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Constellation SoftwareFRA:W9C +1.22%86 EV-to-OCF is 16.39 as of Sep. 13, 2026, which is 35% below its 10-year median of 25.40. GuruFocus rates FRA:W9C with a GF Score™ of 86/100 and a GF Value™ of €3,559.79 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,876 Software companies, Constellation Software ranks worse than 73.5% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Constellation Software's Enterprise Value is €40,136 Mil.
Constellation Software's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was €2,448 Mil. Therefore, Constellation Software's EV-to-OCF for today is 16.39.
The historical rank and industry rank for Constellation Software's EV-to-OCF or its related term are showing as below:
FRA:W9C'
s EV-to-OCF Range Over the Past 10 Years
Min: 13.77 Med: 25.4 Max: 37.96
Current: 16.52
During the past 13 years, the highest EV-to-OCF of Constellation Software was 37.96. The lowest was 13.77. And the median was 25.40.
FRA:W9C's EV-to-OCF is ranked worse than 73.5% of 2876
companies
in the Software industry
Industry Median: 6.795
vs FRA:W9C: 16.52
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Constellation Software's PE Ratio (TTM) for today is calculated as:
Constellation Software's share price for today is €1744.00.
Constellation Software's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €39.063.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
* 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-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Software Industry
For the Software industry and Technology sector, Constellation Software's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Constellation Software's EV-to-OCF falls into.
Constellation Software's current Enterprise Value is €40,136 Mil.
Constellation Software's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €2,448 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 (FRA:W9C) has a EV-to-OCF of 16.39 as of Sep. 13, 2026. This is 35% below median its historical median of 25.40. Over the past decade, Constellation Software's EV-to-OCF has ranged from 13.77 to 37.96. According to the industry distribution chart, Constellation Software ranks #2114 out of 2876 companies in the Software industry, placing it in the top 73.5%.
Is Constellation Software's EV-to-OCF too high?
Constellation Software's current EV-to-OCF of 16.39 is 35% below median its 10-year median of 25.40. Over the past 10 years, this metric has ranged from a low of 13.77 to a high of 37.96. The Software industry median EV-to-OCF is 6.80. Constellation Software's value of 16.39 is 141.2% above this industry median. Based on the distribution chart, Constellation Software ranks #2114 out of 2876 companies in the Software industry, which is below the industry midpoint. Overall, Constellation Software has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Constellation Software's EV-to-OCF compare to CRM and SHOP?
According to the Software industry distribution chart, Constellation Software ranks #2114 out of 2876 companies for EV-to-OCF. This places Constellation Software in the lower half of its industry. The industry median EV-to-OCF is 6.80. Constellation Software's value of 16.39 is 141.2% above this benchmark. Historically, Constellation Software's own EV-to-OCF has ranged from 13.77 to 37.96 over the past decade. While the company's 10-year median is 25.40 vs. the industry median of 6.80, 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-OCF for a Software company?
The median EV-to-OCF among Software companies is 6.80, based on 2,876 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Software's current EV-to-OCF of 16.39 is 141.2% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median EV-to-OCF is 6.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Software's current EV-to-OCF is 16.39, which is 35% below median its own 10-year median of 25.40. 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 €3,559.79, compared to a current price of €1,744.00 — trading 51% below its estimated fair value. The current EV-to-OCF is 16.39, which is 35% below median its 10-year median of 25.40 and 141.2% above the Software industry median of 6.80. Constellation Software's overall GF Score™ is 86/100 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Constellation Software (FRA:W9C), the current EV-to-OCF is 16.39 as of Sep. 13, 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 €1,744.00 is trading 51% below its estimated GF Value™ of €3,559.79.
GuruFocus considers Constellation Software to be Significantly Undervalued.
Key valuation signals for FRA:W9C:
EV-to-OCF: 16.39 (35% below median its 10-year median of 25.40)
GF Value™: €3,559.79 vs. price of €1,744.00 (51% below fair value)
Industry Position: 141.2% above the Software median (#2114 of 2876)
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.
86GF Score
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