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Constellation Software Inc (CSU) Fair Value & Analysis

Technology · CA · Market cap C$57.8B

CS Constellation Software Inc CSU · TO
PriceC$3,163
Fair ValueC$1,058
Upside-66.6%
Quality61/100
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Healthy Growth
Thin margins · 6.1% net margin
Moderate debt · generates free cash flow
0.14% dividend yield
Mixed vs. peers (7/15)
Wide moat 71/100
Evidence: Medium Range C$702.22 – C$1,413 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated yesterday

Fair value updated Aug 13, 2026, revised from C$491.67 to C$1,058 (+115.1%) since Jul 15, 2026. Share price +16.0% over the past month.

A solid business, but screening 67% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (C$1,413). The favourable scenario is already priced in.
  • Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (C$702.22 to C$1,413) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

C$5,171 C$1,662 Fair Value C$1,058 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range C$1,662 – C$5,171 · fair‑value band C$702.22 – C$1,413 · the C$3,163 price screens above the C$1,058 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Constellation Software Inc (CSU) currently trades at C$3,163, while our model-based Fair Value estimate is C$1,058, implying the stock looks roughly 66.6% overvalued today. The Quality Score stands at 61/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Constellation Software Inc generated revenue of C$12.1B at a net margin of 6.1%. Revenue grew 19.9% year over year. It earns a return on equity of 19.7%. Net debt stands at C$2.7B. Fundamentals as of Aug 13, 2026

Our scenario range runs from C$702.22 (bear case) to C$1,413 (bull case); at C$3,163, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 37% below its 52-week high and 44% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -40% fair-value upside, at -67%, CSU screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF C$1,839 C$3,525 C$6,861 80
Residual Income C$166.66 C$222.14 C$676.23 76
Rev-Margin DCF C$1,143 C$2,195 C$3,801 74
All 26 models by family
DCF Models
FCF DCF C$1,948 C$3,166 C$6,891 38
Owner Earnings C$1,334 C$3,091 C$6,778 31
5Y Revenue Exit C$1,143 C$1,972 C$3,606 39
5Y EBITDA Exit C$2,038 C$3,863 C$7,280 41
5Y P/E Exit C$874.14 C$1,588 C$2,478 38
10Y Revenue Exit C$1,338 C$2,591 C$3,728 36
10Y EBITDA Exit C$2,012 C$4,366 C$8,818 37
10Y P/E Exit C$1,182 C$2,057 C$3,483 35
Earnings-Based
Graham-Dodd C$167.17 C$1,166 C$1,636 54
Lynch FV C$376.35 C$537.64 C$698.93 50
PEG = 1.0 C$376.35 C$537.64 C$698.93 46
EPV C$696.72 C$820.04 C$927.94 59
Dividend Discount
Gordon GGM C$37.47 C$77.91 C$123.60 70
DDM Multi-Stage C$37.47 C$65.70 C$81.77 61
Multiples
P/E Multiple C$516.25 C$688.34 C$860.42 63
P/S Multiple C$313.44 C$417.92 C$522.40 58
P/B Multiple C$313.44 C$417.92 C$522.40 55
EV/EBIT C$1,597 C$2,144 C$2,691 53
EV/EBITDA C$2,084 C$2,792 C$3,501 54
EV/Revenue C$786.14 C$1,142 C$1,497 43
Asset-Based
NCAV (Graham) C$84.20 C$112.82 C$168.39 50
Growth DCF
Growth DCF C$1,839 C$3,525 C$6,861 80
Rev-Margin DCF C$1,143 C$2,195 C$3,801 74
Economic Profit
Residual Income C$166.66 C$222.14 C$676.23 76
ROIC Compounder C$861.91 C$1,233 C$1,732 72
Growth Earnings
Growth-Adj P/E C$570.59 C$815.13 C$1,060 68

Widest divergence: DCF Models (C$2,591) versus Dividend Discount (C$65.70). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) C$12.1B
Revenue growth (YoY) +19.9%
Net margin 6.1%
Return on equity 19.7%
Free cash flow C$2.6B FY2025
P/E ratio 64.9
More key figures
Operating margin 13.8%
EPS (TTM) C$48.70
Dividend yield 0.1%
EPS growth (YoY) +170%
Net debt C$2.7B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 62 · Market factors (momentum, volatility) 47

Profitability 44
Margins and returns on capital today
Quality Growth 62
Are margins and returns improving?
Cashflow 92
Earnings quality: real cash, not paper profit
Fin. Strength 52
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 59
Calm price path (market factor)
Momentum 56
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses to develop mission-critical software solutions for public and private sector markets. It is involved in the software licensing; and sale of hardware activities.

