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Constellation SoftwareFRA:W9C +2.15%80 Cyclically Adjusted PB Ratio is 32.81 as of Aug. 04, 2026, which is 41% below its 10-year median of 55.59. GuruFocus rates FRA:W9C with a GF Score™ of 80/100 and a GF Value™ of €3,618.68 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,573 Software companies, Constellation Software ranks worse than 97.77% on this metric.
The historical rank and industry rank for Constellation Software's Cyclically Adjusted PB Ratio or its related term are showing as below:
FRA:W9C'
s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 23.56 Med: 55.59 Max: 73.1
Current: 30.83
During the past years, Constellation Software's highest Cyclically Adjusted PB Ratio was 73.10. The lowest was 23.56. And the median was 55.59.
FRA:W9C's Cyclically Adjusted PB Ratio is ranked worse than 97.77% of 1573
companies
in the Software industry
Industry Median: 2.24
vs FRA:W9C: 30.83
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.
Constellation Software's adjusted book value per share data for the three months ended in Mar. 2026 was €158.534. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €59.35 for the trailing ten years ended in Mar. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Constellation Software (FRA:W9C) Cyclically Adjusted PB Ratio Explanation
Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.
Constellation Software Cyclically Adjusted PB Ratio Related Terms
Constellation Software Cyclically Adjusted PB Ratio Historical Data
* Premium members only.
The historical data trend for Constellation Software's Cyclically Adjusted PB Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Constellation Software Cyclically Adjusted PB Ratio Chart
FRA:W9C vs QH, SHOP, UBER: Cyclically Adjusted PB Ratio Comparison
For the Software - Application subindustry, Constellation Software's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Constellation Software Cyclically Adjusted PB Ratio vs Software Industry
For the Software industry and Technology sector, Constellation Software's Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where Constellation Software's Cyclically Adjusted PB Ratio falls into.
Constellation Software Cyclically Adjusted PB Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted PB Ratio of 32.81 mean?
Constellation Software (FRA:W9C) has a Cyclically Adjusted PB Ratio of 32.81 as of Aug. 04, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Constellation Software and its competitors. This is 41% below median its historical median of 55.59. Over the past decade, Constellation Software's Cyclically Adjusted PB Ratio has ranged from 23.56 to 73.10. According to the industry distribution chart, Constellation Software ranks #1538 out of 1573 companies in the Software industry, placing it in the top 97.8%.
Is Constellation Software's Cyclically Adjusted PB Ratio too high?
Constellation Software's current Cyclically Adjusted PB Ratio of 32.81 is 41% below median its 10-year median of 55.59. Over the past 10 years, this metric has ranged from a low of 23.56 to a high of 73.10. The Software industry median Cyclically Adjusted PB Ratio is 2.24. Constellation Software's value of 32.81 is 1364.7% above this industry median. Based on the distribution chart, Constellation Software ranks #1538 out of 1573 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Constellation Software has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Constellation Software's Cyclically Adjusted PB Ratio compare to QH and SHOP?
According to the Software industry distribution chart, Constellation Software ranks #1538 out of 1573 companies for Cyclically Adjusted PB Ratio. This places Constellation Software in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 2.24. Constellation Software's value of 32.81 is 1364.7% above this benchmark. Historically, Constellation Software's own Cyclically Adjusted PB Ratio has ranged from 23.56 to 73.10 over the past decade. While the company's 10-year median is 55.59 vs. the industry median of 2.24, Constellation Software has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for a Software company?
The median Cyclically Adjusted PB Ratio among Software companies is 2.24, based on 1,573 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Software's current Cyclically Adjusted PB Ratio of 32.81 is 1364.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Constellation Software and its competitors. For the Software industry, the median Cyclically Adjusted PB Ratio is 2.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Software's current Cyclically Adjusted PB Ratio is 32.81, which is 41% below median its own 10-year median of 55.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Constellation Software stock overvalued right now?
Based on GuruFocus' analysis, Constellation Software (FRA:W9C) is currently considered Significantly Undervalued. The stock's GF Value™ is €3,618.68, compared to a current price of €1,947.00 — trading 46.2% below its estimated fair value. The current Cyclically Adjusted PB Ratio is 32.81, which is 41% below median its 10-year median of 55.59 and 1364.7% above the Software industry median of 2.24. Constellation Software's overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For Constellation Software (FRA:W9C), the current Cyclically Adjusted PB Ratio is 32.81 as of Aug. 04, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Constellation Software (FRA:W9C) Overvalued in 2026?
Based on GuruFocus' analysis, Constellation Software stock appears to be undervalued.
The current stock price of €1,947.00 is trading 46.2% below its estimated GF Value™ of €3,618.68.
GuruFocus considers Constellation Software to be Significantly Undervalued.
Key valuation signals for FRA:W9C:
Cyclically Adjusted PB Ratio: 32.81 (41% below median its 10-year median of 55.59)
GF Value™: €3,618.68 vs. price of €1,947.00 (46.2% below fair value)
Industry Position: 1364.7% above the Software median (#1538 of 1573)
No single metric tells the full story. See the FRA:W9C stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Constellation Software is an acquirer, manager, and developer of vertical market software, or VMS, businesses globally. VMS differentiates from horizontal software in that it provides mission critical solutions within a specific industry for customers in a particular market. Constellation operates through a decentralized model in which each business operates as its own independent entity. Managers of individual businesses are incentivized to optimize their business for returns on invested capital and revenue growth. Excess cash generated by the individual businesses is repatriated to portfolio managers who focus on allocating as much capital as possible on new acquisitions. As of 2026, Constellation consisted of over 1,000 individual businesses.
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