Open Text Corporation provides a suite of software products and services that assist organizations in finding, utilizing, and sharing business information from various devices. The company was founded in 1991 and is based in Waterloo, Canada.
OTEX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Open Text Corp. To summarize, we found that Open Text Corp ranked in the 56th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for OTEX, they are:
The company's balance sheet shows it gets 73% of its capital from equity, and 27% of its capital from debt. Its equity weight surpasses that of just 16.67% of free cash flow generating stocks in the Technology sector.
Open Text Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 13.4% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Open Text (OTEX) shares are down 2.5% after Veritas Investment Research analyst Howard Leung cuts the company from Buy to Sell.Leung thinks "the stock has rallied too far given its less than certain prospects."The analyst sees a risk of negative growth negating long-term FCF and M&A activity.Veritas maintains a $40...
Open Text Corporation (OTEX) Q4 2020 Results Conference Call August 06, 2020 05:00 PM ET Company Participants Harry Blount - Senior Vice President, Investor Relations Mark Barrenechea - Chief Executive Officer and CTO Madhu Ranganathan - Executive Vice President and CFO Conference Call Participants Stephanie Price - CIBC World Markets...
OpenText™ (NASDAQ: OTEX) (TSX: OTEX) today announced the Department of Social Development of South Africa has deployed OpenText™ Documentum™ xCP, a case management framework to digitize its social assistance appeals process. The solution enables the department to provide a more effective, efficient, and accessible social assistance appeals service for its citizens and reduce legal expenditures.