Open Text Corporation

NasdaqGS:OTEX Stock Report

Market Cap: US$7.4b

Open Text Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair 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.

Below Fair Value: OTEX ($28.42) is trading below our estimate of fair value ($100.68)

Significantly Below Fair Value: OTEX is trading below fair 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 Ratio15.9x
EarningsUS$468.56m
Market CapUS$7.42b

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 Average121.5x
SPSC SPS Commerce
87.8x12.0%US$7.0b
CCCS CCC Intelligent Solutions Holdings
158.7x44.1%US$7.5b
APPF AppFolio
67.5x17.2%US$9.0b
ESTC Elastic
172.2x-4.4%US$10.5b
OTEX Open Text
15.9x18.6%US$7.4b

Price-To-Earnings vs Peers: OTEX is good value based on its Price-To-Earnings Ratio (15.9x) compared to the peer average (121.5x).

Price to Earnings Ratio vs Industry

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

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
YXT YXT.COM Group Holding
2.3xn/aUS$156.80m
NISN Nisun International Enterprise Development Group
2xn/aUS$28.38m
NXTT Next Technology Holding
0.7xn/aUS$18.00m
ULY Urgent.ly
0.07x-13.0%US$6.48m
OTEX 15.9xIndustry Avg. 40.2xNo. of Companies10PE020406080100+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: OTEX is good value based on its Price-To-Earnings Ratio (15.9x) compared to the US Software industry average (40.7x).

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 Ratio15.9x
Fair PE Ratio35.2x

Price-To-Earnings vs Fair Ratio: OTEX is good value based on its Price-To-Earnings Ratio (15.9x) compared to the estimated Fair Price-To-Earnings Ratio (35.2x).

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
CurrentUS$28.42
US$35.38
+24.5%
11.5%US$48.00US$32.00n/a13
Dec ’25US$30.43
US$35.67
+17.2%
11.6%US$48.00US$32.00n/a12
Nov ’25US$28.98
US$36.45
+25.8%
12.7%US$48.00US$32.00n/a11
Oct ’25US$32.82
US$39.00
+18.8%
11.4%US$48.00US$33.00n/a11
Sep ’25US$31.82
US$38.36
+20.6%
12.9%US$48.00US$32.00n/a11
Aug ’25US$30.49
US$39.64
+30.0%
11.3%US$48.00US$32.00n/a11
Jul ’25US$30.08
US$41.00
+36.3%
12.2%US$50.00US$32.00n/a11
Jun ’25US$29.25
US$41.68
+42.5%
9.8%US$50.00US$37.00n/a11
May ’25US$35.35
US$50.17
+41.9%
10.5%US$60.00US$42.00n/a12
Apr ’25US$38.41
US$50.17
+30.6%
10.5%US$60.00US$42.00n/a12
Mar ’25US$39.26
US$50.33
+28.2%
10.0%US$60.00US$44.00n/a12
Feb ’25US$44.09
US$49.36
+12.0%
12.0%US$60.00US$38.00n/a11
Jan ’25US$42.02
US$49.36
+17.5%
12.0%US$60.00US$38.00n/a11
Dec ’24US$40.73
US$49.36
+21.2%
12.0%US$60.00US$38.00US$30.4311
Nov ’24US$33.48
US$48.20
+44.0%
13.6%US$60.00US$38.00US$28.9810
Oct ’24US$35.10
US$49.70
+41.6%
10.3%US$60.00US$42.00US$32.8210
Sep ’24US$40.46
US$49.70
+22.8%
10.3%US$60.00US$42.00US$31.8210
Aug ’24US$42.44
US$48.80
+15.0%
10.4%US$60.00US$41.00US$30.4910
Jul ’24US$41.55
US$48.30
+16.2%
11.2%US$60.00US$41.00US$30.0810
Jun ’24US$41.63
US$48.00
+15.3%
11.9%US$60.00US$41.00US$29.2510
May ’24US$37.78
US$45.00
+19.1%
13.9%US$60.00US$39.00US$35.3510
Apr ’24US$38.55
US$44.50
+15.4%
15.3%US$60.00US$35.00US$38.4110
Mar ’24US$34.24
US$44.88
+31.1%
16.7%US$60.00US$35.00US$39.268
Feb ’24US$32.99
US$42.88
+30.0%
20.5%US$60.00US$33.00US$44.098
Jan ’24US$29.64
US$44.17
+49.0%
22.4%US$60.00US$30.00US$42.029
Dec ’23US$29.36
US$45.45
+54.8%
22.4%US$60.00US$30.00US$40.7310

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 23:12
End of Day Share Price 2024/12/30 00:00
Earnings2024/09/30
Annual Earnings2024/06/30

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 here.

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 .

Analyst Sources

Open Text Corporation is covered by 32 analysts. 13 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
Raimo LenschowBarclays
Phillip HuangBarclays