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Open TextTSX:OTEX +0.21%86 EV-to-OCF is 10.89 as of Aug. 21, 2026, which is 33% below its 10-year median of 16.15. GuruFocus rates TSX:OTEX with a GF Score™ of 86/100 and a GF Value™ of C$43.60 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,877 Software companies, Open Text ranks worse than 61.66% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Open Text's Enterprise Value is C$15,149 Mil.
Open Text's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was C$1,391 Mil. Therefore, Open Text's EV-to-OCF for today is 10.89.
The historical rank and industry rank for Open Text's EV-to-OCF or its related term are showing as below:
TSX:OTEX'
s EV-to-OCF Range Over the Past 10 Years
Min: 10.39 Med: 16.15 Max: 27.77
Current: 10.89
During the past 13 years, the highest EV-to-OCF of Open Text was 27.77. The lowest was 10.39. And the median was 16.15.
TSX:OTEX's EV-to-OCF is ranked worse than 61.66% of 2877
companies
in the Software industry
Industry Median: 7.02
vs TSX:OTEX: 10.89
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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$33.94.
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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Open Text EV-to-OCF Related Terms
Open Text EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Open Text's EV-to-OCF 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.
For the Software - Application subindustry, Open Text's EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Software Industry
For the Software industry and Technology sector, Open Text's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Open Text's EV-to-OCF falls into.
Open Text's current Enterprise Value is C$15,149 Mil.
Open Text's Cash Flow from Operations 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$1,391 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-OCF of 10.89 as of Aug. 21, 2026. This is 33% below median its historical median of 16.15. Over the past decade, Open Text's EV-to-OCF has ranged from 10.39 to 27.77. According to the industry distribution chart, Open Text ranks #1774 out of 2877 companies in the Software industry, placing it in the top 61.7%.
Is Open Text's EV-to-OCF too high?
Open Text's current EV-to-OCF of 10.89 is 33% below median its 10-year median of 16.15. Over the past 10 years, this metric has ranged from a low of 10.39 to a high of 27.77. The Software industry median EV-to-OCF is 7.02. Open Text's value of 10.89 is 55.1% above this industry median. Based on the distribution chart, Open Text ranks #1774 out of 2877 companies in the Software industry, which is below the industry midpoint. Overall, Open Text has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Open Text's EV-to-OCF compare to QH and SHOP?
According to the Software industry distribution chart, Open Text ranks #1774 out of 2877 companies for EV-to-OCF. This places Open Text in the lower half of its industry. The industry median EV-to-OCF is 7.02. Open Text's value of 10.89 is 55.1% above this benchmark. Historically, Open Text's own EV-to-OCF has ranged from 10.39 to 27.77 over the past decade. While the company's 10-year median is 16.15 vs. the industry median of 7.02, Open Text has consistently been above 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-OCF for a Software company?
The median EV-to-OCF among Software companies is 7.02, based on 2,877 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Open Text's current EV-to-OCF of 10.89 is 55.1% above 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median EV-to-OCF is 7.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Open Text's current EV-to-OCF is 10.89, which is 33% below median its own 10-year median of 16.15. 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$43.60, compared to a current price of C$33.94 — trading 22.2% below its estimated fair value. The current EV-to-OCF is 10.89, which is 33% below median its 10-year median of 16.15 and 55.1% above the Software industry median of 7.02. Open Text's overall GF Score™ is 86/100 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Open Text (TSX:OTEX), the current EV-to-OCF is 10.89 as of Aug. 21, 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$33.94 is trading 22.2% below its estimated GF Value™ of C$43.60.
GuruFocus considers Open Text to be Modestly Undervalued.
Key valuation signals for TSX:OTEX:
EV-to-OCF: 10.89 (33% below median its 10-year median of 16.15)
GF Value™: C$43.60 vs. price of C$33.94 (22.2% below fair value)
Industry Position: 55.1% above the Software median (#1774 of 2877)
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.
86GF Score
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