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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$3,213
Fair ValueC$491.67
Upside-84.7%
Quality56/100
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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$368.75 – C$804.46 Share as image

Fair value as of: Jul 15, 2026

From 26 valuation models · updated 23 days ago

Fair value updated Jul 15, 2026, revised from C$505.18 to C$491.67 (−2.7%) since Jun 24, 2026. Share price +12.8% over the past month.

A solid business, but screening 85% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (C$804.46). The favourable scenario is already priced in.
  • Solid but not exceptional quality (56/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (C$368.75 to C$804.46) 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$491.67 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range C$1,662 – C$5,171 · fair‑value band C$368.75 – C$804.46 · the C$3,213 price screens above the C$491.67 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

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Analysis

Constellation Software Inc (CSU) currently trades at C$3,213, while our model-based Fair Value estimate is C$491.67, implying the stock looks roughly 84.7% overvalued today. We read business quality at 56/100 (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 Jul 15, 2026

Our scenario range runs from C$368.75 (bear case) to C$804.46 (bull case); at C$3,213, 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 36% below its 52-week high and 46% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -27% fair-value upside, at -85%, 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 BearBaseBull 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$1,611 C$2,960 C$5,479 41
5Y P/E Exit C$767.53 C$1,328 C$2,010 38
10Y Revenue Exit C$1,338 C$2,591 C$3,728 36
10Y EBITDA Exit C$1,707 C$3,519 C$6,884 37
10Y P/E Exit C$1,106 C$1,846 C$3,018 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$368.75 C$491.67 C$614.59 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$1,187 C$1,597 C$2,007 53
EV/EBITDA C$1,493 C$2,005 C$2,517 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$491.44 C$702.05 C$912.67 68

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

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 61.0
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 Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 62 · Market factors (momentum, volatility) 48

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 58
Calm price path (market factor)
Momentum 59
Price trend over the last 3–12 months (market factor)
52W Momentum 18
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)
+21.3%
Avg. growth/yr (5Y)
+24.4%
Avg. growth/yr (22Y)
+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

CSU screens 85% 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

Earlier news

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

Peer Group

Software - Application · 709 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 56 · Above median
Fair Value upside −85% · 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) 54.9× · 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 0
FUTURE 100 · sector 37
PAST 79 · sector 13
HEALTH 44 · sector 98
DIVIDEND 3 · 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

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 Jul 15, 2026).

Stock Price Fair Value vs Fair Value
SAP SE SAPS C$12.69 C$16.26 +28%
Shopify Inc SHOP C$173.23 C$20.54 -88%
Uber Technologies, Inc UBER $72.67 $51.11 -30%
Salesforce, Inc CRM $170.77 $182.10 +7%
ServiceNow, Inc NOW $107.71 $33.12 -69%
Cadence Design Systems, Inc CDNS $384.17 $80.41 -79%
Snowflake Inc SNOW $271.87 $34.04 -87%
Adobe Inc ADBE $230.61 $379.48 +65%
Automatic Data Processing, Inc ADP $241.92 $177.51 -27%
Intuit Inc INTU $291.09 $258.69 -11%

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Frequently asked questions

Is Constellation Software Inc (CSU) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of C$491.67 versus a price of C$3,213, about −85% (overvalued).
What is the fair value of CSU?
Our model-based fair value for Constellation Software Inc is C$491.67 (as of Jul 15, 2026), built from audited fundamentals. The current price is C$3,213.
What is the quality score of CSU?
Constellation Software Inc has a Quality Score of 56/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals 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 Jul 15, 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 Jul 15, 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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