Open Text Corporation (OTEX.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+577.7%

CA$251.71

vs CA$37.14 price

Levered DCF

CA$125.92

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

1.29

Distress zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	8.57×	17.19×	17.57×	74.23×	26.25×	43×	49.95×	38.95×
P/B	1.37×	1.96×	1.94×	2.79×	2.54×	3.37×	2.87×	2.86×
P/S	1.05×	1.49×	1.41×	2.51×	2.94×	4.08×	3.7×	3.87×
EV / EBITDA	5.79×	8.78×	6.45×	15.26×	11.02×	12.13×	14.38×	12.17×
Gross margin	73.7%	72.3%	72.6%	70.6%	69.6%	69.4%	67.7%	67.6%
Operating margin	23.2%	17.3%	15.4%	11.5%	18.5%	21.9%	16.2%	19.8%
Net margin	12.3%	8.4%	8.1%	3.4%	11.4%	9.2%	7.5%	10.0%
Current ratio	0.81×	0.8×	0.81×	0.71×	1.56×	1.62×	1.25×	1.54×
Debt / equity	1.49×	1.69×	1.59×	2.3×	1.11×	0.94×	1.12×	0.67×
Interest coverage	3.45×	2.37×	1.57×	1.35×	3.97×	4.77×	3.18×	4.15×
Dividend yield	4.9%	3.5%	3.3%	2.3%	2.3%	1.6%	1.6%	1.5%
Payout ratio	41.7%	62.3%	57.5%	174.4%	58.8%	70.3%	79.4%	59.1%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	16.0%	11.1%	11.1%	3.7%	9.9%	7.6%	5.8%	7.4%
Return on invested capital	8.6%	7.2%	4.9%	2.5%	5.7%	4.3%	3.8%	5.3%
Return on assets	4.9%	3.2%	3.3%	0.9%	3.9%	3.2%	2.3%	3.6%
Free cash flow yield	14.7%	8.9%	9.9%	5.8%	8.7%	5.9%	7.7%	7.3%
Earnings yield	11.7%	5.7%	5.7%	1.3%	3.9%	2.2%	2.0%	2.6%
Enterprise value	CA$10.5B	CA$13.2B	CA$13.6B	CA$19.2B	CA$13B	CA$16.1B	CA$14.3B	CA$12.8B
Net debt / EBITDA	2.76×	3.66×	2.57×	6.35×	2.35×	1.71×	2.8×	1.6×
Cash conversion cycle (days)	31	25	13	22	10	33	50	48