Assessing Open Text (NasdaqGS:OTEX) Valuation As RSA Conference Security Updates Near

Open Text stock moves as RSA Conference appearance approaches

Open Text (NasdaqGS:OTEX) is drawing attention ahead of its March 23, 2026 appearance at the RSA Conference in San Francisco, where senior product leaders plan to discuss updates across the company’s security focused offerings.

See our latest analysis for Open Text.

At a share price of US$22.24, Open Text has seen a 1 day share price return of 2.82% and a 7 day share price return of 1.18%. However, its 30 day and year to date share price returns show declines of 10.21% and 29.93%, highlighting that recent weakness remains. The 1 year total shareholder return decline of 9.05% points to pressure that extends beyond the latest RSA focused interest.

If security and cloud software are on your radar after Open Text’s RSA appearance, it can be useful to compare against other names using a curated screener such as 66 profitable AI stocks that aren't just burning cash

With Open Text trading at US$22.24 and data pointing to a material discount to some intrinsic estimates, the key question is simple: is this genuine value on offer, or is the market already pricing in whatever growth lies ahead?

Most Popular Narrative: 44.4% Undervalued

With Open Text last closing at $22.24 versus a narrative fair value of $40.00, the widely followed view frames the stock as trading at a sizeable discount, built on a detailed set of earnings and cash flow assumptions.

Analysts are assuming Open Text's revenue will grow by 1.4% annually over the next 3 years. Analysts assume that profit margins will increase from 8.4% today to 16.0% in 3 years time.

Read the complete narrative.

Those headline assumptions are only the start. The full narrative layers in earnings growth, a lower future earnings multiple, and active buybacks to justify that valuation gap.

Result: Fair Value of $40.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this depends on cloud and AI growth offsetting legacy maintenance revenue pressure, as well as restructuring and M&A plans avoiding delays, cost overruns, or integration setbacks.

Find out about the key risks to this Open Text narrative.

Next Steps

With sentiment clearly split between concerns and potential upside, it makes sense to move quickly and check the underlying data yourself so you can form a clear view based on the 4 key rewards and 2 important warning signs.

Looking for more investment ideas?

If you want to widen your opportunity set beyond Open Text, it makes sense to scan the market now and see which other names fit your checklist.

• Spot potential mispriced opportunities early by reviewing the 58 high quality undervalued stocks before others catch on.
• Strengthen your defensiveness by checking companies in the 64 resilient stocks with low risk scores that score well on stability and downside protection.
• Hunt for less crowded opportunities by scanning the screener containing 25 high quality undiscovered gems that combine solid fundamentals with lower visibility.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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