Open Text Valuation
| OTEX Stock | USD 29.45 0.27 0.93% |
At this time, the company appears to be undervalued. Open Text Corp holds a recent Real Value of $34.33 per share. The prevailing price of the company is $29.45. Our model determines the value of Open Text Corp from analyzing the company fundamentals such as Operating Margin of 0.20 %, shares outstanding of 265.88 M, and Return On Equity of 0.12 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Open Text's valuation include:
Price Book 1.8935 | Enterprise Value 13.5 B | Enterprise Value Ebitda 6.8469 | Price Sales 1.395 | Forward PE 7.9936 |
Undervalued
Today
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 29.45 | Real 34.33 | Target 48.2 | Hype 29.13 | Naive 30.68 |
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.
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: 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 |
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Open Valuation Trend
Analysing the historical paterns of Open Text's enterprise value and its market capitalization is a good way to estimate and gauge the value of Open Text Corp over time and is usually enough for investors to make rational market timing decisions.
Open Revenue by Product
Open Text Total Value Analysis
Open Text Corp is now forecasted to have valuation of 13.51 B with market capitalization of 7.83 B, debt of 6.69 B, and cash on hands of 1.7 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Open Text fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
13.51 B | 7.83 B | 6.69 B | 1.7 B |
Open Text Investor Information
About 78.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.89. 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 0.87. The entity last dividend was issued on the 29th of November 2024. 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 Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Income | 931.4 M | 887.1 M |
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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 40.61 percent. This suggests that the Company is making $0.41 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.Open Text Ownership Allocation
Open Text owns a total of 265.88 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 previous year's revenue of 5.77 B. Net Income was 465.28 M with profit before overhead, payroll, taxes, and interest of 3.39 B.Open Text Past Distributions to stockholders
About Open Text Valuation
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 Reported | Projected for Next Year | ||
| Gross Profit | 4.2 B | 4.4 B | |
| Pretax Profit Margin | 0.13 | 0.13 | |
| Operating Profit Margin | 0.15 | 0.16 | |
| Net Profit Margin | 0.08 | 0.08 | |
| Gross Profit Margin | 0.73 | 0.79 |
A single share of Open Text represents a small ownership stake in the entity. As a stockholder of Open, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Open Text Dividends Analysis For Valuation
Dividend Yield is likely to rise to 0.03 in 2024, whereas Dividends Paid is likely to drop slightly above 173.7 M in 2024. . At this time, Open Text's Retained Earnings are fairly stable compared to the past year. Earnings Yield is likely to rise to 0.06 in 2024, whereas Retained Earnings Total Equity is likely to drop slightly above 1.3 B in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 267.4 M | 173.7 M | |
| Dividend Yield | 0.03 | 0.03 | |
| Dividend Payout Ratio | 0.57 | 0.46 | |
| Dividend Paid And Capex Coverage Ratio | 2.27 | 2.15 |
There are various types of dividends Open Text can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Open shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Open Text Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Open pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Open Text by the value of the dividends paid out.
Open Text Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 272.6 M | |
| Quarterly Earnings Growth Y O Y | 0.058 | |
| Forward Price Earnings | 7.9936 |
Open Text Current Valuation Indicators
Valuation refers to the process of determining the present value of Open Text Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Open we look at many different elements of the entity such as Open's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Open Text, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Open Text's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Open Text's worth.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.