Constellation Software Inc.

DB:W9C Stock Report

Market Cap: €66.8b

Constellation Software Valuation

Is W9C 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 W9C when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€3.72k
Fair Value
16.6% undervalued intrinsic discount
11
Number of Analysts

Below Fair Value: W9C (€3100) is trading below our estimate of fair value (€3716.46)

Significantly Below Fair Value: W9C 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 W9C?

Key metric: As W9C is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for W9C. This is calculated by dividing W9C's market cap by their current earnings.
What is W9C's PE Ratio?
PE Ratio118x
EarningsUS$587.00m
Market CapUS$69.29b

Price to Earnings Ratio vs Peers

How does W9C's PE Ratio compare to its peers?

The above table shows the PE ratio for W9C vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average58.7x
SAP SAP
98x33.4%€312.4b
NEM Nemetschek
78.5x17.7%€13.4b
AOF ATOSS Software
43.3x6.8%€1.8b
TMV TeamViewer
15.1x10.4%€1.8b
W9C Constellation Software
117.5x24.6%€100.7b

Price-To-Earnings vs Peers: W9C is expensive based on its Price-To-Earnings Ratio (117.5x) compared to the peer average (58.7x).

Price to Earnings Ratio vs Industry

How does W9C's PE Ratio compare vs other companies in the European Software Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
W9C 118.0xIndustry Avg. 26.7xNo. of Companies21PE020406080100+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: W9C is expensive based on its Price-To-Earnings Ratio (117.5x) compared to the European Software industry average (26.7x).

Price to Earnings Ratio vs Fair Ratio

What is W9C'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.

W9C PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio118x
Fair PE Ratio45.8x

Price-To-Earnings vs Fair Ratio: W9C is expensive based on its Price-To-Earnings Ratio (117.5x) compared to the estimated Fair Price-To-Earnings Ratio (45.8x).

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 W9C forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€3,100.00
€3,326.93
+7.3%
11.5%€3,677.01€2,201.84n/a11
Jan ’26€3,050.00
€3,332.27
+9.3%
11.3%€3,678.56€2,258.88n/a11
Dec ’25€3,200.00
€3,249.84
+1.6%
10.7%€3,574.90€2,213.21n/a11
Nov ’25€2,730.00
€2,963.00
+8.5%
18.2%€3,319.85€1,411.81n/a10
Oct ’25€2,905.00
€2,898.25
-0.2%
18.0%€3,287.29€1,387.24n/a10
Sep ’25€2,840.00
€2,878.54
+1.4%
18.0%€3,273.83€1,381.56n/a10
Aug ’25€2,890.00
€2,776.74
-3.9%
18.3%€3,345.78€1,420.79n/a10
Jul ’25€2,710.00
€2,669.17
-1.5%
16.8%€2,929.52€1,430.65n/a9
Jun ’25€2,495.00
€2,662.30
+6.7%
16.9%€2,919.43€1,425.72n/a9
May ’25€2,450.00
€2,828.70
+15.5%
3.0%€2,927.02€2,636.94n/a8
Apr ’25€2,545.00
€2,791.50
+9.7%
3.5%€2,923.87€2,583.89n/a8
Mar ’25€2,560.00
€2,544.58
-0.6%
10.6%€2,964.43€2,122.56n/a7
Feb ’25€2,540.00
€2,527.49
-0.5%
10.5%€2,933.26€2,100.24€3,220.007
Jan ’25€2,265.00
€2,193.13
-3.2%
6.0%€2,451.61€2,024.77€3,050.008
Dec ’24€2,140.00
€2,174.23
+1.6%
3.3%€2,261.93€2,047.86€3,200.008
Nov ’24€1,912.00
€2,181.81
+14.1%
3.7%€2,282.13€2,005.11€2,730.007
Oct ’24€1,952.00
€2,173.24
+11.3%
4.1%€2,289.85€1,985.64€2,905.007
Sep ’24€1,882.00
€2,133.64
+13.4%
4.4%€2,248.82€1,956.85€2,840.007
Aug ’24€1,894.00
€2,052.49
+8.4%
6.1%€2,236.81€1,854.03€2,890.007
Jul ’24€1,870.00
€2,033.23
+8.7%
4.7%€2,203.64€1,912.49€2,710.007
Jun ’24€1,888.00
€2,033.23
+7.7%
4.7%€2,203.64€1,912.49€2,495.007
May ’24€1,762.00
€1,888.27
+7.2%
7.0%€2,030.44€1,681.83€2,450.007
Apr ’24€1,673.00
€1,831.27
+9.5%
6.5%€2,043.91€1,669.19€2,545.007
Mar ’24€1,587.00
€1,741.54
+9.7%
7.2%€1,917.96€1,548.23€2,560.006
Feb ’24€1,609.00
€1,652.03
+2.7%
7.8%€1,890.78€1,526.29€2,540.007
Analyst Price Target
Consensus Narrative from 11 Analysts
€3.26k
Fair Value
5.0% undervalued intrinsic discount
11
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/03 19:00
End of Day Share Price 2025/01/31 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