Calculating The Fair Value Of Constellation Software Inc. (TSE:CSU)
Aug 29
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Canadian (TSX) Software Industry Analysis
UpdatedAug 31, 2025
DataAggregated Company Financials
Companies78
- 7D-0.5%
- 3M-6.0%
- 1Y8.6%
- YTD2.4%
The Software is pretty flat in the last 7 days, but HIVE Digital Technologies has stood out, gaining 16%. As for the the longer term, the industry is up 8.6% over the past 12 months. Earnings are forecast to grow by 21% annually.
Industry Valuation and Performance
Has the Canadian Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 31 Aug 2025 | CA$156.5b | CA$25.1b | CA$235.8m | 60.6x | 663.5x | 6.2x |
| Tue, 29 Jul 2025 | CA$168.9b | CA$24.3b | CA$165.6m | 53.9x | 1020x | 6.9x |
| Thu, 26 Jun 2025 | CA$163.7b | CA$24.3b | CA$185.3m | 44.3x | 883.3x | 6.7x |
| Sat, 24 May 2025 | CA$163.5b | CA$24.2b | CA$166.1m | 34.7x | 984.2x | 6.7x |
| Mon, 21 Apr 2025 | CA$152.4b | CA$23.9b | CA$446.5m | 26.9x | 341.3x | 6.4x |
| Wed, 19 Mar 2025 | CA$152.3b | CA$24.7b | CA$89.8m | 26.2x | 1695.8x | 6.2x |
| Fri, 14 Feb 2025 | CA$162.1b | CA$23.8b | -CA$2,326,800,724.29 | 29.7x | -69.7x | 6.8x |
| Sun, 12 Jan 2025 | CA$146.8b | CA$24.1b | -CA$2,415,562,875.31 | 40.8x | -60.8x | 6.1x |
| Tue, 10 Dec 2024 | CA$158.6b | CA$23.7b | -CA$2,347,731,646.29 | 43.6x | -67.6x | 6.7x |
| Thu, 07 Nov 2024 | CA$144.1b | CA$22.6b | -CA$2,246,641,121.19 | 56.9x | -64.1x | 6.4x |
| Sat, 05 Oct 2024 | CA$142.3b | CA$22.0b | -CA$2,474,345,795.68 | 41.3x | -57.5x | 6.5x |
| Mon, 02 Sep 2024 | CA$143.4b | CA$21.8b | -CA$2,491,016,511.92 | 44.7x | -57.6x | 6.6x |
| Wed, 31 Jul 2024 | CA$145.6b | CA$21.6b | -CA$3,413,730,007.05 | 44.9x | -42.6x | 6.8x |
| Fri, 28 Jun 2024 | CA$132.3b | CA$21.7b | -CA$3,403,298,021.92 | 43.1x | -38.9x | 6.1x |
| Sun, 26 May 2024 | CA$132.5b | CA$21.6b | -CA$3,427,213,387.52 | 56.7x | -38.7x | 6.1x |
| Tue, 23 Apr 2024 | CA$127.7b | CA$21.0b | -CA$4,275,092,876.23 | 36.2x | -29.9x | 6.1x |
| Thu, 21 Mar 2024 | CA$122.7b | CA$20.6b | -CA$4,779,498,962.47 | 29.5x | -25.7x | 5.9x |
| Sat, 17 Feb 2024 | CA$122.7b | CA$19.8b | -CA$2,764,841,547.33 | 24.5x | -44.4x | 6.2x |
| Mon, 15 Jan 2024 | CA$120.1b | CA$19.9b | -CA$3,963,187,475.00 | 28.5x | -30.3x | 6.1x |
| Wed, 13 Dec 2023 | CA$114.3b | CA$20.1b | -CA$4,087,421,947.00 | 25.3x | -28x | 5.7x |
| Fri, 10 Nov 2023 | CA$103.7b | CA$19.9b | -CA$4,311,961,432.00 | 69.7x | -24x | 5.2x |
| Sun, 08 Oct 2023 | CA$101.8b | CA$19.4b | -CA$4,197,369,549.00 | 55.5x | -24.3x | 5.2x |
| Tue, 05 Sep 2023 | CA$105.6b | CA$19.4b | -CA$4,115,700,218.00 | 59.2x | -25.7x | 5.4x |
| Thu, 03 Aug 2023 | CA$101.2b | CA$18.4b | -CA$3,827,359,611.00 | 59x | -26.4x | 5.5x |
| Sat, 01 Jul 2023 | CA$104.1b | CA$18.2b | -CA$3,684,545,075.00 | 74.3x | -28.2x | 5.7x |
| Mon, 29 May 2023 | CA$100.1b | CA$18.3b | -CA$4,110,770,360.00 | 76.3x | -24.3x | 5.5x |
| Wed, 26 Apr 2023 | CA$96.9b | CA$17.5b | -CA$3,310,339,448.00 | 49.9x | -29.3x | 5.5x |
| Fri, 24 Mar 2023 | CA$90.6b | CA$16.6b | -CA$2,579,021,438.00 | 37.9x | -35.1x | 5.5x |
| Sun, 19 Feb 2023 | CA$90.2b | CA$16.4b | -CA$2,263,819,317.00 | 35.9x | -39.9x | 5.5x |
| Tue, 17 Jan 2023 | CA$85.0b | CA$16.1b | -CA$662,735,826.00 | 30.6x | -128.2x | 5.3x |
| Thu, 15 Dec 2022 | CA$81.0b | CA$16.3b | -CA$570,373,114.00 | 32.7x | -142.1x | 5x |
| Sat, 12 Nov 2022 | CA$78.0b | CA$15.9b | -CA$275,767,411.00 | 28.6x | -282.8x | 4.9x |
| Mon, 10 Oct 2022 | CA$75.2b | CA$15.4b | -CA$282,366,710.00 | 43.5x | -266.3x | 4.9x |
| Wed, 07 Sep 2022 | CA$76.6b | CA$15.0b | -CA$423,849,924.00 | 42x | -180.7x | 5.1x |
Price to Earnings Ratio
-180.7x
Current Industry PE
- Investors are optimistic on the Canadian Software industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 663x which is higher than its 3-year average PE of 73.6x.
- The industry is trading close to its 3-year average PS ratio of 5.9x.
Past Earnings Growth
- Total earnings for the Software industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 19% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the Canadian Tech industry?
| CA Market | 0.89% | |
| Tech | -0.081% | |
| Software | -0.47% | |
| Systems Software | 0.79% | |
| Application Software | -0.51% | |
Industry PE
- Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 38.2x.
- Analysts expect its future annual earnings growth (20.2%) to be largely in line with prior year's earnings growth.
- Investors are most pessimistic about the Systems Software industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 1.5x.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 40% over the next 5 years.
- In contrast, the Application Software industry is expected to see its earnings grow by 20% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| HIVE HIVE Digital Technologies | CA$4.04 | 16.1% +CA$128.6m | -4.7% | PE13.4x | |
| DND Dye & Durham | CA$11.69 | 12.2% +CA$85.3m | -15.5% | PS1.7x | |
| BB BlackBerry | CA$5.27 | 1.5% +CA$47.6m | 66.2% | PE230.4x | |
| BITF Bitfarms | CA$1.83 | 4.0% +CA$38.7m | -37.1% | PS3x | |
| ACT Aduro Clean Technologies | CA$15.72 | 5.5% +CA$28.4m | 152.7% | PS2110.5x |
