Open Text Corp (OTEX) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Open Text Corp stock $73.90, price $24.85, upside +197.4%, quality 66 out of 100. Rating: strongly undervalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range $19.78 – $46.88 · fair‑value band $33.97 – $92.75 · the $24.85 price screens below the $73.90 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
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Open Text Corporation designs, develops, markets, and sells information management software and solutions in North, Central, and South America, Europe, the Middle East, Africa, Australia, Japan, Singapore, India, and China.
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The company offers cloud services and subscriptions, including software as a service offerings, application programming interfaces and data services, and private, public, and off-cloud products, such as hosted services and managed service arrangements; foundational platform of technology services; and packaged business applications, as well as managed services and outsourced B2B integration solutions, including program implementation, operational management, and customer support.
It also provides fees earned from the licensing of software products to customers; and consulting and learning services, such as implementation, training, and integration of licensed product offerings into the customer's systems.
In addition, the company offers various business clouds, including content, cybersecurity, DevOps, business network, observability and service management, and analytics; and artificial intelligence, software developers API, and other related services.
It has strategic partnerships with SAP SE, Google Cloud, Amazon Web Services, Microsoft Corporation, Oracle Corporation, and Salesforce.com Corporation, as well as global systems integrators, including Accenture plc, Capgemini Technology Services SAS, Deloitte Consulting LLP, Hewlett Packard Enterprises, and Tata Consultancy Services.
The company serves G10K organizations, enterprise companies, public sector agencies, mid-market companies, small and medium-sized businesses, and direct consumers. Open Text Corporation was incorporated in 1991 and is headquartered in Waterloo, Canada.
Stock analysis
Open Text Corp (OTEX) currently trades at $24.85, while our model-based Fair Value estimate is $73.90, implying the stock looks roughly 66% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $76.31 per share, and 19 of the 24 models we run sit above the $24.85 price.
Bear case: the Dividend Discount group reads lowest at $17.54, and 5 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: $33.97 (bear) to $92.75 (bull), the price of $24.85 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 66/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Open Text Corp reported revenue of $5.2B in FY2026 versus $3.4B in FY2022, a compound +11.2%/yr. Reported net income was $643M in FY2026, compounding +13.3%/yr from FY2022.
Key figures
Market cap $6.2B Mid · P/E ratio 9.4 · P/S ratio 1.19 · EPS (TTM) $2.64 · Dividend yield 4.4% · Net margin 12.5% · Return on equity 16.2% · Return on assets (EBIT) 6.7% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 61 out of 100 (low confidence).
What moves the price
The share trades about 28% below its 52-week high and 26% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at 10% fair-value upside, at 197%, OTEX screens cheaper than that median.
Fair Value models
Bear$33.97Fair Value $73.90Bull$92.75
Price $24.85 · Upside +197.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 4 months old). Earnings retained since then ($0.5527 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.87/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+1.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.4%
Start year 2021 (pandemic). Over 10 years: +10.9% a year
Revenue growth 30 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+23.2%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: EBIT basis.
≈ +16.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+11.6%
Dividend (yield on the price)4.4%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.17.0% vs 8.0%, picking up
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.22% → 21%
Pace: the 5-year rate starts in 2021 (pandemic)
⚠ Rate on operating basis: 2026 sits 56% above its own trend.
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+2.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+1.1%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +0.1% a year for the price and −1.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (82 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Core cloud and AI momentum forms the main strength while legacy revenue declines combined with debt exceeding equity remain the central weakness.
Main risk: Microsoft could bundle more content management and AI features into its M365 and Copilot suites, reducing the need for OpenText's standalone enterprise content management solutions and pressuring prices and margins
Bull case: OpenText could deepen integrations with Microsoft ecosystems and leverage its governance strengths to become a complementary layer that customers adopt alongside M365
Bear case: If Microsoft and cloud-native rivals capture more of the content services market through bundling and lower-cost offerings, OpenText might see slower cloud growth and sustained margin pressure from its sales investments
OpenText's core cloud revenue grew over 11 percent in the quarter, led by strong Content Cloud performance, yet total revenue fell due to non-core declines and earlier divestitures. The company is finalizing a multiyear growth plan from its enterprise assessment for the February Investor Day while addressing sales execution shortfalls in some core areas. Will the accelerating cloud and AI momentum deliver enough to offset legacy headwinds and higher reinvestments?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 630 stocks
Beats the industry median on 12/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score66 · Above median
Fair Value upside+197.4% · Top 25%
Profitability
Return on equity (12 months)16.2% · Top 25%
Return on assets4.9% · Above median
Net margin (12 months)12.5% · Above median
Operating margin (12 months)23.0% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)−4.0% · Bottom 25%
Dividend yield (12 months)4.4% · Top 25%
Balance sheet
Debt / equity1.43× · Highest 25%
Valuation Multiplesvs Software - Application median · lower = cheaper
P/E (12 months)9.4× · Cheapest 25%
P/B1.54× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Open Text Corp Fair Value". https://www.fairvalue-calculator.com/stock/OTEX
Frequently asked questions
Is Open Text Corp (OTEX) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of $73.90 versus a price of $24.85, about +197% upside (undervalued).
What is the fair value of OTEX?
Our model-based fair value for Open Text Corp is $73.90 (as of Nov 7, 2026), built from audited fundamentals. The current price: $24.85.
What is the quality score of OTEX?
Open Text Corp has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Open Text Corp (OTEX)?
Our model-based price target is the fair value of $73.90 (as of Nov 7, 2026) from 24 valuation models. Cautious scenario $33.97, optimistic scenario $92.75. It is a calculation from audited fundamentals, not an analyst target.
