Open Text Corporation

TSX:OTEX Stock Report

Market Cap: CA$8.2b

Open Text Valuation

Is OTEX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of OTEX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: OTEX (CA$33.49) is trading below our estimate of future cash flow value (CA$68.31)

Significantly Below Future Cash Flow Value: OTEX is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OTEX?

Key metric: As OTEX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for OTEX. This is calculated by dividing OTEX's market cap by their current earnings.
What is OTEX's PE Ratio?
PE Ratio14x
EarningsUS$436.35m
Market CapUS$5.98b

Price to Earnings Ratio vs Peers

How does OTEX's PE Ratio compare to its peers?

The above table shows the PE ratio for OTEX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average81.1x
DSG Descartes Systems Group
35.7x15.61%CA$7.5b
TOI Topicus.com
178.6x85.14%CA$7.2b
KXS Kinaxis
71.2x32.77%CA$3.3b
LMN Lumine Group
38.9x-17.52%CA$4.9b
OTEX Open Text
14x19.75%CA$6.0b

Price-To-Earnings vs Peers: OTEX is good value based on its Price-To-Earnings Ratio (14x) compared to the peer average (81.1x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does OTEX's PE Ratio compare vs other companies in the CA Software Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ZOMD Zoomd Technologies
4.3x-7.46%US$73.68m
GRDI Griid Infrastructure
3.3xn/aUS$70.78m
IDLE.X Generative AI Solutions
0.08xn/aUS$8.15m
LIQD Liquid Meta Capital Holdings
2.4xn/aUS$2.74m
OTEX 14.0xIndustry Avg. 35.6xNo. of Companies7PE020406080100+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: OTEX is good value based on its Price-To-Earnings Ratio (14x) compared to the Canadian Software industry average (35.6x).

Price to Earnings Ratio vs Fair Ratio

What is OTEX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OTEX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14x
Fair PE Ratio33.3x

Price-To-Earnings vs Fair Ratio: OTEX is good value based on its Price-To-Earnings Ratio (14x) compared to the estimated Fair Price-To-Earnings Ratio (33.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst OTEX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$33.49
CA$45.28
+35.20%
24.40%CA$68.42CA$35.58n/a11
Feb ’27CA$34.78
CA$52.72
+51.58%
16.16%CA$68.08CA$37.98n/a11
Jan ’27CA$44.70
CA$55.14
+23.37%
12.26%CA$68.46CA$47.92n/a11
Dec ’26CA$47.21
CA$57.05
+20.83%
11.90%CA$70.51CA$49.35n/a11
Nov ’26CA$53.81
CA$55.10
+2.39%
14.86%CA$69.94CA$44.76n/a11
Oct ’26CA$51.77
CA$52.14
+0.72%
18.42%CA$69.71CA$43.22n/a10
Sep ’26CA$45.42
CA$47.35
+4.26%
13.92%CA$66.27CA$41.42n/a10
Aug ’26CA$39.15
CA$43.86
+12.02%
17.68%CA$65.78CA$38.37n/a10
Jul ’26CA$39.79
CA$44.61
+12.11%
16.92%CA$65.88CA$38.43n/a10
Jun ’26CA$38.86
CA$44.61
+14.79%
16.92%CA$65.88CA$38.43n/a10
May ’26CA$35.79
CA$45.27
+26.48%
16.47%CA$66.45CA$38.76n/a10
Apr ’26CA$36.29
CA$50.65
+39.58%
12.94%CA$69.29CA$44.75n/a11
Mar ’26CA$37.36
CA$50.94
+36.35%
12.63%CA$69.32CA$44.77n/a11
Feb ’26CA$42.76
CA$51.14
+19.59%
12.40%CA$68.82CA$43.01CA$34.7812
Jan ’26CA$40.68
CA$50.64
+24.49%
11.55%CA$68.70CA$45.80CA$44.7013
Dec ’25CA$42.64
CA$49.94
+17.12%
11.58%CA$67.21CA$44.81CA$47.2112
Nov ’25CA$40.40
CA$50.88
+25.93%
12.67%CA$66.99CA$44.66CA$53.8111
Oct ’25CA$44.30
CA$52.59
+18.71%
11.36%CA$64.73CA$44.50CA$51.7711
Sep ’25CA$42.88
CA$53.03
+23.68%
12.93%CA$66.35CA$44.24CA$45.4211
Aug ’25CA$42.27
CA$54.80
+29.64%
11.30%CA$66.36CA$44.24CA$39.1511
Jul ’25CA$41.08
CA$56.17
+36.74%
12.17%CA$68.50CA$43.84CA$39.7911
Jun ’25CA$39.88
CA$56.96
+42.83%
9.84%CA$68.33CA$50.56CA$38.8611
May ’25CA$48.67
CA$68.11
+39.95%
10.54%CA$81.47CA$57.03CA$35.7912
Apr ’25CA$52.12
CA$68.28
+31.01%
10.54%CA$81.67CA$57.17CA$36.2912
Mar ’25CA$53.24
CA$68.10
+27.92%
10.04%CA$81.18CA$59.54CA$37.3612
Feb ’25CA$59.04
CA$66.62
+12.84%
12.01%CA$80.98CA$51.29CA$42.7611
CA$45.27
Fair Value
26.0% undervalued intrinsic discount
11
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/02/25 23:10
End of Day Share Price 2026/02/25 00:00
Earnings2025/12/31
Annual Earnings2025/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Open Text Corporation is covered by 25 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Kadambari DaptardarAccountability Research Corporation
Richard TseATB Cormark Historical (Cormark Securities)
Raimo LenschowBarclays