Latest Ratios: P/E Ratio 14.1x · EV/EBITDA 6.6x · ROE 10.7%. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.7B | $7.7B | $8.2B | $11.2B | $10.3B | $13.9B | $11.5B | $11.1B | $9.4B | $8.1B | $7.2B |
| Enterprise Value | $11.1B | $13.2B | $13.6B | $19.3B | $13.1B | $16.2B | $14.3B | $12.8B | $11.4B | $10.2B | $8.1B |
| P/E Ratio → | 14.12 | 17.70 | 17.57 | 74.20 | 26.28 | 43.05 | 49.98 | 38.87 | 38.67 | 7.87 | 25.28 |
| P/S Ratio | 1.09 | 1.49 | 1.43 | 2.48 | 3.00 | 3.96 | 3.77 | 3.83 | 3.46 | 3.45 | 3.88 |
| P/B Ratio | 1.56 | 1.96 | 1.95 | 2.79 | 2.55 | 3.39 | 2.88 | 2.86 | 2.53 | 2.28 | 3.65 |
| P/FCF | 8.22 | 11.20 | 10.13 | 17.15 | 11.58 | 17.10 | 13.09 | 13.69 | 15.57 | 22.43 | 15.84 |
| P/OCF | 6.80 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 6.63 | 7.85 | 7.50 | 14.15 | 11.12 | 12.39 | 12.98 | 11.74 | 11.86 | 13.09 | 12.18 |
| EV / EBIT | 10.73 | 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 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 |
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 4.4% | 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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.1% | 5.7% | 5.7% | 1.3% | 3.8% | 2.3% | 2.0% | 2.6% | 2.6% | 12.7% | 4.0% |
| FCF Yield | 12.2% | 8.9% | 9.9% | 5.8% | 8.6% | 5.8% | 7.6% | 7.3% | 6.4% | 4.5% | 6.3% |
| Buyback Yield | 9.6% | 7.1% | 2.5% | 0.2% | 2.8% | 1.3% | 0.1% | 0.2% | 0.0% | 0.1% | 1.1% |
| Total Shareholder Yield | 14.0% | 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 |
High debt-to-equity leverage
According to current market data, OpenText trades at a forward P/E of 5.39, which, as reported in financial statements, suggests that investors are heavily discounting the company's future earnings potential relative to broader software peers like Microsoft, likely due to persistent concerns regarding organic growth stagnation.
The low forward P/E multiple indicates that the market is pricing in a significant risk premium for the company's reliance on acquisition-led growth. This valuation appears to reflect a 'value trap' perception, where the market remains skeptical of management's ability to successfully pivot legacy assets toward high-growth AI and cloud initiatives.
Based on reported figures, OpenText's ROIC has remained consistently low, hovering near 2.2% as of 2026Q3, which indicates that the company is struggling to generate meaningful returns on its massive invested capital base compared to the higher efficiency levels observed in its software sector peers.
The persistent gap between the cost of capital and these low returns suggests that the aggressive acquisition strategy may be diluting shareholder value rather than compounding it. Investors should monitor whether future capital allocation shifts toward organic innovation can improve these returns, as the current trend appears to be one of capital stagnation.
As reported in recent quarterly filings, OpenText's asset turnover ratio has remained stagnant at approximately 0.09, suggesting that the company's massive asset base, inflated by goodwill from acquisitions, is not being utilized efficiently to drive top-line revenue growth compared to historical performance benchmarks.
The lack of improvement in asset turnover highlights the difficulty of integrating large-scale legacy software businesses into a cohesive, high-velocity platform. This inefficiency warrants further investigation into whether the company's operational structure is too bloated to support the agility required for modern cloud-based software delivery.
According to recent SEC filings, OpenText's debt-to-EBITDA ratio remains elevated at 15.60 as of 2026Q3, which indicates that the company's ability to service its debt is becoming increasingly strained, leaving little room for operational errors or further debt-funded expansion in a high-interest rate environment.
The interest coverage ratio of 3.51 suggests that while the company is currently meeting its obligations, the margin of safety is thin compared to historical norms. This leverage profile appears to be a structural constraint that may force management to prioritize debt reduction over strategic growth investments in the near term.
Based on an analysis of the business model, the P/E ratio is the most commonly misapplied metric for OpenText, as it fails to account for the massive non-cash amortization of intangibles that artificially depresses GAAP earnings and obscures the company's true underlying cash-generating capacity.
Analysts should instead focus on EV/EBITDA or P/FCF to better capture the cash-generative nature of the company's legacy maintenance and subscription base. Relying on P/E risks misinterpreting the company's financial health by focusing on accounting distortions rather than the actual cash flows available for debt service and shareholder returns.
Includes 30+ ratios · 29 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying OTEX stock.
Open Text Corporation's current P/E ratio is 14.1x. The historical average is 37.1x. This places it at the 4th percentile of its historical range.
Open Text Corporation's current EV/EBITDA is 6.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.3x.
Open Text Corporation's return on equity (ROE) is 10.7%. The historical average is 6.4%.
Based on historical data, Open Text Corporation is trading at a P/E of 14.1x. This is at the 4th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Open Text Corporation's current dividend yield is 4.42% with a payout ratio of 62.3%.
Open Text Corporation has 72.3% gross margin and 20.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Open Text Corporation's Debt/EBITDA ratio is 4.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.