Intrinsic value of Open Text - OTEX

Previous Close

$35.41

  Intrinsic Value

$69.21

stock screener

  Rating & Target

str. buy

+95%

Previous close

$35.41

 
Intrinsic value

$69.21

 
Up/down potential

+95%

 
Rating

str. buy

We calculate the intrinsic value of OTEX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  25.60
  30.30
  27.77
  25.49
  23.44
  21.60
  19.94
  18.45
  17.10
  15.89
  14.80
  13.82
  12.94
  12.15
  11.43
  10.79
  10.21
  9.69
  9.22
  8.80
  8.42
  8.08
  7.77
  7.49
  7.24
  7.02
  6.82
  6.63
  6.47
  6.32
  6.19
Revenue, $m
  2,291
  2,985
  3,814
  4,786
  5,909
  7,185
  8,617
  10,207
  11,952
  13,852
  15,902
  18,100
  20,442
  22,925
  25,545
  28,301
  31,191
  34,212
  37,366
  40,654
  44,076
  47,635
  51,336
  55,182
  59,178
  63,331
  67,648
  72,136
  76,804
  81,661
  86,718
Variable operating expenses, $m
 
  2,279
  2,817
  3,447
  4,176
  5,004
  5,933
  6,965
  8,097
  9,329
  10,660
  11,744
  13,264
  14,875
  16,575
  18,363
  20,238
  22,199
  24,245
  26,378
  28,599
  30,908
  33,309
  35,805
  38,398
  41,093
  43,894
  46,806
  49,835
  52,986
  56,267
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  1,062
  2,279
  2,817
  3,447
  4,176
  5,004
  5,933
  6,965
  8,097
  9,329
  10,660
  11,744
  13,264
  14,875
  16,575
  18,363
  20,238
  22,199
  24,245
  26,378
  28,599
  30,908
  33,309
  35,805
  38,398
  41,093
  43,894
  46,806
  49,835
  52,986
  56,267
Operating income, $m
  1,229
  707
  998
  1,339
  1,733
  2,181
  2,684
  3,242
  3,855
  4,522
  5,242
  6,356
  7,178
  8,050
  8,970
  9,938
  10,953
  12,014
  13,121
  14,276
  15,477
  16,727
  18,027
  19,377
  20,780
  22,239
  23,755
  25,331
  26,970
  28,675
  30,451
EBITDA, $m
  1,575
  1,186
  1,515
  1,901
  2,347
  2,853
  3,422
  4,054
  4,747
  5,501
  6,316
  7,188
  8,119
  9,105
  10,145
  11,240
  12,387
  13,587
  14,840
  16,146
  17,505
  18,918
  20,388
  21,915
  23,502
  25,152
  26,866
  28,649
  30,503
  32,432
  34,440
Interest expense (income), $m
  115
  117
  172
  239
  317
  408
  510
  625
  753
  894
  1,046
  1,211
  1,388
  1,576
  1,776
  1,987
  2,208
  2,441
  2,684
  2,937
  3,202
  3,477
  3,763
  4,061
  4,370
  4,691
  5,025
  5,372
  5,733
  6,109
  6,499
Earnings before tax, $m
  1,126
  590
  825
  1,100
  1,416
  1,774
  2,174
  2,617
  3,102
  3,629
  4,196
  5,145
  5,790
  6,474
  7,194
  7,951
  8,744
  9,573
  10,438
  11,338
  12,276
  13,250
  14,264
  15,316
  16,410
  17,548
  18,729
  19,958
  21,237
  22,567
  23,952
Tax expense, $m
  100
  159
  223
  297
  382
  479
  587
  707
  838
  980
  1,133
  1,389
  1,563
  1,748
  1,942
  2,147
  2,361
  2,585
  2,818
  3,061
  3,314
  3,578
  3,851
  4,135
  4,431
  4,738
  5,057
  5,389
  5,734
  6,093
  6,467
Net income, $m
  1,026
  430
  602
  803
  1,034
  1,295
  1,587
  1,910
  2,265
  2,649
  3,063
  3,756
  4,227
  4,726
  5,252
  5,804
  6,383
  6,988
  7,619
  8,277
  8,961
  9,673
  10,412
  11,181
  11,980
  12,810
  13,672
  14,570
  15,503
  16,474
  17,485

