Open Text Corporation (OTEX) Financial Ratios
29 years of historical data (1997–2025) · Technology · Software - Application
EV/EBITDA
↓
6.26
↓-41% vs avg
5yr avg: 10.60
30Y Low7.5·High27.7
P/FCF
↓
7.30
↓-46% vs avg
5yr avg: 13.43
30Y Low10.1·High84.1
P/B Ratio
↓
1.39
↓-45% vs avg
5yr avg: 2.53
30Y Low1.6·High3.8
ROE
↑
10.7%
↓+24% vs avg
5yr avg: 8.6%
30Y Low-66%·High38%
Debt/EBITDA
↑
3.96
↓-7% vs avg
5yr avg: 4.24
30Y Low0.0·High6.8
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
OTEX Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Open Text Corporation trades at 12.5x earnings, 65% below its 5-year average of 35.8x, sitting at the 4th percentile of its historical range. Compared to the Technology sector median P/E of 29.0x, the stock trades at a discount of 57%. On a free-cash-flow basis, the stock trades at 7.3x P/FCF, 46% below the 5-year average of 13.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.0B | $7.7B | $8.2B | $11.2B | $10.3B | $13.9B | $11.5B | $11.1B | $9.4B | $8.1B | $7.2B |
| Enterprise Value | $10.5B | $13.2B | $13.6B | $19.3B | $13.1B | $16.2B | $14.3B | $12.8B | $11.4B | $10.2B | $8.1B |
| P/E Ratio → | 12.54 | 17.70 | 17.57 | 74.20 | 26.28 | 43.05 | 49.98 | 38.87 | 38.67 | 7.87 | 25.28 |
| P/S Ratio | 0.97 | 1.49 | 1.43 | 2.48 | 3.00 | 3.96 | 3.77 | 3.83 | 3.46 | 3.45 | 3.88 |
| P/B Ratio | 1.39 | 1.96 | 1.95 | 2.79 | 2.55 | 3.39 | 2.88 | 2.86 | 2.53 | 2.28 | 3.65 |
| P/FCF | 7.30 | 11.20 | 10.13 | 17.15 | 11.58 | 17.10 | 13.09 | 13.69 | 15.57 | 22.43 | 15.84 |
| P/OCF | 6.04 | 9.27 | 8.46 | 14.42 | 10.48 | 15.86 | 12.10 | 12.69 | 13.26 | 18.37 | 13.73 |
P/E links to full P/E history page with 30-year chart
OTEX EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Open Text Corporation's enterprise value stands at 6.3x EBITDA, 41% below its 5-year average of 10.6x. The Technology sector median is 16.7x, placing the stock at a 63% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.55 | 2.38 | 4.25 | 3.81 | 4.61 | 4.67 | 4.40 | 4.18 | 4.36 | 4.34 |
| EV / EBITDA | 6.26 | 7.85 | 7.50 | 14.15 | 11.12 | 12.39 | 12.98 | 11.74 | 11.86 | 13.09 | 12.18 |
| EV / EBIT | 10.12 | 15.34 | 10.53 | 31.34 | 21.84 | 21.26 | 29.93 | 21.85 | 22.67 | 27.07 | 21.56 |
| EV / FCF | — | 19.18 | 16.82 | 29.37 | 14.71 | 19.89 | 16.25 | 15.75 | 18.77 | 28.34 | 17.73 |
OTEX Profitability
Margins and return-on-capital ratios measuring operating efficiency
Open Text Corporation earns an operating margin of 20.1%. Operating margins have expanded from 15.4% to 20.1% over the past 3 years, signaling improving operational efficiency. ROE of 10.7% is modest. ROIC of 8.2% represents adequate returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 72.3% | 72.3% | 62.9% | 61.0% | 60.9% | 60.5% | 57.8% | 57.5% | 56.6% | 57.3% | 59.3% |
| Operating Margin | 20.1% | 20.1% | 17.7% | 15.4% | 19.8% | 21.8% | 19.5% | 21.1% | 19.0% | 18.2% | 22.3% |
| Net Profit Margin | 8.4% | 8.4% | 8.1% | 3.4% | 11.4% | 9.2% | 7.5% | 10.0% | 8.6% | 44.8% | 15.6% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.7% | 10.7% | 11.2% | 3.8% | 9.6% | 7.9% | 5.9% | 7.6% | 6.5% | 38.0% | 15.3% |
| ROA | 3.1% | 3.1% | 2.9% | 1.1% | 3.9% | 3.2% | 2.5% | 3.7% | 3.1% | 16.6% | 6.1% |
| ROIC | 8.2% | 8.2% | 7.0% | 5.5% | 7.7% | 8.7% | 7.2% | 8.2% | 6.8% | 7.5% | 11.3% |
| ROCE | 9.3% | 9.3% | 8.0% | 6.2% | 8.0% | 9.2% | 7.8% | 8.9% | 7.9% | 7.9% | 10.1% |
OTEX Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Open Text Corporation carries a Debt/EBITDA ratio of 4.0x, which is moderately leveraged (34% above the sector average of 2.9x). Net debt stands at $5.5B ($6.6B total debt minus $1.2B cash). Interest coverage of just 2.3x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.69 | 1.69 | 1.59 | 2.30 | 1.11 | 0.94 | 1.12 | 0.67 | 0.70 | 0.73 | 1.08 |
| Debt / EBITDA | 3.96 | 3.96 | 3.69 | 6.79 | 3.81 | 2.97 | 4.05 | 2.40 | 2.74 | 3.30 | 3.23 |
| Net Debt / Equity | — | 1.40 | 1.29 | 1.99 | 0.69 | 0.55 | 0.69 | 0.43 | 0.52 | 0.60 | 0.44 |
| Net Debt / EBITDA | 3.27 | 3.27 | 2.98 | 5.89 | 2.37 | 1.74 | 2.52 | 1.54 | 2.02 | 2.73 | 1.30 |
| Debt / FCF | — | 7.98 | 6.69 | 12.23 | 3.13 | 2.79 | 3.16 | 2.06 | 3.20 | 5.91 | 1.89 |
