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Open TextTSX:OTEX -0.82%89 5-Year Yield-on-Cost % is 7.49 as of Jul. 20, 2026, which is 174% above its 10-year median of 2.73. GuruFocus rates TSX:OTEX with a GF Score™ of 89/100 and a GF Value™ of C$45.64 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,027 Software companies, Open Text ranks better than 82.67% on this metric.
Open Text's yield on cost for the quarter that ended in Mar. 2026 was 7.49.
The historical rank and industry rank for Open Text's 5-Year Yield-on-Cost % or its related term are showing as below:
TSX:OTEX'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.04 Med: 2.73 Max: 8.32
Current: 7.49
During the past 13 years, Open Text's highest Yield on Cost was 8.32. The lowest was 2.04. And the median was 2.73.
TSX:OTEX's 5-Year Yield-on-Cost % is ranked better than 82.67% of 1027
companies
in the Software industry
Industry Median: 3.11
vs TSX:OTEX: 7.49
Open Text (TSX:OTEX) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Open Text 5-Year Yield-on-Cost % Related Terms
TSX:OTEX vs UBER, SHOP, CRM: 5-Year Yield-on-Cost % Comparison
For the Software - Application subindustry, Open Text's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Software Industry
For the Software industry and Technology sector, Open Text's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Open Text's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Open Text is calculated as
Open Text (TSX:OTEX) has a 5-Year Yield-on-Cost % of 7.49 as of Jul. 20, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Open Text and its competitors. This is 174% above median its historical median of 2.73. Over the past decade, Open Text's 5-Year Yield-on-Cost % has ranged from 2.04 to 8.32. According to the industry distribution chart, Open Text ranks #178 out of 1027 companies in the Software industry, placing it in the top 17.3%.
Is Open Text's 5-Year Yield-on-Cost % too high?
Open Text's current 5-Year Yield-on-Cost % of 7.49 is 174% above median its 10-year median of 2.73. Over the past 10 years, this metric has ranged from a low of 2.04 to a high of 8.32. The Software industry median 5-Year Yield-on-Cost % is 3.11. Open Text's value of 7.49 is 140.8% above this industry median. Based on the distribution chart, Open Text ranks #178 out of 1027 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 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Open Text's 5-Year Yield-on-Cost % compare to UBER and SHOP?
According to the Software industry distribution chart, Open Text ranks #178 out of 1027 companies for 5-Year Yield-on-Cost %. This places Open Text in the top 17% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 3.11. Open Text's value of 7.49 is 140.8% above this benchmark. Historically, Open Text's own 5-Year Yield-on-Cost % has ranged from 2.04 to 8.32 over the past decade. While the company's 10-year median is 2.73 vs. the industry median of 3.11, 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 5-Year Yield-on-Cost % for a Software company?
The median 5-Year Yield-on-Cost % among Software companies is 3.11, based on 1,027 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Open Text's current 5-Year Yield-on-Cost % of 7.49 is 140.8% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Open Text and its competitors. For the Software industry, the median 5-Year Yield-on-Cost % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Open Text's current 5-Year Yield-on-Cost % is 7.49, which is 174% above median its own 10-year median of 2.73. 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$45.64, compared to a current price of C$32.62 — trading 28.5% below its estimated fair value. The current 5-Year Yield-on-Cost % is 7.49, which is 174% above median its 10-year median of 2.73 and 140.8% above the Software industry median of 3.11. Open Text's overall GF Score™ is 89/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Open Text (TSX:OTEX), the current 5-Year Yield-on-Cost % is 7.49 as of Jul. 20, 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$32.62 is trading 28.5% below its estimated GF Value™ of C$45.64.
GuruFocus considers Open Text to be Modestly Undervalued.
Key valuation signals for TSX:OTEX:
5-Year Yield-on-Cost %: 7.49 (174% above median its 10-year median of 2.73)
GF Value™: C$45.64 vs. price of C$32.62 (28.5% below fair value)
Industry Position: 140.8% above the Software median (#178 of 1027)
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.
89GF Score
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