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  443
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  7,481
  9,157
  11,700
  14,683
  18,125
  22,039
  26,434
  31,310
  36,664
  42,490
  48,780
  55,522
  62,706
  70,322
  78,360
  86,814
  95,676
  104,946
  114,621
  124,705
  135,202
  146,121
  157,472
  169,269
  181,528
  194,268
  207,509
  221,277
  235,596
  250,495
  266,005
Adjusted assets (=assets-cash), $m
  7,038
  9,157
  11,700
  14,683
  18,125
  22,039
  26,434
  31,310
  36,664
  42,490
  48,780
  55,522
  62,706
  70,322
  78,360
  86,814
  95,676
  104,946
  114,621
  124,705
  135,202
  146,121
  157,472
  169,269
  181,528
  194,268
  207,509
  221,277
  235,596
  250,495
  266,005
Revenue / Adjusted assets
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
Average production assets, $m
  1,265
  1,648
  2,105
  2,642
  3,262
  3,966
  4,757
  5,634
  6,598
  7,646
  8,778
  9,991
  11,284
  12,655
  14,101
  15,622
  17,217
  18,885
  20,626
  22,441
  24,330
  26,295
  28,337
  30,460
  32,666
  34,959
  37,342
  39,819
  42,396
  45,077
  47,868
Working capital, $m
  -124
  -502
  -641
  -804
  -993
  -1,207
  -1,448
  -1,715
  -2,008
  -2,327
  -2,672
  -3,041
  -3,434
  -3,851
  -4,292
  -4,755
  -5,240
  -5,748
  -6,278
  -6,830
  -7,405
  -8,003
  -8,624
  -9,271
  -9,942
  -10,640
  -11,365
  -12,119
  -12,903
  -13,719
  -14,569
Total debt, $m
  2,570
  3,520
  4,880
  6,476
  8,318
  10,412
  12,763
  15,372
  18,236
  21,353
  24,718
  28,325
  32,169
  36,243
  40,544
  45,066
  49,808
  54,767
  59,943
  65,338
  70,954
  76,796
  82,868
  89,180
  95,738
  102,554
  109,638
  117,004
  124,665
  132,636
  140,934
Total liabilities, $m
  3,948
  4,899
  6,259
  7,855
  9,697
  11,791
  14,142
  16,751
  19,615
  22,732
  26,097
  29,704
  33,548
  37,622
  41,923
  46,445
  51,187
  56,146
  61,322
  66,717
  72,333
  78,175
  84,247
  90,559
  97,117
  103,933
  111,017
  118,383
  126,044
  134,015
  142,313
Total equity, $m
  3,532
  4,258
  5,440
  6,827
  8,428
  10,248
  12,292
  14,559
  17,049
  19,758
  22,683
  25,818
  29,158
  32,700
  36,438
  40,368
  44,490
  48,800
  53,299
  57,988
  62,869
  67,946
  73,224
  78,710
  84,410
  90,334
  96,492
  102,894
  109,552
  116,480
  123,692
Total liabilities and equity, $m
  7,480
  9,157
  11,699
  14,682
  18,125
  22,039
  26,434
  31,310
  36,664
  42,490
  48,780
  55,522
  62,706
  70,322
  78,361
  86,813
  95,677
  104,946
  114,621
  124,705
  135,202
  146,121
  157,471
  169,269
  181,527
  194,267
  207,509
  221,277
  235,596
  250,495
  266,005
Debt-to-equity ratio
  0.728
  0.830
  0.900
  0.950
  0.990
  1.020
  1.040
  1.060
  1.070
  1.080
  1.090
  1.100
  1.100
  1.110
  1.110
  1.120
  1.120
  1.120
  1.120
  1.130
  1.130
  1.130
  1.130
  1.130
  1.130
  1.140
  1.140
  1.140
  1.140
  1.140
  1.140
Adjusted equity ratio
  0.439
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,026
  430
  602
  803
  1,034
  1,295
  1,587
  1,910
  2,265
  2,649
  3,063
  3,756
  4,227
  4,726
  5,252
  5,804
  6,383
  6,988
  7,619
  8,277
  8,961
  9,673
  10,412
  11,181
  11,980
  12,810
  13,672
  14,570
  15,503
  16,474
  17,485
Depreciation, amort., depletion, $m
  346
  479
  517
  562
  613
  672
  738
  811
  892
  979
  1,073
  833
  940
  1,055
  1,175
  1,302
  1,435
