Open Text Corporation’s (NASDAQ:OTEX) Intrinsic Value Is Potentially 84% Above Its Share Price
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Using the 2 Stage Free Cash Flow to Equity, Open Text fair value estimate is US$65.65
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Open Text is estimated to be 46% undervalued based on current share price of US$35.68
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Our fair value estimate is 89% higher than Open Text’s analyst price target of US$34.80
Today we will run through one way of estimating the intrinsic value of Open Text Corporation (NASDAQ:OTEX) by estimating the company’s future cash flows and discounting them to their present value. Our analysis will employ the Discounted Cash Flow (DCF) model. Before you think you won’t be able to understand it, just read on! It’s actually much less complex than you’d imagine.
We generally believe that a company’s value is the present value of all of the cash it…
