gross Profit Margin 0.63  0.73 
When determining whether Open Text Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Open Text's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Open Text Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Open Text Corp Stock:
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Open Text Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.
You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
It's important to distinguish between Open Text's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Open Text should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, Open Text's market price signifies the transaction level at which participants voluntarily complete trades.