  1,574
  1,719
  1,870
  2,027
  2,191
  2,361
  2,538
  2,722
  2,913
  3,112
  3,318
  3,533
  3,756
  3,989
Funds from operations, $m
  337
  909
  1,120
  1,365
  1,647
  1,967
  2,325
  2,722
  3,156
  3,628
  4,136
  4,588
  5,167
  5,780
  6,427
  7,106
  7,818
  8,562
  9,338
  10,147
  10,989
  11,864
  12,774
  13,719
  14,702
  15,723
  16,784
  17,888
  19,036
  20,230
  21,474
Change in working capital, $m
  -102
  -117
  -139
  -163
  -189
  -214
  -241
  -267
  -293
  -319
  -344
  -369
  -393
  -417
  -440
  -463
  -485
  -508
  -530
  -552
  -575
  -598
  -622
  -646
  -671
  -698
  -725
  -754
  -784
  -816
  -849
Cash from operations, $m
  439
  1,026
  1,259
  1,528
  1,836
  2,181
  2,566
  2,989
  3,449
  3,947
  4,481
  4,957
  5,561
  6,198
  6,867
  7,569
  8,303
  9,070
  9,868
  10,699
  11,564
  12,462
  13,395
  14,365
  15,373
  16,421
  17,509
  18,642
  19,820
  21,046
  22,323
Maintenance CAPEX, $m
  0
  -105
  -137
  -175
  -220
  -272
  -331
  -396
  -470
  -550
  -637
  -731
  -833
  -940
  -1,055
  -1,175
  -1,302
  -1,435
  -1,574
  -1,719
  -1,870
  -2,027
  -2,191
  -2,361
  -2,538
  -2,722
  -2,913
  -3,112
  -3,318
  -3,533
  -3,756
New CAPEX, $m
  -80
  -383
  -458
  -537
  -619
  -704
  -791
  -877
  -964
  -1,048
  -1,132
  -1,213
  -1,293
  -1,371
  -1,447
  -1,521
  -1,595
  -1,668
  -1,741
  -1,815
  -1,889
  -1,965
  -2,043
  -2,123
  -2,206
  -2,293
  -2,383
  -2,477
  -2,577
  -2,681
  -2,791
Cash from investing activities, $m
  -2,191
  -488
  -595
  -712
  -839
  -976
  -1,122
  -1,273
  -1,434
  -1,598
  -1,769
  -1,944
  -2,126
  -2,311
  -2,502
  -2,696
  -2,897
  -3,103
  -3,315
  -3,534
  -3,759
  -3,992
  -4,234
  -4,484
  -4,744
  -5,015
  -5,296
  -5,589
  -5,895
  -6,214
  -6,547
Free cash flow, $m
  -1,752
  538
  664
  816
  996
  1,205
  1,445
  1,715
  2,016
  2,349
  2,712
  3,013
  3,435
  3,887
  4,366
  4,873
  5,407
  5,967
  6,553
  7,166
  7,805
  8,470
  9,162
  9,881
  10,629
  11,406
  12,213
  13,053
  13,925
  14,832
  15,776
Issuance/(repayment) of debt, $m
  424
  1,133
  1,360
  1,596
  1,842
  2,094
  2,351
  2,609
  2,865
  3,117
  3,365
  3,607
  3,844
  4,075
  4,301
  4,523
  4,742
  4,959
  5,176
  5,395
  5,616
  5,842
  6,073
  6,311
  6,559
  6,816
  7,084
  7,366
  7,661
  7,971
  8,298
Issuance/(repurchase) of shares, $m
  632
  556
  580
  584
  567
  526
  456
  357
  225
  60
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,031
  1,689
  1,940
  2,180
  2,409
  2,620
  2,807
  2,966
  3,090
  3,177
  3,365
  3,607
  3,844
  4,075
  4,301
  4,523
  4,742
  4,959
  5,176
  5,395
  5,616
  5,842
  6,073
  6,311
  6,559
  6,816
  7,084
  7,366
  7,661
  7,971
  8,298
Total cash flow (excl. dividends), $m
  -719
  2,226
  2,604
  2,996
  3,405
  3,825
  4,252
  4,680
  5,106
  5,526
  6,077
  6,620
  7,279
  7,961
  8,667
  9,396
  10,148
  10,926
  11,730
  12,561
  13,421
  14,311
  15,234
  16,192
  17,187
  18,222
  19,298
  20,418
  21,586
  22,803
  24,073
Retained Cash Flow (-), $m
  -1,553
  -986
  -1,182
  -1,387
  -1,601
  -1,820
  -2,043
  -2,267
  -2,490
  -2,709
  -2,925
  -3,135
  -3,341
  -3,541
  -3,738
  -3,931
  -4,121
  -4,310
  -4,499
  -4,689
  -4,881
  -5,077
  -5,278
  -5,486
  -5,700
  -5,924
  -6,157
  -6,402
  -6,658
  -6,928
  -7,212
Prev. year cash balance distribution, $m
 
