Open Text Corporation (OTEX) is a publicly traded company in the Technology — Software - Application industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Open Text Corporation specializes in the creation, development, and distribution of advanced software and comprehensive solutions designed for information management. Its extensive portfolio encompasses vital areas such as content services and a sophisticated business network that facilitates data management both internally and across external boundaries.
Is Open Text Corporation stock overvalued or undervalued in 2026?
Open Text Corporation (OTEX) trades at 6.0× earnings (P/E), below the median of the 314 technology companies over $2bn in Kaplio's universe. At the decade median (34.6×) $156 (+477 %); at its sector median (32.0×) $144 (+433 %). Note: these prices use the last twelve months' earnings, and analysts expect them to fall 13 % in 2027; at this price, its 2027 P/E would be 6.9×.
Kaplio overview: Open Text Corporation
Market cap $7B · 52 weeks $20 – $40 (29 % below the high) · P/E 6.0× · 2027 expected P/E 6.9× · Dividend 4.2 % · 11 years rising · Next earnings November 5, 2026 · expected EPS $0.94 · Closing price, Oct 29 · accounts published Aug 6.
- Valuation: P/E 6.0× (cheap).
- Business: ROIC 14 % (fair).
- Balance sheet: Net debt/EBITDA 3.4× (fragile).
- Earnings: 8 of 8 (on track).
Analysts expect earnings per share to fall 13 % in 2027: at this price, its 2027 P/E would be 6.9×.
What would it be worth at its usual multiples?
At the decade median (34.6×) $156 (+477 %); at its sector median (32.0×) $144 (+433 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
Note: these prices use the last twelve months' earnings, and analysts expect them to fall 13 % in 2027; at this price, its 2027 P/E would be 6.9×.
What matters in technology: 3 of 8 pass
- 3y revenue growth 7.9 %, fails.
- Rule of 40 (SaaS only) 23, fails.
- FCF / Revenue 15.4 %, fails.
- Net debt / EBITDA 3.4×, fails.
- ROIC 14.0 %, borderline.
- Gross margin 73.7 %, passes, near the threshold.
- SBC / Revenue 1.5 %, passes.
- EV/EBITDA vs own 5y 3.7×, passes.
Against its peers (reference peers) — Open Text Corporation: P/E 6.0×; EV/EBITDA 3.7×; ROIC 14.0 %; $6.6B. Commvault Systems, Inc. (P/E 109×; EV/EBITDA 53.1×; ROIC 6.1 %; $7.1B), Tenable Holdings, Inc. (P/E —; EV/EBITDA 43.3×; ROIC 2.2 %; $5.7B), BlackBerry Limited (P/E 72.2×; EV/EBITDA 46.8×; ROIC 7.2 %; $5.4B).
Expensive or cheap against its last 8 years?
P/E at each close: today 6.0× · median 34.6× · minimum 6.0× · maximum 64.3× · cheap below 20.8× · expensive above 43.8×. It has been cheaper than today only 0% of the time over its last 8 years.
Dividend
solid · Yield 4.2 % ($1.08 per ADS in 2026) · Years raising it ≥ 11 · 5-year growth +7 % a year · Free cash flow coverage 2.9× · With $1,000 invested today you'd collect $41.90 a year ($3.49 a month).
Profitability
| Return on Equity | 28.29% |
| Return on Invested Capital | 13.98% |
| Return on Assets | 8.62% |
| Gross Margin | 73.55% |
| Operating Margin | 20.99% |
| Net Margin | 12.36% |
Financial Health
| Debt / Equity | 1.49 |
| Current Ratio | 0.81 |
| Piotroski F-Score | 9 |
| Altman Z-Score | 1.21 |
Price Performance
| 1 month | +21.60% |
| 3 months | +7.06% |
| Year-to-date | -16.73% |
| 1 year | -28.87% |
| 3 years | -18.46% |
| 5 years | -46.12% |
| 10 years | -12.60% |
Dividend History
Paid in the last 12 months: $1.1050 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-09-04 | $0.2800 |
| 2026-06-05 | $0.2750 |
| 2026-03-06 | $0.2750 |
| 2025-12-05 | $0.2750 |
| 2025-09-05 | $0.2750 |
| 2025-06-06 | $0.2625 |
| 2025-03-07 | $0.2625 |
| 2024-11-29 | $0.2625 |
| 2024-08-30 | $0.2625 |
| 2024-05-31 | $0.2500 |
Amounts adjusted for stock splits.
Related companies: CHKP · AKAM · CVLT · VRNS · TENB · BB
Explore sector: Technology · Software - Application
More sections of OTEX: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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