Open Text Valuation

OTEX Stock  USD 23.99  -0.83  -3.34%   
Currently, Open Text appears to be overvalued. Open Text Corp has a prevailing Real Value of $22.31 per share. The prevailing price of Open Text is $23.99. Our model approximates the value of Open Text Corp from inspecting Open Text fundamentals such as Operating Margin of 0.23 %, return on equity of 0.11, and Shares Outstanding of 250.6 M as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Open Text's valuation include:
 Price Book
1.5382
 Enterprise Value
11.5 B
 Enterprise Value Ebitda
7.5992
 Price Sales
1.1783
 Forward PE
5.5402
Overvalued
Today
23.99
Please note that Open Text's price fluctuation is Low 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  23.99 Real  22.31 Target  33.09 Hype  23.99 Naive  23.66
The fair value of Open Stock is determined by what a typical buyer is willing to pay for full or partial control of Open Text Corp. Since Open Text is currently traded on the exchange, buyers and sellers determine its market value.
22.31
Real Value
24.91
Upside
Investors in Open Text Corp should carefully weigh both the upside potential and the downside risk of the stock. A complete valuation of Open considers technical factors, market conditions, and broader macro trends.
Earnings
Estimates
LowProjectedHigh
0.991.041.05
Details
Hype
Prediction
LowEstimatedHigh
21.3923.9926.59
Details
Potential
Annual Dividend
LowForecastedHigh
0.610.650.70
Details
12 Analysts
Consensus
LowTarget PriceHigh
30.1133.0936.73
Details
The most defensible valuation for Open Text uses at least two methods: an intrinsic value estimate based on Open Text's projected cash flows, and a relative value check against its direct peers.
Cash is advancing compared to historical levels. Open Text reported 1.33 Billion in Cash for the previous period. As of March 12th, 2026, Accounts Payable is estimated to rise to approximately 164.5 M, though Change To Account Receivables is likely to advance to about -61 M.

Open Text Cash

1.4 Billion

Open Revenue by Product

Open Text Total Value Analysis

From a capital-structure perspective, Open Text Corp is being framed with enterprise value of 11.54 B, market capitalization of 6.1 B, debt obligations near 6.64 B, and cash resources of 1.7 B. That snapshot should be treated as one valuation lens rather than as final proof of fair value because the interpretation can shift quickly when financing assumptions change.
  Takeover PriceMarket CapDebt ObligationsCash
11.54 B
6.1 B
6.64 B
1.7 B

Open Text Investor Information

About 91.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.54. 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 1.02. The company last dividend was issued on the 6th of March 2026. The firm completed a 2:1 stock split on 25th of January 2017. Open Text Corp reflects a mix of operating scale and capital structure considerations. Operating returns remain positive, suggesting ongoing earnings capacity. In technology businesses, recurring revenue quality, R&D investment discipline, and operating margin expansion are key durability indicators.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Income1.3 B1.2 B
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 38.44 percent. This suggests that the Company is making $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.
Macro event markers
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
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 than in the previous quarter. It has a moderate chance of reporting better profitability numbers in April. Profitability indicators assess Open Text's ability to earn profits and add value for shareholders.
 
Net Income  
 First Reported
1995-12-31
 Previous Quarter
146.6 M
 Current Value
168.1 M
 Quarterly Volatility
95.8 M
Macro event markers
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
Gross Profit is advancing compared to historical levels. Open Text reported 3.87 Billion in Gross Profit for the previous period. As of March 12th, 2026, Operating Profit Margin is estimated to rise to 0.19, whereas Pretax Profit Margin is moving lower toward 0.05.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.730.635
Fairly Up
Slightly volatile
Profitability analysis for Open Text Corp works best when investors review the financial ratios and fundamental drivers that explain how efficiently the business converts revenue, assets, and operating inputs into earnings. These profitability indicators help investors judge how well Open Text uses its assets to create earnings power and long-term shareholder value.

Open Text Earnings per Share Projection vs Actual

By analyzing Open Text's earnings estimates, investors can diagnose trend shifts in analyst expectations and compare EPS projections across timeframes. EPS is most informative when read together with margin stability and cash-flow conversion. EPS forecast analysis for Open Text Corp is useful, but investors should remember that consensus numbers often reflect a normalized estimate rather than a full reconstruction of every accounting detail. Open Text is projected to generate 1.035825 in earnings per share on 30th of June 2026. Future earnings-per-share expectations are often a key input when investors test valuation assumptions and momentum into the next quarter.
Macro event markers
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes

Open Text Ownership Allocation

The majority of Open Text's outstanding shares are owned by institutional investors. High institutional ownership often reflects the stock's eligibility for passive index funds, which are required to hold positions proportional to index weights regardless of their own investment view. Active managers holding Open Text must also disclose positions above certain thresholds through SEC filings. Institutions collectively hold about 91% of Open Text's shares, insiders own approximately 2%, and the remaining 7% is in public hands.

Open Text Profitability Analysis

The company reported previous year's revenue of 5.3 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

Valuation analysis for Open Text Corp should be treated as an ongoing process rather than a one-time answer, especially when investors are trying to understand how the market is pricing this stock. The practical goal is to understand how new information changes the valuation case, not to defend one static estimate after conditions move.

About Open Text Valuation

Open Text is a large-cap equity in Application Software, Software - Application, Information Technology categories. Intrinsic value assumptions are benchmarked against sector averages. Open Text currently trades at P/E of 87.58, P/B of 1.54, P/S of 1.18.

Unless otherwise specified, financial data for Open Text Corp is derived from periodic company reporting (annual and quarterly where available). Asset-level metrics are computed daily by Macroaxis LLC and refreshed regularly based on asset type. Updates may occur throughout the day.

Investors studying Open Text Corp need valuation context because market price alone does not explain whether the business is being priced aggressively or cautiously. Used properly, valuation helps investors judge whether the current market view looks justified relative to the company's operating evidence.
Share ownership in Open Text Corp is more than a price quote; it is a proportionate claim on the company's equity base and future distributions. Shares outstanding are near 250.6 M.

Open Text Dividends Analysis For Valuation

As of March 12th, 2026, Dividend Yield is estimated to rise to 0.03, though Dividends Paid is likely to advance to about -232.2 M.. Retained Earnings are advancing compared to historical levels. Open Text reported 2.23 Billion in Retained Earnings for the previous period. As of March 12th, 2026, Earnings Yield is estimated to rise to 0.05, whereas Retained Earnings Total Equity is moving lower toward about 1.3 B.
Last ReportedProjected for Next Year
Dividends Paid-244.4 M-232.2 M
Dividend Yield 0.03 0.03
Dividend Payout Ratio 0.55 0.46
Dividend Paid And Capex Coverage Ratio 2.30 2.19
A dividend review of Open Text Corp is useful because distributions affect shareholder return even when they do not change enterprise value directly. A credible dividend profile can support valuation confidence, while an unstable one may call for more caution around expected return.

Open Text Growth Indicators

A growth thesis around Open Text Corp should be tested carefully because strong valuation often reflects confidence that the business can keep compounding faster than peers. Used properly, growth analysis helps investors separate durable compounding from optimism that may already be fully priced in.
Common Stock Shares Outstanding263.6 M
Quarterly Earnings Growth Y O Y-0.239
Forward Price Earnings5.5402

Open Text Current Valuation Indicators

Valuation work on Open Text Corp becomes more reliable when investors compare several lenses at once, including market value, enterprise value. revenue scale, and expected cash-flow durability. The better valuation questions are comparative: what is the market paying for each dollar of revenue, profit, and asset base, and is that premium justified?

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