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Constellation SoftwareTSX:CSU -2.08%82 EV-to-EBIT is 30.36 as of Jul. 23, 2026, which is 28% below its 10-year median of 42.00. GuruFocus rates TSX:CSU with a GF Score™ of 82/100 and a GF Value™ of C$5,673.06 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,770 Software companies, Constellation Software ranks worse than 75.42% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Constellation Software's Enterprise Value for the quarter that ended in Mar. 2026 was C$56,243 Mil.
Constellation Software's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was C$1,968 Mil.
* 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.
* 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.
For the Software - Application subindustry, Constellation Software's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, Constellation Software's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Constellation Software's EV-to-EBIT falls into.
Constellation Software's current Enterprise Value is C$59,755 Mil.
Constellation Software's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was C$1,968 Mil.
* 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 (TSX:CSU) has a EV-to-EBIT of 30.36 as of Jul. 23, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Constellation Software and its competitors. This is 28% below median its historical median of 42.00. Over the past decade, Constellation Software's EV-to-EBIT has ranged from 23.80 to 147.49. According to the industry distribution chart, Constellation Software ranks #1335 out of 1770 companies in the Software industry, placing it in the top 75.4%.
Is Constellation Software's EV-to-EBIT too high?
Constellation Software's current EV-to-EBIT of 30.36 is 28% below median its 10-year median of 42.00. Over the past 10 years, this metric has ranged from a low of 23.80 to a high of 147.49. The Software industry median EV-to-EBIT is 14.14. Constellation Software's value of 30.36 is 114.7% above this industry median. Based on the distribution chart, Constellation Software ranks #1335 out of 1770 companies in the Software industry, which is in the bottom quartile relative to peers. 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 EV-to-EBIT compare to UBER and SHOP?
According to the Software industry distribution chart, Constellation Software ranks #1335 out of 1770 companies for EV-to-EBIT. This places Constellation Software in the lower half of its industry. The industry median EV-to-EBIT is 14.14. Constellation Software's value of 30.36 is 114.7% above this benchmark. Historically, Constellation Software's own EV-to-EBIT has ranged from 23.80 to 147.49 over the past decade. While the company's 10-year median is 42.00 vs. the industry median of 14.14, 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 EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 14.14, based on 1,770 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Software's current EV-to-EBIT of 30.36 is 114.7% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Constellation Software and its competitors. For the Software industry, the median EV-to-EBIT is 14.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Software's current EV-to-EBIT is 30.36, which is 28% below median its own 10-year median of 42.00. 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$5,673.06, compared to a current price of C$2,603.13 — trading 54.1% below its estimated fair value. The current EV-to-EBIT is 30.36, which is 28% below median its 10-year median of 42.00 and 114.7% above the Software industry median of 14.14. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Constellation Software (TSX:CSU), the current EV-to-EBIT is 30.36 as of Jul. 23, 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$2,603.13 is trading 54.1% below its estimated GF Value™ of C$5,673.06.
GuruFocus considers Constellation Software to be Significantly Undervalued.
Key valuation signals for TSX:CSU:
EV-to-EBIT: 30.36 (28% below median its 10-year median of 42.00)
GF Value™: C$5,673.06 vs. price of C$2,603.13 (54.1% below fair value)
Industry Position: 114.7% above the Software median (#1335 of 1770)
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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