Added to YB: 2026-01-27
Pitch date: 2026-01-24
CSU.TO [bullish]
Constellation Software Inc.
-13.78%
current return
Author Info
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Company Info
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.
Market Cap
CAD 36.7B
Pitch Price
CAD 2.8K
Price Target
5.8K (+141%)
Dividend
0.23%
EV/EBITDA
19.52
P/E
53.40
EV/Sales
3.58
Sector
Software
Category
value
Constellation Software: DCF Valuation
CSU.TO: DCF analysis shows undervalued at C$2,781 vs C$3,643 intrinsic value (23.7% margin of safety). Multi-acquirer 'Berkshire of software' buying niche VMS businesses. 15% 2026E growth decelerating to 3% terminal. EBIT margins expanding 12% to 17% over 10 years. 18% incremental ROIC on acquisitions, 6.2% WACC. Bull case C$5,811 (+109% upside).
Read full article (10 min)