Constellation Software Inc.

TSX:CSU Stock Report

Market Cap: CA$96.4b

Constellation Software Valuation

Is CSU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CSU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CSU (CA$4547.45) is trading below our estimate of fair value (CA$5419.71)

Significantly Below Fair Value: CSU is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CSU?

Key metric: As CSU is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CSU. This is calculated by dividing CSU's market cap by their current earnings.
What is CSU's PE Ratio?
PE Ratio114.1x
EarningsUS$587.00m
Market CapUS$66.99b

Price to Earnings Ratio vs Peers

How does CSU's PE Ratio compare to its peers?

The above table shows the PE ratio for CSU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average99.8x
DSG Descartes Systems Group
72x15.5%CA$14.3b
TOI Topicus.com
78.4xn/aCA$9.8b
KXS Kinaxis
171.1x42.9%CA$5.0b
DCBO Docebo
77.6x38.7%CA$2.0b
CSU Constellation Software
114.1x27.9%CA$96.4b

Price-To-Earnings vs Peers: CSU is expensive based on its Price-To-Earnings Ratio (114.1x) compared to the peer average (99.8x).

Price to Earnings Ratio vs Industry

How does CSU's PE Ratio compare vs other companies in the CA Software Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GRDI Griid Infrastructure
3.3xn/aUS$70.78m
IDLE.X Generative AI Solutions
0.08xn/aUS$8.15m
LIQD Liquid Meta Capital Holdings
2.4xn/aUS$2.74m
SPAI Sparc Al
1xn/aUS$2.18m
CSU 114.1xIndustry Avg. 41.8xNo. of Companies8PE020406080100+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CSU is expensive based on its Price-To-Earnings Ratio (114.1x) compared to the Canadian Software industry average (41.8x).

Price to Earnings Ratio vs Fair Ratio

What is CSU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CSU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio114.1x
Fair PE Ratio76.5x

Price-To-Earnings vs Fair Ratio: CSU is expensive based on its Price-To-Earnings Ratio (114.1x) compared to the estimated Fair Price-To-Earnings Ratio (76.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CSU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$4,547.45
CA$4,972.28
+9.3%
11.3%CA$5,489.01CA$3,370.61n/a11
Dec ’25CA$4,734.16
CA$4,815.36
+1.7%
10.7%CA$5,296.90CA$3,279.37n/a11
Nov ’25CA$4,257.90
CA$4,487.21
+5.4%
18.2%CA$5,027.62CA$2,138.06n/a10
Oct ’25CA$4,350.00
CA$4,328.32
-0.5%
18.0%CA$4,909.32CA$2,071.73n/a10
Sep ’25CA$4,400.69
CA$4,312.82
-2.0%
18.0%CA$4,905.06CA$2,069.94n/a10
Aug ’25CA$4,179.53
CA$4,156.44
-0.6%
18.3%CA$5,008.23CA$2,126.75n/a10
Jul ’25CA$3,941.88
CA$3,953.50
+0.3%
16.8%CA$4,339.13CA$2,119.04n/a9
Jun ’25CA$3,791.07
CA$3,943.41
+4.0%
16.9%CA$4,324.28CA$2,111.79n/a9
May ’25CA$3,616.70
CA$4,147.62
+14.7%
3.0%CA$4,291.79CA$3,866.46n/a8
Apr ’25CA$3,664.97
CA$4,111.58
+12.2%
3.5%CA$4,306.55CA$3,805.79n/a8
Mar ’25CA$3,853.01
CA$3,697.33
-4.0%
10.6%CA$4,307.38CA$3,084.12n/a7
Feb ’25CA$3,746.86
CA$3,671.80
-2.0%
10.5%CA$4,261.29CA$3,051.13n/a7
Jan ’25CA$3,285.27
CA$3,210.99
-2.3%
6.0%CA$3,589.44CA$2,964.51n/a8
Dec ’24CA$3,226.00
CA$3,265.63
+1.2%
3.3%CA$3,397.35CA$3,075.82CA$4,734.168
Nov ’24CA$2,830.65
CA$3,185.71
+12.5%
3.7%CA$3,332.19CA$2,927.71CA$4,257.907
Oct ’24CA$2,804.07
CA$3,133.82
+11.8%
4.1%CA$3,301.98CA$2,863.29CA$4,350.007
Sep ’24CA$2,847.35
CA$3,139.69
+10.3%
4.4%CA$3,309.17CA$2,879.53CA$4,400.697
Aug ’24CA$2,761.71
CA$2,994.70
+8.4%
6.1%CA$3,263.64CA$2,705.14CA$4,179.537
Jul ’24CA$2,744.76
CA$2,949.97
+7.5%
4.7%CA$3,197.22CA$2,774.79CA$3,941.887
Jun ’24CA$2,740.02
CA$2,949.97
+7.7%
4.7%CA$3,197.22CA$2,774.79CA$3,791.077
May ’24CA$2,695.00
CA$2,808.30
+4.2%
7.0%CA$3,019.74CA$2,501.28CA$3,616.707
Apr ’24CA$2,540.91
CA$2,684.68
+5.7%
6.5%CA$2,996.41CA$2,447.07CA$3,664.977
Mar ’24CA$2,285.48
CA$2,516.69
+10.1%
7.2%CA$2,771.64CA$2,237.35CA$3,853.016
Feb ’24CA$2,373.06
CA$2,397.05
+1.0%
7.8%CA$2,743.47CA$2,214.61CA$3,746.867
Jan ’24CA$2,113.96
CA$2,371.51
+12.2%
4.9%CA$2,603.46CA$2,252.99CA$3,285.277
Dec ’23CA$2,199.96
CA$2,325.44
+5.7%
4.9%CA$2,580.09CA$2,232.77CA$3,226.007

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/24 21:50
End of Day Share Price 2024/12/24 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Constellation Software Inc. is covered by 22 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Harriet LiAccountability Research Corporation
Phillip HuangBarclays
Thanos MoschopoulosBMO Capital Markets Equity Research