DCF Tool

OTEX

Open Text Corp – Software Publishers
OpenText, The Information Company™, enables organizations to gain insight through market leading information management solutions, on-premises or in the cloud.
Analysis Results
Intrinsic Value $84.49
Latest Price $26.44
Relative Value 69% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 9.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 0.933 0.873
2024 1.02 0.891
2025 1.11 0.91
2026 1.22 0.929
2027 1.33 0.949
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 27.3 billion. This corresponds to a present value of 18.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.55 billion. Adding in the terminal value gives a total present value of 22.8 billion.

There are presently 270.0 million outstanding shares, so the intrinsic value per share is 84.49.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,285,367,000
Current Cash 1,693,741,000
Current Liabilities 1,468,258,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) -866,632,000
Change in NCWC -109,482,000
EBIT 750,348,000
Tax Provision 118,752,000
Depreciation and Amortization 503,953,000
Capital Expenditure -93,109,000
Unlevered Free Cash Flow 879,028,941
Current Assets 2,202,060,000
Current Cash 1,607,306,000
Current Liabilities 1,361,904,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) -757,150,000
Change in NCWC -156,466,000
EBIT 805,548,000
Tax Provision 339,906,000
Depreciation and Amortization 520,605,000
Capital Expenditure -63,675,000
Unlevered Free Cash Flow 685,263,350
Current Assets 2,386,399,000
Current Cash 1,692,850,000
Current Liabilities 1,904,233,000
Current Debt 610,000,000
Non-Cash Working Capital (NCWC) -600,684,000
Change in NCWC -216,286,000
EBIT 612,657,000
Tax Provision 110,837,000
Depreciation and Amortization 514,734,000
Capital Expenditure -72,709,000
Unlevered Free Cash Flow 641,686,613
Current Assets 1,561,328,000
Current Cash 941,009,000
Current Liabilities 1,014,717,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) -384,398,000
Change in NCWC -44,437,000
EBIT 616,397,000
Tax Provision 154,937,000
Depreciation and Amortization 470,928,000
Capital Expenditure -63,837,000
Unlevered Free Cash Flow 762,282,189
Current Assets 1,327,580,000
Current Cash 682,942,000
Current Liabilities 994,599,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) -339,961,000
Change in NCWC 44,202,000
EBIT 540,619,000
Tax Provision 143,826,000
Depreciation and Amortization 456,929,000
Capital Expenditure -105,318,000
Unlevered Free Cash Flow 735,059,732
Current Assets 1,003,477,000
Current Cash 443,357,000
Current Liabilities 1,127,043,000
Current Debt 182,760,000
Non-Cash Working Capital (NCWC) -384,163,000
Change in NCWC -97,811,000
EBIT 416,550,000
Tax Provision -776,364,000
Depreciation and Amortization 345,715,000
Capital Expenditure -79,592,000
Unlevered Free Cash Flow 584,862,000
Current Assets 1,672,273,000
Current Cash 1,295,596,000
Current Liabilities 671,029,000
Current Debt 8,000,000
Non-Cash Working Capital (NCWC) -286,352,000
Change in NCWC -58,102,000
EBIT 403,409,000
Tax Provision 6,282,000
Depreciation and Amortization 242,368,000
Capital Expenditure -70,009,000
Unlevered Free Cash Flow 508,950,677
Current Assets 1,100,349,000
Current Cash 711,165,000
Current Liabilities 625,434,000
Current Debt 8,000,000
Non-Cash Working Capital (NCWC) -228,250,000
Change in NCWC -18,794,000
EBIT 361,534,000
Tax Provision 31,638,000
Depreciation and Amortization 240,147,000
Capital Expenditure -77,046,000
Unlevered Free Cash Flow 462,847,312
Current Assets 815,735,000
Current Cash 427,890,000
Current Liabilities 659,883,000
Current Debt 62,582,000
Non-Cash Working Capital (NCWC) -209,456,000
Change in NCWC 20,039,000
EBIT 331,842,000
Tax Provision 58,461,000
Depreciation and Amortization 186,177,000
Capital Expenditure -42,460,000
Unlevered Free Cash Flow 425,444,800
Current Assets 717,091,000
Current Cash 470,445,000
Current Liabilities 527,883,000
Current Debt 51,742,000
Non-Cash Working Capital (NCWC) -229,495,000
Change in NCWC -23,883,000
EBIT 221,699,000
Tax Provision 29,690,000
Depreciation and Amortization 186,851,000
Capital Expenditure -23,299,000
Unlevered Free Cash Flow 324,432,680
Current Assets 789,274,000
Current Cash 559,747,000
Current Liabilities 476,513,000
Current Debt 41,374,000
Non-Cash Working Capital (NCWC) -205,612,000
Change in NCWC -36,802,000
EBIT 173,883,000
Tax Provision 12,171,000
Depreciation and Amortization 159,485,000
Capital Expenditure -26,021,000
Unlevered Free Cash Flow 255,136,139

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