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Open TextTSX:OTEX +0.17%85 EV-to-EBITDA is 6.26 as of Aug. 07, 2026, which is 48% below its 10-year median of 12.07. GuruFocus rates TSX:OTEX with a GF Score™ of 85/100 and a GF Value™ of C$43.75 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,961 Software companies, Open Text ranks better than 72.87% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Open Text's enterprise value is C$15,753 Mil.
Open Text's EBITDA for the trailing twelve months (TTM) ended in Jun. 2026 was C$2,518 Mil. Therefore, Open Text's EV-to-EBITDA for today is 6.26.
The historical rank and industry rank for Open Text's EV-to-EBITDA or its related term are showing as below:
TSX:OTEX'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 5.84 Med: 12.07 Max: 18.12
Current: 6.26
During the past 13 years, the highest EV-to-EBITDA of Open Text was 18.12. The lowest was 5.84. And the median was 12.07.
TSX:OTEX's EV-to-EBITDA is ranked better than 72.87% of 1961
companies
in the Software industry
Industry Median: 10.64
vs TSX:OTEX: 6.26
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Open Text's share price for today is C$36.02.
Open Text's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was C$3.570.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Open Text's EV-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSX:OTEX vs QH, SHOP, UBER: EV-to-EBITDA Comparison
For the Software - Application subindustry, Open Text's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Open Text EV-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Open Text's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Open Text's EV-to-EBITDA falls into.
Open Text's current Enterprise Value is C$15,753 Mil.
Open Text's EBITDA for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was C$2,518 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Open Text (TSX:OTEX) has a EV-to-EBITDA of 6.26 as of Aug. 07, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Open Text. This is 48% below median its historical median of 12.07. Over the past decade, Open Text's EV-to-EBITDA has ranged from 5.84 to 18.12. According to the industry distribution chart, Open Text ranks #532 out of 1961 companies in the Software industry, placing it in the top 27.1%.
Is Open Text's EV-to-EBITDA too high?
Open Text's current EV-to-EBITDA of 6.26 is 48% below median its 10-year median of 12.07. Over the past 10 years, this metric has ranged from a low of 5.84 to a high of 18.12. The Software industry median EV-to-EBITDA is 10.64. Open Text's value of 6.26 is 41.2% below this industry median. Based on the distribution chart, Open Text ranks #532 out of 1961 companies in the Software industry, which is above the industry midpoint. Overall, Open Text has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Open Text's EV-to-EBITDA compare to QH and SHOP?
According to the Software industry distribution chart, Open Text ranks #532 out of 1961 companies for EV-to-EBITDA. This puts Open Text in the upper half of its industry. The industry median EV-to-EBITDA is 10.64. Open Text's value of 6.26 is 41.2% below this benchmark. Historically, Open Text's own EV-to-EBITDA has ranged from 5.84 to 18.12 over the past decade. While the company's 10-year median is 12.07 vs. the industry median of 10.64, Open Text has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.64, based on 1,961 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Open Text's current EV-to-EBITDA of 6.26 is 41.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Open Text. For the Software industry, the median EV-to-EBITDA is 10.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Open Text's current EV-to-EBITDA is 6.26, which is 48% below median its own 10-year median of 12.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Open Text stock overvalued right now?
Based on GuruFocus' analysis, Open Text (TSX:OTEX) is currently considered Modestly Undervalued. The stock's GF Value™ is C$43.75, compared to a current price of C$36.02 — trading 17.7% below its estimated fair value. The current EV-to-EBITDA is 6.26, which is 48% below median its 10-year median of 12.07 and 41.2% below the Software industry median of 10.64. Open Text's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Open Text (TSX:OTEX), the current EV-to-EBITDA is 6.26 as of Aug. 07, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Open Text (TSX:OTEX) Overvalued in 2026?
Based on GuruFocus' analysis, Open Text stock appears to be undervalued.
The current stock price of C$36.02 is trading 17.7% below its estimated GF Value™ of C$43.75.
GuruFocus considers Open Text to be Modestly Undervalued.
Key valuation signals for TSX:OTEX:
EV-to-EBITDA: 6.26 (48% below median its 10-year median of 12.07)
GF Value™: C$43.75 vs. price of C$36.02 (17.7% below fair value)
Industry Position: 41.2% below the Software median (#532 of 1961)
No single metric tells the full story. See the TSX:OTEX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Open Text Corp is engaged in the design, development, marketing, and sale of Information Management software and solutions. Its software allows clients to archive, aggregate, retrieve, and search unstructured information (such as documents, e-mail, and presentations). Its platform and services provide secure and scalable solutions for enterprises, SMBs, governments, and consumers around the world. The company's solutions are marketed and delivered on the OpenText Cloud Platform, which is a comprehensive Information Management platform consisting of six business clouds; Content Cloud, Cybersecurity Cloud, Application Automation Cloud, Business Network Cloud, IT Operations Management Cloud, and Analytics Cloud. Geographically, it derives maximum revenue from the United States.
85GF Score
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