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Constellation SoftwareTSX:CSU -0.87%82 Debt-to-EBITDA is 1.48 as of Mar. 2026, which is 35% above its 10-year median of 1.10. GuruFocus rates TSX:CSU with a GF Score™ of 82/100 and a GF Value™ of C$5,644.06 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,716 Software companies, Constellation Software ranks worse than 63% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Constellation Software's Debt-to-EBITDA or its related term are showing as below:
TSX:CSU'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.45 Med: 1.1 Max: 2.54
Current: 1.93
During the past 13 years, the highest Debt-to-EBITDA Ratio of Constellation Software was 2.54. The lowest was 0.45. And the median was 1.10.
TSX:CSU's Debt-to-EBITDA is ranked worse than 63% of 1716
companies
in the Software industry
Industry Median: 1.08
vs TSX:CSU: 1.93
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Constellation Software Debt-to-EBITDA Related Terms
Constellation Software Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Constellation Software's Debt-to-EBITDA 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.
TSX:CSU vs UBER, SHOP, CRM: Debt-to-EBITDA Comparison
For the Software - Application subindustry, Constellation Software's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Constellation Software's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Constellation Software's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Constellation Software (TSX:CSU) has a Debt-to-EBITDA of 1.48 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Constellation Software. This is 35% above median its historical median of 1.10. Over the past decade, Constellation Software's Debt-to-EBITDA has ranged from 0.45 to 2.54. According to the industry distribution chart, Constellation Software ranks #1081 out of 1716 companies in the Software industry, placing it in the top 63%.
Is Constellation Software's Debt-to-EBITDA too high?
Constellation Software's current Debt-to-EBITDA of 1.48 is 35% above median its 10-year median of 1.10. Over the past 10 years, this metric has ranged from a low of 0.45 to a high of 2.54. The Software industry median Debt-to-EBITDA is 1.08. Constellation Software's value of 1.48 is 37% above this industry median. Based on the distribution chart, Constellation Software ranks #1081 out of 1716 companies in the Software industry, which is below the industry midpoint. Overall, Constellation Software has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Constellation Software's Debt-to-EBITDA compare to UBER and SHOP?
According to the Software industry distribution chart, Constellation Software ranks #1081 out of 1716 companies for Debt-to-EBITDA. This places Constellation Software in the lower half of its industry. The industry median Debt-to-EBITDA is 1.08. Constellation Software's value of 1.48 is 37% above this benchmark. Historically, Constellation Software's own Debt-to-EBITDA has ranged from 0.45 to 2.54 over the past decade. While the company's 10-year median is 1.10 vs. the industry median of 1.08, 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 Debt-to-EBITDA for a Software company?
The median Debt-to-EBITDA among Software companies is 1.08, based on 1,716 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Software's current Debt-to-EBITDA of 1.48 is 37% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Constellation Software. For the Software industry, the median Debt-to-EBITDA is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Software's current Debt-to-EBITDA is 1.48, which is 35% above median its own 10-year median of 1.10. 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 (TSX:CSU) is currently considered Significantly Undervalued. The stock's GF Value™ is C$5,644.06, compared to a current price of C$2,800.76 — trading 50.4% below its estimated fair value. The current Debt-to-EBITDA is 1.48, which is 35% above median its 10-year median of 1.10 and 37% above the Software industry median of 1.08. Constellation Software's overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Constellation Software (TSX:CSU), the current Debt-to-EBITDA is 1.48 as of Mar. 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 (TSX:CSU) Overvalued in 2026?
Based on GuruFocus' analysis, Constellation Software stock appears to be undervalued.
The current stock price of C$2,800.76 is trading 50.4% below its estimated GF Value™ of C$5,644.06.
GuruFocus considers Constellation Software to be Significantly Undervalued.
Key valuation signals for TSX:CSU:
Debt-to-EBITDA: 1.48 (35% above median its 10-year median of 1.10)
GF Value™: C$5,644.06 vs. price of C$2,800.76 (50.4% below fair value)
Industry Position: 37% above the Software median (#1081 of 1716)
No single metric tells the full story. See the TSX:CSU 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.
82GF Score
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