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CSU.TO (CSU) Fair Value & Analysis

Technology · CA · Market cap C$57.8B (≈ $41.8B) · ISIN CA21037X1006

What is CSU.TO really worth?

CT CSU.TO CSU · TO
PriceC$3,041
Fair ValueC$1,520
Upside−50.0%
Quality61/100

A solid business, but trading 100% above our fair value of C$1,520.

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Strengths

Healthy Growth (revenue 5y +24.4 %/yr)
Moderate debt · generates free cash flow
Wide moat 71/100

Risks

!Thin margins · 6.1% net margin
!Mixed vs. peers (7/15)
!Evidence only medium, so the estimate is less certain
!Weak on dividend: 3 out of 100

For context

·0.13% dividend yield
Evidence: Medium Range C$1,026 – C$2,014

Fair value as of: Aug 31, 2026

From 26 valuation models · updated 5 days ago

Fair value updated Aug 31, 2026, revised from C$1,517 to C$1,520 (+0.2%) since Aug 27, 2026. Share price −5.7% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (C$2,014). 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$1,026 to C$2,014) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

C$5,171 C$1,690 Fair Value C$1,520 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 31, 2026.

How to read this chart

60‑month range C$1,690 – C$5,171 · fair‑value band C$1,026 – C$2,014 · the C$3,041 price screens above the C$1,520 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 31, 2026.

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Analysis

CSU.TO (CSU) currently trades at C$3,041, while our model-based Fair Value estimate is C$1,520, implying the stock looks roughly 100.1% overvalued today. The Quality Score stands at 61/100 (solid quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of C$2,591 per share, and 5 of the 26 models we run sit above the C$3,041 price. Bear case: the Economic Profit group reads lowest at C$222.14, and 21 of the 26 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, CSU.TO 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 31, 2026

Our scenario range runs from C$1,026 (bear case) to C$2,014 (bull case); at C$3,041, 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 40% below its 52-week high and 39% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at −38% fair-value upside, at −50%, CSU screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly C$31.04 per share, which is 2.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF C$1,948 C$3,166 C$6,891 75
EPV C$696.72 C$820.04 C$927.94 74
Growth DCF C$1,839 C$3,525 C$6,861 74
All 26 models by family
DCF Models
FCF DCF C$1,948 C$3,166 C$6,891 75
Owner Earnings C$1,334 C$3,091 C$6,778 70
5Y Revenue Exit C$1,143 C$1,972 C$3,606 69
5Y EBITDA Exit C$2,038 C$3,863 C$7,280 71
5Y P/E Exit C$874.14 C$1,588 C$2,478 69
10Y Revenue Exit C$1,338 C$2,591 C$3,728 66
10Y EBITDA Exit C$2,012 C$4,366 C$8,818 64
10Y P/E Exit C$1,182 C$2,057 C$3,483 62
Earnings-Based
Graham-Dodd C$167.17 C$1,166 C$1,636 63
Lynch FV C$376.35 C$537.64 C$698.93 61
PEG = 1.0 C$376.35 C$537.64 C$698.93 57
EPV C$696.72 C$820.04 C$927.94 74
Dividend Discount
Gordon GGM C$37.47 C$77.91 C$123.60 66
DDM Multi-Stage C$37.47 C$65.70 C$81.77 66
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 66
EV/EBITDA C$2,084 C$2,792 C$3,501 67
EV/Revenue C$786.14 C$1,142 C$1,497 53
Asset-Based
NCAV (Graham) C$84.20 C$112.82 C$168.39 54
Growth DCF
Growth DCF C$1,839 C$3,525 C$6,861 74
Rev-Margin DCF C$1,143 C$2,195 C$3,801 70
Economic Profit
Residual Income C$166.66 C$222.14 C$676.23 65
ROIC Compounder C$861.91 C$1,233 C$1,732 71
Growth Earnings
Growth-Adj P/E C$570.59 C$815.13 C$1,060 67

Widest divergence: DCF Models (C$2,591) versus Dividend Discount (C$65.70). Highest evidence: FCF DCF (75).

