OTEX Relative Valuation
OTEX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, OTEX is overvalued; if below, it's undervalued.
Historical Valuation
Open Text Corp (OTEX) is now in the Undervalued zone, suggesting that its current forward PE ratio of 8.08 is considered Undervalued compared with the five-year average of 10.58. The fair price of Open Text Corp (OTEX) is between 50.05 to 69.82 according to relative valuation methord. Compared to the current price of 33.77 USD , Open Text Corp is Undervalued By 32.53%.
Relative Value
Fair Zone
50.05-69.82
Current Price：33.77
32.53%
Undervalued
8.08
PE
1Y
3Y
5Y
Trailing
Forward
7.48
EV/EBITDA
Open Text Corp. (OTEX) has a current EV/EBITDA of 7.48. The 5-year average EV/EBITDA is 9.17. The thresholds are as follows: Strongly Undervalued below 5.17, Undervalued between 5.17 and 7.17, Fairly Valued between 11.17 and 7.17, Overvalued between 11.17 and 13.17, and Strongly Overvalued above 13.17. The current Forward EV/EBITDA of 7.48 falls within the Historic Trend Line -Fairly Valued range.
8.01
EV/EBIT
Open Text Corp. (OTEX) has a current EV/EBIT of 8.01. The 5-year average EV/EBIT is 9.81. The thresholds are as follows: Strongly Undervalued below 5.57, Undervalued between 5.57 and 7.69, Fairly Valued between 11.93 and 7.69, Overvalued between 11.93 and 14.04, and Strongly Overvalued above 14.04. The current Forward EV/EBIT of 8.01 falls within the Historic Trend Line -Fairly Valued range.
1.59
PS
Open Text Corp. (OTEX) has a current PS of 1.59. The 5-year average PS is 2.31. The thresholds are as follows: Strongly Undervalued below 0.40, Undervalued between 0.40 and 1.35, Fairly Valued between 3.26 and 1.35, Overvalued between 3.26 and 4.22, and Strongly Overvalued above 4.22. The current Forward PS of 1.59 falls within the Historic Trend Line -Fairly Valued range.
7.03
P/OCF
Open Text Corp. (OTEX) has a current P/OCF of 7.03. The 5-year average P/OCF is 11.66. The thresholds are as follows: Strongly Undervalued below 4.18, Undervalued between 4.18 and 7.92, Fairly Valued between 15.40 and 7.92, Overvalued between 15.40 and 19.14, and Strongly Overvalued above 19.14. The current Forward P/OCF of 7.03 falls within the Undervalued range.
8.27
P/FCF
Open Text Corp. (OTEX) has a current P/FCF of 8.27. The 5-year average P/FCF is 13.63. The thresholds are as follows: Strongly Undervalued below 3.66, Undervalued between 3.66 and 8.65, Fairly Valued between 18.62 and 8.65, Overvalued between 18.62 and 23.61, and Strongly Overvalued above 23.61. The current Forward P/FCF of 8.27 falls within the Undervalued range.
Open Text Corp (OTEX) has a current Price-to-Book (P/B) ratio of 2.12. Compared to its 3-year average P/B ratio of 2.19 , the current P/B ratio is approximately -3.43% higher. Relative to its 5-year average P/B ratio of 2.47, the current P/B ratio is about -14.42% higher. Open Text Corp (OTEX) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 8.35%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 8.02% , the current FCF yield is about -100.00% lower.
2.12
P/B
Median3y
2.19
Median5y
2.47
10.93
FCF Yield
Median3y
8.35
Median5y
8.02
Competitors Valuation Multiple
The average P/S ratio for OTEX's competitors is , providing a benchmark for relative valuation. Open Text Corp Corp (OTEX) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 1.51%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of OTEX increased by 20.47% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 6.65 to 11.39.
The secondary factor is the Revenue Growth, contributed 1.51%to the performance.
Overall, the performance of OTEX in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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