| Interest Coverage | 2.28 | 2.28 | 2.28 | 1.60 | 3.68 | 4.89 | 3.03 | 4.20 | 3.92 | 3.11 | 4.91 |
OTEX Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.80x is below 1.0, meaning current liabilities exceed current assets — though the company's $1.2B cash position helps mitigate short-term liquidity concerns. The current ratio has improved from 0.71x to 0.80x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.80 | 0.80 | 0.81 | 0.71 | 1.56 | 1.62 | 1.25 | 1.54 | 1.33 | 0.89 | 2.49 |
| Quick Ratio | 0.80 | 0.80 | 0.81 | 0.71 | 1.56 | 1.62 | 1.25 | 1.54 | 1.33 | 0.89 | 2.49 |
| Cash Ratio | 0.42 | 0.42 | 0.46 | 0.38 | 1.15 | 1.18 | 0.89 | 0.93 | 0.69 | 0.39 | 1.93 |
| Asset Turnover | — | 0.38 | 0.40 | 0.27 | 0.34 | 0.37 | 0.30 | 0.37 | 0.35 | 0.31 | 0.36 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 59.77 | 48.16 | 66.19 | 50.06 | 51.63 | 66.34 | 65.70 | 72.99 | 74.63 | 62.24 |
OTEX Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Open Text Corporation returns 15.8% to shareholders annually — split between a 5.0% dividend yield and 10.8% buyback yield. A payout ratio of 62.3% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 8.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.0% | 3.5% | 3.3% | 2.3% | 2.3% | 1.5% | 1.6% | 1.5% | 1.5% | 1.5% | 1.4% |
| Payout Ratio | 62.3% | 62.3% | 58.1% | 170.8% | 60.9% | 65.4% | 81.7% | 58.4% | 62.3% | 11.5% | 34.2% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.0% | 5.7% | 5.7% | 1.3% | 3.8% | 2.3% | 2.0% | 2.6% | 2.6% | 12.7% | 4.0% |
| FCF Yield | 13.7% | 8.9% | 9.9% | 5.8% | 8.6% | 5.8% | 7.6% | 7.3% | 6.4% | 4.5% | 6.3% |
| Buyback Yield | 10.8% | 7.1% | 2.5% | 0.2% | 2.8% | 1.3% | 0.1% | 0.2% | 0.0% | 0.1% | 1.1% |
| Total Shareholder Yield | 15.8% | 10.6% | 5.7% | 2.5% | 5.1% | 2.8% | 1.7% | 1.8% | 1.5% | 1.6% | 2.4% |
| Shares Outstanding | — | $264M | $273M | $270M | $272M | $273M | $272M | $270M | $267M | $256M | $244M |
Peer Comparison
Compare OTEX with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 OTEXYou | $5B | 12.5 | 6.3 | 7.3 | 72.3% | 20.1% | 10.7% | 8.2% | 4.0 |
 MSFT | $2.8T | 27.8 | 17.8 | 39.4 | 68.8% | 45.6% | 33.3% | 24.9% | 0.7 |
 IBM | $234B | 22.3 | 18.7 | 20.2 | 59.5% | 15.3% | 35.2% | 9.8% | 4.4 |
 BOX | $3B | 42.1 | 34.0 | 9.8 | 79.2% | 7.1% | — | 19.4% | 8.5 |
 DOCN | $18B | 68.8 | 63.0 | 106.5 | 59.9% | 17.4% | — | 15.6% | 2.5 |
 MANH | $8B | 36.7 | 26.4 | 21.0 | 55.7% | 26.1% | 71.7% | 236.8% | 0.4 |
 FIVN | $1B | 42.2 | 15.3 | 7.4 | 54.7% | 2.8% | 5.6% | 1.7% | 6.2 |
 SAP | $181B | 22.6 | 14.2 | 19.9 | 73.8% | 26.7% | 15.5% | 16.0% | 0.7 |
 ORCL | $530B | 31.6 | 22.8 | — | 65.2% | 30.8% | 53.4% | 11.0% | 5.4 |
 CRM | $124B | 19.5 | 10.7 | 8.6 | 77.7% | 21.5% | 12.4% | 10.1% | 1.4 |
 NOW | $98B | 56.9 | 38.2 | 21.5 | 77.5% | 13.7% | 15.5% | 12.4% | 1.3 |
| Technology Median | — | 29.0 | 16.7 | 19.2 | 48.8% | 0.2% | 1.6% | 2.7% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 29 years · Updated daily
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OTEX — Frequently Asked Questions
Quick answers to the most common questions about buying OTEX stock.
What is Open Text Corporation's P/E ratio?
Open Text Corporation's current P/E ratio is 12.5x. The historical average is 37.1x. This places it at the 4th percentile of its historical range.
What is Open Text Corporation's EV/EBITDA?
Open Text Corporation's current EV/EBITDA is 6.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.3x.
What is Open Text Corporation's ROE?
Open Text Corporation's return on equity (ROE) is 10.7%. The historical average is 6.4%.
Is OTEX stock overvalued?
Based on historical data, Open Text Corporation is trading at a P/E of 12.5x. This is at the 4th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Open Text Corporation's dividend yield?
Open Text Corporation's current dividend yield is 4.98% with a payout ratio of 62.3%.
What are Open Text Corporation's profit margins?
Open Text Corporation has 72.3% gross margin and 20.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Open Text Corporation have?
Open Text Corporation's Debt/EBITDA ratio is 4.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.