Open TextTSX:OTEX +0.21%85 EV-to-FCF is 13.72 as of Jul. 05, 2026, which is 26% below its 10-year median of 18.44. GuruFocus rates TSX:OTEX with a GF Score™ of 85/100 and a GF Value™ of C$46.20 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,589 Software companies, Open Text ranks better than 51.92% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Open Text's Enterprise Value is C$15,273 Mil.
Open Text's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was C$1,113 Mil. Therefore, Open Text's EV-to-FCF for today is 13.72.
The historical rank and industry rank for Open Text's EV-to-FCF or its related term are showing as below:
TSX:OTEX'
s EV-to-FCF Range Over the Past 10 Years
Min: 11.95 Med: 18.44 Max: 33.84
Current: 13.72
During the past 13 years, the highest EV-to-FCF of Open Text was 33.84. The lowest was 11.95. And the median was 18.44.
TSX:OTEX's EV-to-FCF is ranked better than 51.92% of 1589
companies
in the Software industry
Industry Median: 14.3
vs TSX:OTEX: 13.72
EV-to-FCF 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-FCF 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$32.74.
Open Text's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was C$2.822.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Open Text EV-to-FCF Related Terms
Open Text EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Open Text's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Software Industry
For the Software industry and Technology sector, Open Text's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Open Text's EV-to-FCF falls into.
Open Text's current Enterprise Value is C$15,273 Mil.
Open Text's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was C$1,113 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-FCF of 13.72 as of Jul. 05, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Open Text and its competitors. This is 26% below median its historical median of 18.44. Over the past decade, Open Text's EV-to-FCF has ranged from 11.95 to 33.84. According to the industry distribution chart, Open Text ranks #764 out of 1589 companies in the Software industry, placing it in the top 48.1%.
Is Open Text's EV-to-FCF too high?
Open Text's current EV-to-FCF of 13.72 is 26% below median its 10-year median of 18.44. Over the past 10 years, this metric has ranged from a low of 11.95 to a high of 33.84. The Software industry median EV-to-FCF is 14.30. Open Text's value of 13.72 is 4.1% below this industry median. Based on the distribution chart, Open Text ranks #764 out of 1589 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-FCF compare to UBER and SHOP?
According to the Software industry distribution chart, Open Text ranks #764 out of 1589 companies for EV-to-FCF. This puts Open Text in the upper half of its industry. The industry median EV-to-FCF is 14.30. Open Text's value of 13.72 is 4.1% below this benchmark. Historically, Open Text's own EV-to-FCF has ranged from 11.95 to 33.84 over the past decade. While the company's 10-year median is 18.44 vs. the industry median of 14.30, 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 14.30, based on 1,589 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Open Text's current EV-to-FCF of 13.72 is 4.1% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Open Text and its competitors. For the Software industry, the median EV-to-FCF is 14.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Open Text's current EV-to-FCF is 13.72, which is 26% below median its own 10-year median of 18.44. 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$46.20, compared to a current price of C$32.74 — trading 29.1% below its estimated fair value. The current EV-to-FCF is 13.72, which is 26% below median its 10-year median of 18.44 and 4.1% below the Software industry median of 14.30. Open Text's overall GF Score™ is 85/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Open Text (TSX:OTEX), the current EV-to-FCF is 13.72 as of Jul. 05, 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$32.74 is trading 29.1% below its estimated GF Value™ of C$46.20.
GuruFocus considers Open Text to be Modestly Undervalued.
Key valuation signals for TSX:OTEX:
EV-to-FCF: 13.72 (26% below median its 10-year median of 18.44)
GF Value™: C$46.20 vs. price of C$32.74 (29.1% below fair value)
Industry Position: 4.1% below the Software median (#764 of 1589)
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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