What is the Open Text Corp stock forecast for 2026?
Our models put fair value at $73.90, about +197% upside versus a price of $24.85 (undervalued). Cautious scenario $33.97, optimistic scenario $92.75. The calculation is refreshed regularly with new filings.
What is the revenue of Open Text Corp (OTEX)?
Open Text Corp reported trailing-twelve-month revenue of about $5.2B (latest available figure, as of Nov 7, 2026).
Does Open Text Corp pay a dividend?
Open Text Corp currently shows a dividend yield of 4.43% relative to its recent price (as of Nov 7, 2026).
How much is the dividend of Open Text Corp (OTEX) and when is the ex-dividend date?
Open Text Corp pays a dividend of $1.10 per share a year, a dividend yield of 4.4%. The last ex-dividend date was Sep 4, 2026. A dividend has been paid every year since at least 2013. The payout ratio is 41.7% of earnings. Free cash flow covers the dividend 3.03 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Open Text Corp (OTEX)?
For today's price to be fair in a discounted-cash-flow model, Open Text Corp would have to grow free cash flow by +2.5 % per year for five years (discount rate 9.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.4 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of OTEX use?
Our models discount Open Text Corp at 9.7 %: a base by market capitalisation (mid), damped by beta 0.99, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Open Text Corp that is +2.5 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.7 %) and the same formula as our fair value.
How much growth has Open Text Corp (OTEX) delivered so far?
Over the past 5 years revenue at Open Text Corp grew +8.4 % a year. The price currently implies free-cash-flow growth of +2.5 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Open Text Corp (OTEX) growing?
The median revenue growth in the sector is +11.5 % a year. That is the yardstick for the growth priced into Open Text Corp (+2.5 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Open Text Corp (OTEX)?
The free-cash-flow yield on the price is 13.03 %: that much free cash flow Open Text Corp produces per unit of market value. When it exceeds the discount rate of our models (9.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Open Text Corp (OTEX)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Open Text Corp it is $73.90 per share (as of Nov 7, 2026), against a price of $24.85. It is the blended result of 24 valuation models in 7 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings).
Is Open Text Corp stock overvalued or undervalued in 2026?
As of Nov 7, 2026, OTEX trades below its calculated fair value: price $24.85, fair value $73.90, a gap of about +197% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of OTEX?
No. The price is what the market pays today ($24.85); the fair value is what the company's own numbers justify ($73.90). For Open Text Corp the two are $49.05 per share apart. That gap is exactly why we show both numbers side by side.
How much is Open Text Corp worth?
The market values Open Text Corp at about $6.2B (market capitalisation, as of Nov 7, 2026). Per share that is $24.85; our models calculate a fair value of $73.90 per share.
What do the bullish and bearish scenarios say about OTEX?
Our models span a range for Open Text Corp: cautious scenario $33.97, base $73.90, optimistic $92.75 per share (as of Nov 7, 2026, price $24.85). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of OTEX?
Open Text Corp trades at a price-to-earnings ratio of 9.4 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $73.90 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings: 32.4. Other multiples: PEG 1.0, P/B 1.5, P/S 1.2, EV/EBITDA 6.8.
What is the PEG ratio of OTEX?
The PEG ratio of Open Text Corp is 1.02 (P/E divided by earnings growth, as of Nov 7, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Open Text Corp (OTEX)?
Balance-sheet figures for Open Text Corp (as of Nov 7, 2026): return on equity 16.2%, debt of 1.43 per unit of equity. They feed the Quality Score of 66/100, which measures business quality independently of the share price.
How far is OTEX from its 52-week high?
Open Text Corp trades at $24.85, about 28% below its 52-week high of $34.50 and 26% above the low of $19.78 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $73.90 is for.
Which stocks are comparable to Open Text Corp?
From the same area (Technology) we also value SAP SE, Salesforce, Inc, Shopify Inc, ServiceNow, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Open Text Corp stock attractive at the current price?
The data as of Nov 7, 2026: price $24.85, calculated fair value $73.90 (+197%), Quality Score 66/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of OTEX calculated?
We run Open Text Corp through 24 models from 7 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $73.90 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Open Text Corp currently trades 66% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Open Text Corp (OTEX)?
The closing price on Nov 6, 2026 was $24.85. Our model-based fair value is $73.90, about +197% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Open Text Corp right now?
The price is below even our cautious bear case ($33.97). The market is more pessimistic than our downside scenario. The model range is unusually wide ($33.97 to $92.75). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality.
Key figures of Open Text Corp
How large is the market capitalisation of Open Text Corp (OTEX)?
The market capitalisation of Open Text Corp is $6.2B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Open Text Corp (OTEX)?
The price-to-sales ratio of Open Text Corp is 1.19 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Open Text Corp (OTEX)?
Earnings per share at Open Text Corp are $2.64 (price ÷ EPS = P/E 9.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Open Text Corp (OTEX)?
The dividend yield of Open Text Corp is 4.4% (payout 41.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Open Text Corp (OTEX)?
The net margin of Open Text Corp is 12.5% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Open Text Corp (OTEX)?
The return on equity (ROE) of Open Text Corp is 16.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Open Text Corp (OTEX)?
On an EBIT basis the return on assets of Open Text Corp is 6.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Open Text Corp (OTEX)?
The operating margin of Open Text Corp is 23.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Open Text Corp (OTEX)?
Revenue at Open Text Corp is growing −4.0% versus a year earlier (3y avg +5.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Open Text Corp (OTEX)?
Earnings per share at Open Text Corp are growing +10.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Open Text Corp (OTEX) carry?
The net debt of Open Text Corp is $5.0B (fiscal year 2026, ≈ 6.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 7, 2026