Constellation Software (TSX:CSU) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Constellation Software Forward PE Ratio Related Terms
Constellation Software Forward PE Ratio Historical Data
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The historical data trend for Constellation Software's Forward PE 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 Forward PE Ratio Chart
Constellation Software Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2020-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
20.58
20.79
22.68
20.33
27.86
30.03
35.34
26.32
31.55
32.73
20.45
Constellation Software Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2023-09
2023-12
2024-03
2024-06
2024-09
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
Forward PE Ratio
20.58
16.95
20.79
20.58
20.79
22.32
23.47
21.51
22.68
24.75
27.93
23.36
20.33
25.64
29.94
26.60
27.86
23.98
32.26
28.25
30.03
30.77
33.67
33.00
35.34
30.96
28.65
23.47
26.32
30.67
34.13
27.86
31.55
33.22
35.84
32.47
32.73
33.69
38.32
22.92
20.45
14.17
TSX:CSU vs UBER, SHOP, CRM: Forward PE Ratio Comparison
For the Software - Application subindustry, Constellation Software's Forward PE Ratio, along with its competitors' market caps and Forward PE 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 Forward PE Ratio vs Software Industry
For the Software industry and Technology sector, Constellation Software's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Constellation Software's Forward PE Ratio falls into.
Constellation Software Forward PE Ratio Calculation
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Constellation Software (TSX:CSU) has a Forward PE Ratio of 15.97 as of Jul. 12, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Constellation Software and its competitors. According to the industry distribution chart, Constellation Software ranks #500 out of 1171 companies in the Software industry, placing it in the top 42.7%.
Is Constellation Software's Forward PE Ratio too high?
Constellation Software's current Forward PE Ratio is 15.97. The Software industry median Forward PE Ratio is 18.62. Constellation Software's value of 15.97 is 14.2% below this industry median. Based on the distribution chart, Constellation Software ranks #500 out of 1171 companies in the Software industry, which is above the industry midpoint. Overall, Constellation Software has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Constellation Software's Forward PE Ratio compare to UBER and SHOP?
According to the Software industry distribution chart, Constellation Software ranks #500 out of 1171 companies for Forward PE Ratio. This puts Constellation Software in the upper half of its industry. The industry median Forward PE Ratio is 18.62. Constellation Software's value of 15.97 is 14.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Software company?
The median Forward PE Ratio among Software companies is 18.62, based on 1,171 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Software's current Forward PE Ratio of 15.97 is 14.2% below 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Constellation Software and its competitors. For the Software industry, the median Forward PE Ratio is 18.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Software's current Forward PE Ratio is 15.97. 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$5,648.94, compared to a current price of C$2,802.14 — trading 50.4% below its estimated fair value. The current Forward PE Ratio is 15.97 and 14.2% below the Software industry median of 18.62. Constellation Software's overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Constellation Software (TSX:CSU), the current Forward PE Ratio is 15.97 as of Jul. 12, 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$2,802.14 is trading 50.4% below its estimated GF Value™ of C$5,648.94.
GuruFocus considers Constellation Software to be Significantly Undervalued.
Key valuation signals for TSX:CSU:
Forward PE Ratio: 15.97
GF Value™: C$5,648.94 vs. price of C$2,802.14 (50.4% below fair value)
Industry Position: 14.2% below the Software median (#500 of 1171)
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.
81GF Score
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