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Constellation SoftwareTSX:CSU -0.56%80 EV-to-OCF is 17.68 as of Aug. 02, 2026, which is 30% below its 10-year median of 25.40. GuruFocus rates TSX:CSU with a GF Score™ of 80/100 and a GF Value™ of C$5,686.02 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,878 Software companies, Constellation Software ranks worse than 74.88% 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 C$68,204 Mil.
Constellation Software's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was C$3,857 Mil. Therefore, Constellation Software's EV-to-OCF for today is 17.68.
The historical rank and industry rank for Constellation Software's EV-to-OCF or its related term are showing as below:
TSX:CSU'
s EV-to-OCF Range Over the Past 10 Years
Min: 13.77 Med: 25.4 Max: 37.96
Current: 17.68
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.
TSX:CSU's EV-to-OCF is ranked worse than 74.88% of 2878
companies
in the Software industry
Industry Median: 6.66
vs TSX:CSU: 17.68
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 C$3002.99.
Constellation Software's Earnings per Share (Diluted) 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$48.241.
* 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 C$68,204 Mil.
Constellation Software's Cash Flow from Operations 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$3,857 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-OCF of 17.68 as of Aug. 02, 2026. This is 30% 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 #2155 out of 2878 companies in the Software industry, placing it in the top 74.9%.
Is Constellation Software's EV-to-OCF too high?
Constellation Software's current EV-to-OCF of 17.68 is 30% 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 6.66. Constellation Software's value of 17.68 is 165.5% above this industry median. Based on the distribution chart, Constellation Software ranks #2155 out of 2878 companies in the Software industry, which is below the industry midpoint. 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 EV-to-OCF compare to QH and SHOP?
According to the Software industry distribution chart, Constellation Software ranks #2155 out of 2878 companies for EV-to-OCF. This places Constellation Software in the lower half of its industry. The industry median EV-to-OCF is 6.66. Constellation Software's value of 17.68 is 165.5% 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 6.66, 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 6.66, based on 2,878 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 17.68 is 165.5% 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 6.66 — 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 17.68, which is 30% 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 (TSX:CSU) is currently considered Significantly Undervalued. The stock's GF Value™ is C$5,686.02, compared to a current price of C$3,002.99 — trading 47.2% below its estimated fair value. The current EV-to-OCF is 17.68, which is 30% below median its 10-year median of 25.40 and 165.5% above the Software industry median of 6.66. 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 EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Constellation Software (TSX:CSU), the current EV-to-OCF is 17.68 as of Aug. 02, 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$3,002.99 is trading 47.2% below its estimated GF Value™ of C$5,686.02.
GuruFocus considers Constellation Software to be Significantly Undervalued.
Key valuation signals for TSX:CSU:
EV-to-OCF: 17.68 (30% below median its 10-year median of 25.40)
GF Value™: C$5,686.02 vs. price of C$3,002.99 (47.2% below fair value)
Industry Position: 165.5% above the Software median (#2155 of 2878)
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.
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