Full company description

Constellation Software Inc., together with its subsidiaries, acquires, builds, and manages vertical market software businesses to develop mission-critical software solutions for public and private sector markets. It is involved in the software licensing; and sale of hardware activities. The company also offers professional services consist of implementation services, custom programming, product training, managed services, and consulting services; maintenance and customer support services, and hosted software-as-a-service products; and other recurring services. It operates in Canada, the United States, the United Kingdom, Europe, and internationally. The company was incorporated in 1995 and is headquartered in Toronto, Canada.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Constellation Software Inc reported revenue of C$11.8B in FY2025 versus C$5.1B in FY2021, a compound +23.4%/yr. Reported net income was C$521M in FY2025, compounding +13.9%/yr from FY2021.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
C$11.8B
Latest YoY
+17.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+21.3%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+24.4%
Avg. growth/yr (22Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+25.4%
Revenue +23.4%/yr
FY21 C$5.1B
FY22 C$6.6B
FY23 C$8.4B
FY24 C$10.1B
FY25 C$11.8B
Net income +13.9%/yr
FY21 C$310M
FY22 C$512M
FY23 C$565M
FY24 C$731M
FY25 C$521M
Character of growth · EPS growth decomposed (2015-2025) +14.5 % p.a.
Revenue per share +21.1 pp

of which total revenue +21.1 pp · buybacks/dilution +0.0 pp

EBIT margin +10.6 pp
Tax rate −0.2 pp
Residual (interest, one-offs) −17.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

CSU screens 67% overvalued. Compare with SAP SE →

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Cite: Fair Value Calculator (2026). "Constellation Software Inc Fair Value". https://www.fairvalue-calculator.com/stock/CSU

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Software - Application · 713 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 61 · Above median
Fair Value upside −67% · Bottom 25%
Return on equity (TTM) 20% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 6% · Above median
Operating margin (TTM) 14% · Above median
Revenue growth 20% · Above median
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 1.12× · Higher than 75% of peers

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 64.9× · Pricier than 75% of peers
P/B 11.62× · Pricier than 75% of peers
P/S (TTM) 3.41× · Pricier than median
P/FCF 16.1× · Pricier than median
EV/EBITDA 17.5× · Pricier than median
PEG 0.53× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 4
FUTURE 100 · sector 38
PAST 79 · sector 13
HEALTH 44 · sector 98
DIVIDEND 3 · sector 27

VALUE 0: the price sits above our fair-value range.

Insider activity: 25/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Software - Application stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
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Shopify Inc SHOP C$209.78 C$28.76 -86%
Uber Technologies, Inc UBER $75.36 $43.66 -42%
Salesforce, Inc CRM $193.32 $249.28 +29%
ServiceNow, Inc NOW $124.94 $43.73 -65%
Cadence Design Systems, Inc CDNS $323.13 $112.57 -65%
Beijing Kingsoft Office Software, Inc 688111 ¥254.50 ¥81.23 -68%
Tata Elxsi Limited TATAELXSI ₹3,712 ₹2,519 -32%
Douzone Bizon Co 012510 120,000 KRW 92,181 KRW -23%
KFin Technologies Limited KFINTECH ₹922.00 ₹556.85 -40%

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Frequently asked questions

Is Constellation Software Inc (CSU) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of C$1,058 versus a price of C$3,163, about −67% (overvalued).
What is the fair value of CSU?
Our model-based fair value for Constellation Software Inc is C$1,058 (as of Aug 13, 2026), built from audited fundamentals. The current price is C$3,163.
What is the quality score of CSU?
Constellation Software Inc has a Quality Score of 61/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Constellation Software Inc (CSU)?
Constellation Software Inc reported trailing-twelve-month revenue of about C$12.1B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of CSU?
The net profit margin of Constellation Software Inc is about 6.1%, meaning it keeps roughly 6.1% of revenue as net income. Based on the latest reported figures.
Does Constellation Software Inc pay a dividend?
Constellation Software Inc currently shows a dividend yield of about 0.14% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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