  260
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,500
  1,422
  1,609
  1,804
  2,005
  2,209
  2,413
  2,616
  2,817
  3,152
  3,485
  3,938
  4,420
  4,929
  5,465
  6,027
  6,616
  7,231
  7,872
  8,539
  9,234
  9,956
  10,707
  11,487
  12,298
  13,140
  14,016
  14,927
  15,875
  16,861
Discount rate, %
 
  6.50
  6.83
  7.17
  7.52
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.43
  17.25
  18.11
  19.01
  19.96
  20.96
  22.01
  23.11
  24.27
  25.48
  26.75
PV of cash for distribution, $m
 
  1,409
  1,246
  1,307
  1,350
  1,371
  1,369
  1,345
  1,299
  1,234
  1,206
  1,152
  1,112
  1,052
  977
  889
  793
  693
  594
  498
  408
  327
  256
  195
  146
  106
  75
  51
  34
  22
  14
Current shareholders' claim on cash, %
  100
  94.0
  89.4
  85.9
  83.3
  81.4
  80.0
  79.2
  78.7
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6
  78.6

Open Text Corporation provides a platform and suite of software products and services that assist organizations in finding, utilizing, and sharing business information from any device. The Company designs, develops, markets and sells Enterprise Information Management (EIM) software and solutions. Its EIM offerings include Enterprise Content Management (ECM), Business Process Management (BPM), Customer Experience Management (CEM), Business Network, Discovery and Analytics. Its software and services allow organizations to manage the information that flows into, out of, and throughout the enterprise as part of daily operations. Its solutions incorporate collaborative and mobile technologies and are delivered for on-premises deployment, as well as through cloud, hybrid and managed hosted services models. In addition, the Company provides solutions that facilitate the exchange of information and transactions that occur between supply chain participants.

