Open TextMEX:OTEXN 85 PEG Ratio is 0.85 as of Jun. 25, 2026, which is 1% above its 10-year median of 0.84. GuruFocus rates MEX:OTEXN with a GF Score™ of 85/100 and a GF Value™ of MXN1,168.28. The stock has 4 warning signs investors should review. Among 821 Software companies, Open Text ranks better than 85.51% on this metric.
PE Ratio without NRI / 5-Year EBITDA Growth Rate*
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Open Text's PE Ratio without NRI is 10.22. Open Text's 5-Year EBITDA growth rate is 12.00%. Therefore, Open Text's PEG Ratio for today is 0.85.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Open Text's PEG Ratio or its related term are showing as below:
MEX:OTEXN'
s PEG Ratio Range Over the Past 10 Years
Min: 0.37 Med: 0.84 Max: 3.82
Current: 0.44
During the past 13 years, Open Text's highest PEG Ratio was 3.82. The lowest was 0.37. And the median was 0.84.
MEX:OTEXN's PEG Ratio is ranked better than 85.51% of 821
companies
in the Software industry
Industry Median: 1.27
vs MEX:OTEXN: 0.44
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Open Text (MEX:OTEXN) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Open Text PEG Ratio Related Terms
Open Text PEG Ratio Historical Data
* Premium members only.
The historical data trend for Open Text's PEG 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.
MEX:OTEXN vs CRM, SHOP, UBER: PEG Ratio Comparison
For the Software - Application subindustry, Open Text's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Software Industry
For the Software industry and Technology sector, Open Text's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Open Text's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Open Text (MEX:OTEXN) has a PEG Ratio of 0.85 as of Jun. 25, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Open Text and its competitors. This is near median its historical median of 0.84. Over the past decade, Open Text's PEG Ratio has ranged from 0.37 to 3.82. According to the industry distribution chart, Open Text ranks #119 out of 821 companies in the Software industry, placing it in the top 14.5%.
Is Open Text's PEG Ratio too high?
Open Text's current PEG Ratio of 0.85 is near median its 10-year median of 0.84. Over the past 10 years, this metric has ranged from a low of 0.37 to a high of 3.82. The Software industry median PEG Ratio is 1.27. Open Text's value of 0.85 is 33.1% below this industry median. Based on the distribution chart, Open Text ranks #119 out of 821 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, reflecting its overall financial health beyond just this single metric.
How does Open Text's PEG Ratio compare to CRM and SHOP?
According to the Software industry distribution chart, Open Text ranks #119 out of 821 companies for PEG Ratio. This places Open Text in the top 15% of its industry — outperforming the majority of peers. The industry median PEG Ratio is 1.27. Open Text's value of 0.85 is 33.1% below this benchmark. Historically, Open Text's own PEG Ratio has ranged from 0.37 to 3.82 over the past decade. While the company's 10-year median is 0.84 vs. the industry median of 1.27, 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 PEG Ratio for a Software company?
The median PEG Ratio among Software companies is 1.27, based on 821 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Open Text's current PEG Ratio of 0.85 is 33.1% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Open Text and its competitors. For the Software industry, the median PEG Ratio is 1.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Open Text's current PEG Ratio is 0.85, which is near median its own 10-year median of 0.84. 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?
Open Text (MEX:OTEXN) has a current PEG Ratio of 0.85. The stock's GF Value™ is MXN1,168.28, compared to a current price of MXN777.91 — trading 33.4% below its estimated fair value. The current PEG Ratio is 0.85, which is near median its 10-year median of 0.84 and 33.1% below the Software industry median of 1.27. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Open Text (MEX:OTEXN), the current PEG Ratio is 0.85 as of Jun. 25, 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 (MEX:OTEXN) Overvalued in 2026?
Based on GuruFocus' analysis, Open Text stock appears to be undervalued.
The current stock price of MXN777.91 is trading 33.4% below its estimated GF Value™ of MXN1,168.28.
Key valuation signals for MEX:OTEXN:
PEG Ratio: 0.85 (near median its 10-year median of 0.84)
GF Value™: MXN1,168.28 vs. price of MXN777.91 (33.4% below fair value)
Industry Position: 33.1% below the Software median (#119 of 821)
No single metric tells the full story. See the MEX:OTEXN 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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