Open Text

Legacy Decline And Acquisition Risks Will Shadow Future Value

AnalystLowTarget

Not Invested

Community Contributor

Published

22 Jun 25

Updated

16 Dec 25

Views

n/a

AnalystLowTarget's Fair Value

n/a

-10.3%

-1.3%

-10.3%

-1.3%

You can edit this narrative until Dec 17 8:05 PM. Then, changes will post as Updates.

Author's Valuation

US$3531.5% undervalued

AnalystLowTarget Fair Value

Narrative

Updates1

Shared on 16 Dec 25

Fair value Increased 13%

OTEX: AI Expansion And Margin Execution Will Drive Balanced Risk Reward Outlook

The analyst price target for OpenText has increased to $35 from $31, as analysts factor in recent target hikes across the Street that reflect improved profit margin expectations and a slightly lower forward valuation multiple, despite modestly softer growth assumptions. Analyst Commentary Recent Street research reflects a more balanced tone on OpenText, with higher price targets tempered by a clear emphasis on execution and growth risks.

AnalystLowTarget Fair Value

US$35

31.5% undervalued

Future estimation in

Growth p.a.

Decrease

Increase

Forecast revenue growth rate

1.14%

Historical revenue growth rate

12.46%

Software revenue growth rate

1.26%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

Decrease

Increase

Current discount rate

10.84%

Calculation

US$982.98m

Earnings '28

10.12x

PE Ratio '28

US$9.95b

Market Cap '28

US$9.95b

Market Cap '28

214.25m

No. shares '28

US$46.44

Share Price '28

US$46.44 Share Price '28

Discounted to 2025 @ 9.93% p.a.

US$34.96

Fair Value '25