Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Open Text Forward PE Ratio Related Terms
Open Text Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for Open Text's Forward PE Ratio 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.
Open Text Forward PE Ratio Chart
Open Text Annual Data
Trend
2016-06
2017-06
2018-06
2019-06
2020-06
2021-06
2022-06
2023-06
2024-06
2025-06
Forward PE Ratio
14.86
12.55
12.79
13.70
13.99
14.84
11.38
8.98
8.47
7.04
Open Text Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
13.53
13.14
14.86
15.92
15.36
13.44
12.55
13.19
14.10
12.20
12.79
13.85
12.42
12.87
13.70
14.03
14.93
9.87
13.99
14.31
14.25
14.18
14.84
15.13
13.79
11.75
11.38
8.39
9.17
8.31
8.98
7.45
8.73
8.14
8.47
9.20
7.77
6.20
7.04
9.07
8.07
4.95
TSX:OTEX vs UBER, SHOP, CRM: Forward PE Ratio Comparison
For the Software - Application subindustry, Open Text's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Software Industry
For the Software industry and Technology sector, Open Text's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Open Text's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Open Text (TSX:OTEX) has a Forward PE Ratio of 5.18 as of Jul. 23, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Open Text and its competitors. According to the industry distribution chart, Open Text ranks #67 out of 1173 companies in the Software industry, placing it in the top 5.7%.
Is Open Text's Forward PE Ratio too high?
Open Text's current Forward PE Ratio is 5.18. The Software industry median Forward PE Ratio is 18.69. Open Text's value of 5.18 is 72.3% below this industry median. Based on the distribution chart, Open Text ranks #67 out of 1173 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Open Text has a GF Score™ of 85/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Open Text's Forward PE Ratio compare to UBER and SHOP?
According to the Software industry distribution chart, Open Text ranks #67 out of 1173 companies for Forward PE Ratio. This places Open Text in the top 6% of its industry — outperforming the majority of peers. The industry median Forward PE Ratio is 18.69. Open Text's value of 5.18 is 72.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Software company?
The median Forward PE Ratio among Software companies is 18.69, based on 1,173 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Open Text's current Forward PE Ratio of 5.18 is 72.3% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Open Text and its competitors. For the Software industry, the median Forward PE Ratio is 18.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Open Text's current Forward PE Ratio is 5.18. 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 Possible Value Trap. The stock's GF Value™ is C$45.76, compared to a current price of C$31.26 — trading 31.7% below its estimated fair value. The current Forward PE Ratio is 5.18 and 72.3% below the Software industry median of 18.69. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Open Text (TSX:OTEX), the current Forward PE Ratio is 5.18 as of Jul. 23, 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$31.26 is trading 31.7% below its estimated GF Value™ of C$45.76.
GuruFocus considers Open Text to be Possible Value Trap.
Key valuation signals for TSX:OTEX:
Forward PE Ratio: 5.18
GF Value™: C$45.76 vs. price of C$31.26 (31.7% below fair value)
Industry Position: 72.3% below the Software median (#67 of 1173)
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
Get the complete analysis for TSX:OTEX
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSX:OTEX has been successfully added to your 