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Key figures & financial health

P/E ratio 62.5
P/S ratio 2.75 P/E × margin
EPS (TTM) C$48.70 price ÷ EPS = P/E 62.5
Dividend yield 0.1% payout 8.2%
Net margin 4.4% FY2025
Return on equity 19.7% TTM
More key figures
Profitability
Return on assets (EBIT) 6.5% avg 5y
Operating margin 13.8% TTM
Growth
Revenue (TTM) C$12.1B TTM
Revenue growth (YoY) +19.9% 3y avg +21.3%
EPS growth (YoY) +170%
Balance sheet & cash flow
Free cash flow C$2.6B FY2025
Net debt C$2.7B FY2025 · ≈ 1.0 yrs of FCF

Figures from reported company fundamentals · as of Aug 31, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 62 · Market factors (momentum, volatility) 37

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 35
Price trend over the last 3–12 months (market factor)
52W Momentum 15
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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

CSU.TO reported revenue of $11.8B in FY2025 versus $5.1B in FY2021, a compound +23.4%/yr. Reported net income was $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. revenue 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. revenue 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. revenue 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%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+9.5% (9.4 + 0.1)
Revenue +23.4%/yr
FY21 $5.1B
FY22 $6.6B
FY23 $8.4B
FY24 $10.1B
FY25 $11.8B
Net income +13.9%/yr
FY21 $310M
FY22 $512M
FY23 $565M
FY24 $731M
FY25 $521M
Character of growth · EPS growth decomposed (2015-2025) +14.5 % p.a.
Revenue per share +21.1 %

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

EBIT margin +10.6 %
Tax rate −0.2 %
Residual (interest, one-offs) −14.4 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

CSU screens 100% overvalued. Compare with SAP SE →

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

Peer Group

Software - Application · 691 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 −50% · Below median
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) 62.5× · Pricier than 75% of peers
P/B 11.70× · Pricier than 75% of peers
P/S (TTM) 3.44× · Pricier than median
P/FCF 16.3× · Pricier than median
EV/EBITDA 17.6× · Pricier than median
PEG 0.53× · Cheaper than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE100 · sector 37
PAST79 · sector 12
HEALTH44 · sector 98
DIVIDEND3 · sector 28

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

Similar stocks

10 more Software - Application stocks, each showing price versus our Fair Value estimate (as of Aug 31, 2026).

Stock Price Fair Value vs Fair Value
SAP SE SAP €191.32 €169.59 −11%
Shopify Inc SHOP C$209.78 C$28.76 −86%
Uber Technologies, Inc UBER $78.82 $43.66 −45%
Salesforce, Inc CRM $252.05 $249.28 −1%
ServiceNow, Inc NOW $138.43 $43.73 −68%
Cadence Design Systems, Inc CDNS $340.39 $112.57 −67%
Snowflake Inc SNOW $329.11 $42.27 −87%
Adobe Inc ADBE $289.15 $454.04 +57%
Automatic Data Processing, Inc ADP $284.68 $177.51 −38%
Intuit Inc INTU $348.00 $363.46 +4%

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Frequently asked questions

Is CSU.TO (CSU) overvalued or undervalued?
As of Aug 31, 2026, our model estimates a fair value of C$1,520 versus a price of C$3,041, about −50% upside (overvalued).
What is the fair value of CSU?
Our model-based fair value for CSU.TO is C$1,520 (as of Aug 31, 2026), built from audited fundamentals. The current price: C$3,041.
What is the quality score of CSU?
CSU.TO 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 CSU.TO (CSU)?
CSU.TO reported trailing-twelve-month revenue of about C$12.1B (latest available figure, as of Aug 31, 2026).
What is the net profit margin of CSU?
The net profit margin of CSU.TO is about 6.1%, meaning it keeps roughly 6.1% of revenue as net income. Based on the latest reported figures.
Does CSU.TO pay a dividend?
CSU.TO currently shows a dividend yield of about 0.13% relative to its recent price (as of Aug 31, 2026).
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