FINANCIAL RATIOS  of  Open Text (OTEX)

Valuation Ratios
P/E Ratio 9.1
Price to Sales 4.1
Price to Book 2.6
Price to Tangible Book
Price to Cash Flow 21.3
Price to Free Cash Flow 26
Growth Rates
Sales Growth Rate 25.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 14.3%
Cap. Spend. - 3 Yr. Gr. Rate 13.8%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 67.6%
Total Debt to Equity 72.8%
Interest Coverage 11
Management Effectiveness
Return On Assets 17.9%
Ret/ On Assets - 3 Yr. Avg. 10.6%
Return On Total Capital 20.1%
Ret/ On T. Cap. - 3 Yr. Avg. 11.7%
Return On Equity 37.2%
Return On Equity - 3 Yr. Avg. 21.9%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 66.7%
Gross Margin - 3 Yr. Avg. 67.7%
EBITDA Margin 69.3%
EBITDA Margin - 3 Yr. Avg. 43.9%
Operating Margin 53.6%
Oper. Margin - 3 Yr. Avg. 30.9%
Pre-Tax Margin 49.1%
Pre-Tax Margin - 3 Yr. Avg. 26.5%
Net Profit Margin 44.8%
Net Profit Margin - 3 Yr. Avg. 24.3%
Effective Tax Rate 8.9%
Eff/ Tax Rate - 3 Yr. Avg. 7.7%
Payout Ratio 11.8%

OTEX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the OTEX stock intrinsic value calculation we used $2291 million for the last fiscal year's total revenue generated by Open Text. The default revenue input number comes from 2017 income statement of Open Text. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our OTEX stock valuation model: a) initial revenue growth rate of 30.3% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6.5%, whose default value for OTEX is calculated based on our internal credit rating of Open Text, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Open Text.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of OTEX stock the variable cost ratio is equal to 79.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for OTEX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.9% for Open Text.

Corporate tax rate of 27% is the nominal tax rate for Open Text. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the OTEX stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for OTEX are equal to 55.2%.

Life of production assets of 12 years is the average useful life of capital assets used in Open Text operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for OTEX is equal to -16.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $3532 million for Open Text - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 264.368 million for Open Text is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Open Text at the current share price and the inputted number of shares is $9.4 billion.

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COMPANY NEWS

▶ File-sharing pioneer once known as YouSendIt acquired by OpenText   [Feb-15-18 10:14AM  American City Business Journals]
▶ OpenText Acquires Hightail   [09:00AM  PR Newswire]
▶ OpenText Acquires Hightail   [09:00AM  CNW Group]
▶ Why Shares of Open Text Are Surging Today   [Feb-01-18 01:01PM  Motley Fool]
▶ Revenue Gains Accelerate at OpenText   [Jan-31-18 07:45PM  Motley Fool]
▶ Open Text posts 2Q profit   [04:38PM  Associated Press]
▶ ETFs with exposure to Open Text Corp. : December 29, 2017   [Dec-29-17 12:24PM  Capital Cube]
▶ OpenText Added to S&P/TSX60 Index   [09:00AM  PR Newswire]
▶ Stocks Hold Modest Gains; Netflix Snaps Back; Bitcoin Volatile As Ever   [Dec-28-17 01:35PM  Investor's Business Daily]
▶ ETFs with exposure to Open Text Corp. : December 12, 2017   [Dec-12-17 01:53PM  Capital Cube]
▶ OpenText Expands Operations in India   [Dec-04-17 09:00AM  PR Newswire]
▶ Lycamobile Builds New Digital Back Office with OpenText   [Nov-28-17 09:00AM  PR Newswire]
▶ OpenText Joins Dell EMC Select Partner Program   [Nov-16-17 09:00AM  PR Newswire]
▶ OpenText Turns Customer Support Needs Into Faster Growth   [Nov-03-17 12:46PM  Motley Fool]
▶ Open Text beats 1Q profit forecasts   [Nov-02-17 04:45PM  Associated Press]
▶ Is Open Text Corporation (OTEX) Undervalued?   [Sep-21-17 09:40PM  Simply Wall St.]
▶ OpenText Buys Guidance Software   [Sep-14-17 09:00AM  PR Newswire]
▶ ETFs with exposure to Open Text Corp. : August 18, 2017   [Aug-18-17 05:46PM  Capital Cube]
▶ OpenText Finishes Its Fiscal Year With Solid Gains   [Aug-04-17 11:03AM  Motley Fool]
▶ Open Text posts 4Q profit   [Aug-03-17 07:49PM  Associated Press]
Financial statements of OTEX
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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