Constellation Software Inc. (CSU.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+78.5%

CA$6,154.44

vs CA$3,447.02 price

Levered DCF

CA$5,746.43

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

3.76

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	97.81×	89.56×	92.9×	64.55×	126.83×	63.06×	61.77×	35.81×
P/B	14.28×	23.43×	28.18×	19.12×	37.41×	26.28×	30.73×	15.62×
P/S	4.31×	6.5×	6.24×	4.99×	7.7×	6.93×	5.89×	4.43×
EV / EBITDA	20.71×	25.22×	25.27×	19.86×	26.47×	22.96×	22.25×	17.07×
Gross margin	39.6%	35.9%	35.0%	35.1%	36.8%	37.6%	37.0%	37.1%
Operating margin	16.3%	5.8%	5.1%	5.5%	8.5%	9.4%	5.9%	4.6%
Net margin	4.4%	7.3%	6.7%	7.7%	6.1%	11.0%	9.5%	12.4%
Current ratio	0.96×	0.92×	0.61×	0.65×	0.75×	0.78×	0.61×	0.9×
Debt / equity	1.62×	1.62×	2.4×	1.34×	1.31×	0.69×	1.08×	0.43×
Interest coverage	6.39×	2.17×	2.21×	3.39×	6.49×	7.76×	4.92×	5.76×
Dividend yield	0.2%	0.1%	0.2%	0.3%	0.2%	0.3%	2.5%	0.6%
Payout ratio	16.6%	11.1%	15.3%	17.4%	27.0%	20.5%	152.3%	21.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	14.6%	26.2%	30.3%	29.6%	29.5%	41.7%	49.8%	43.6%
Return on invested capital	11.3%	4.9%	1.4%	5.4%	5.5%	11.2%	8.0%	6.7%
Return on assets	3.2%	5.7%	5.2%	6.4%	5.4%	10.0%	9.8%	12.9%
Free cash flow yield	5.0%	2.9%	3.1%	3.5%	3.1%	4.3%	3.4%	4.3%
Earnings yield	1.0%	1.1%	1.1%	1.5%	0.8%	1.6%	1.6%	2.8%
Enterprise value	CA$53.6B	CA$68B	CA$55.7B	CA$34.5B	CA$39.9B	CA$27.5B	CA$21B	CA$13.3B
Net debt / EBITDA	1.04×	0.95×	1.45×	0.86×	0.41×	-0.03×	0.44×	-0.28×
Cash conversion cycle (days)	-27	-17	-18	-18	-30	-32	-21	-21