Open Text Valuation
| OTEX Stock | USD 36.09 0.64 1.81% |
At this time, the company appears to be undervalued. Open Text Corp holds a recent Real Value of $42.94 per share. The prevailing price of the company is $36.09. Our model determines the value of Open Text Corp from analyzing the company fundamentals such as Shares Outstanding of 267.64 M, operating margin of 0.20 %, and Return On Equity of 0.0313 as well as examining its technical indicators and probability of bankruptcy. In general, most investors support acquiring undervalued entities and dropping overvalued entities since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Open Text's valuation include:
Price Book 2.3583 | Enterprise Value 17.2 B | Enterprise Value Ebitda 11.1723 | Price Sales 1.6803 | Forward PE 7.4963 |
Undervalued
Today
Please note that Open Text's price fluctuation is very steady at this time. Calculation of the real value of Open Text Corp is based on 3 months time horizon. Increasing Open Text's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Open Text Corp is useful when determining the fair value of the Open stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Open Text. Since Open Text is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Open Stock. However, Open Text's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 36.09 | Real 42.94 | Target 48.2 | Hype 36.28 |
The real value of Open Stock, also known as its intrinsic value, is the underlying worth of Open Text Corp Company, which is reflected in its stock price. It is based on Open Text's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Open Text's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Open Text's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Open Text Corp helps investors to forecast how Open stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Open Text more accurately as focusing exclusively on Open Text's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Open Text's intrinsic value based on its ongoing forecasts of Open Text's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Open Text's closest peers. When choosing an evaluation method for Open Text Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Open Text Investments |
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Open Valuation Trend
Knowing Open Text's actual value is paramount for traders to make sound investment determinations. Open Text's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Open Text's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Open Text's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Open Market Cap
Open Text Corp is regarded fourth in market capitalization category among related companies. Market capitalization of Information Technology industry is now estimated at about 300.41 Billion. Open Text holds roughly 9.49 Billion in market capitalization claiming about 3% of equities under Information Technology industry.Open Text Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Open Text's current stock value. Our valuation model uses many indicators to compare Open Text value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Open Text competition to find correlations between indicators driving Open Text's intrinsic value. More Info.Open Text Corp is regarded third in price to earning category among related companies. It is regarded fifth in price to book category among related companies fabricating about 0.03 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Open Text Corp is roughly 37.14 . Price To Book Ratio is likely to drop to 3.19 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Open Text by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Open Text's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Open Text's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Open Text's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Open Text and how it compares across the competition.
About Open Text Valuation
The stock valuation mechanism determines the current worth of Open Text Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Open Text Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Open Text Corp based exclusively on its fundamental and basic technical indicators. By analyzing Open Text's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Open Text's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Open Text. We calculate exposure to Open Text's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Open Text's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 3.6 B | 3.8 B | |
| Pretax Profit Margin | 0.04 | 0.04 | |
| Operating Profit Margin | 0.10 | 0.06 | |
| Net Profit Margin | 0.03 | 0.03 | |
| Gross Profit Margin | 0.81 | 0.79 |
8 Steps to conduct Open Text's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Open Text's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Open Text's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Open Text's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Open Text's revenue streams: Identify Open Text's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Open Text's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Open Text's growth potential: Evaluate Open Text's management, business model, and growth potential.
- Determine Open Text's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Open Text's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Open Text represents a small ownership stake in the entity. As a stockholder of Open, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Open Text Dividends Analysis For Valuation
At this time, Open Text's Dividend Yield is fairly stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to rise to 5.43 in 2024, whereas Dividends Paid is likely to drop slightly above 165.7 M in 2024. . At this time, Open Text's Retained Earnings are fairly stable compared to the past year. Price Earnings Ratio is likely to rise to 70.58 in 2024, whereas Retained Earnings Total Equity is likely to drop slightly above 1.3 B in 2024.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 298.5 M | 165.7 M | |
| Dividend Yield | 0.03 | 0.04 | |
| Dividend Payout Ratio | 1.98 | 1.06 | |
| Dividend Paid And Capex Coverage Ratio | 5.17 | 5.43 |
There are various types of dividends Open Text can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Open shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Open Text Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Open pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Open Text by the value of the dividends paid out.
Open Text Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Open Text does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 270.5 M | |
| Quarterly Earnings Growth Y O Y | -0.855 | |
| Forward Price Earnings | 7.4963 |
Open Text Current Valuation Indicators
Valuation refers to the process of determining the present value of Open Text Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Open we look at many different elements of the entity such as Open's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Open Text's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Open Text's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Open Text, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Open Text's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Open Text's worth.When determining whether Open Text Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Open Text's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Open Text Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Open Text Corp Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Open Text Corp. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income. Note that the Open Text Corp information on this page should be used as a complementary analysis to other Open Text's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Complementary Tools for Open Stock analysis
When running Open Text's price analysis, check to measure Open Text's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Open Text is operating at the current time. Most of Open Text's value examination focuses on studying past and present price action to predict the probability of Open Text's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Open Text's price. Additionally, you may evaluate how the addition of Open Text to your portfolios can decrease your overall portfolio volatility.
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Is Open Text's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Open Text. If investors know Open will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Open Text listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.85) | Dividend Share 0.986 | Earnings Share 0.48 | Revenue Per Share 21.019 | Quarterly Revenue Growth 0.71 |
The market value of Open Text Corp is measured differently than its book value, which is the value of Open that is recorded on the company's balance sheet. Investors also form their own opinion of Open Text's value that differs from its market value or its book value, called intrinsic value, which is Open Text's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Open Text's market value can be influenced by many factors that don't directly affect Open Text's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Open Text's value and its price as these two are different measures arrived at by different means. Investors typically determine if Open Text is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Open Text's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.