Open Text Corporation (OTEX) 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

+160.0%

$70.07

vs $26.95 price

Levered DCF

$46.59

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

1.81

Grey zone

Rating

A+

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	8.59×	17.59×	17.59×	74.2×	26.28×	43.05×	49.98×	39.02×
P/B	1.37×	1.96×	1.95×	2.79×	2.55×	3.38×	2.87×	2.86×
P/S	1.05×	1.49×	1.43×	2.48×	2.99×	3.95×	3.75×	3.83×
EV / EBITDA	7.18×	8.78×	6.47×	15.14×	11.83×	12.58×	14.38×	12.11×
Gross margin	73.7%	72.3%	62.9%	61.0%	60.9%	60.5%	57.8%	57.5%
Operating margin	20.6%	20.1%	17.7%	15.4%	19.8%	21.8%	19.5%	21.1%
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	3.37×	2.75×	1.79×	1.82×	4.19×	4.92×	3.77×	4.4×
Dividend yield	4.9%	3.5%	3.3%	2.3%	2.3%	1.5%	1.6%	1.5%
Payout ratio	41.7%	62.3%	58.1%	170.8%	60.9%	65.4%	81.7%	58.4%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	16.0%	11.1%	11.0%	3.8%	9.7%	7.9%	5.8%	7.4%
Return on invested capital	7.7%	8.4%	5.6%	3.3%	6.0%	4.4%	4.5%	5.7%
Return on assets	4.9%	3.2%	3.2%	0.9%	3.8%	3.3%	2.3%	3.6%
Free cash flow yield	14.6%	8.9%	9.9%	5.8%	8.7%	5.9%	7.7%	7.3%
Earnings yield	11.7%	5.7%	5.6%	1.4%	3.8%	2.3%	2.0%	2.6%
Enterprise value	$10.5B	$13.2B	$13.6B	$19.2B	$13B	$16.1B	$14.3B	$12.8B
Net debt / EBITDA	3.42×	3.66×	2.58×	6.3×	2.52×	1.77×	2.8×	1.58×
Cash conversion cycle (days)	31	25	22	33	19	36	55	52