Constellation SoftwareMEX:CSUN -9.71%65 Interest Coverage is 7.66 as of Mar. 2026, which is 51% below its 10-year median of 15.73. GuruFocus rates MEX:CSUN with a GF Score™ of 65/100 and a GF Value™ of MXN67,444.26 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,706 Software companies, Constellation Software ranks worse than 68.58% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Constellation Software's
Operating Income
for the
three
months ended in Mar. 2026 was MXN9,395 Mil. Constellation Software's Interest Expense for the
three
months ended in Mar. 2026 was MXN-1,226 Mil.
Constellation Software's interest coverage for the quarter that ended in Mar. 2026 was 7.66.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Constellation Software's Interest Coverage or its related term are showing as below:
MEX:CSUN'
s Interest Coverage Range Over the Past 10 Years
Min: 6.63 Med: 15.73 Max: 21.24
Current: 8.37
MEX:CSUN's Interest Coverage is ranked worse than 68.58% of 1706
companies
in the Software industry
Industry Median: 24.695
vs MEX:CSUN: 8.37
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Constellation Software Interest Coverage Related Terms
Constellation Software Interest Coverage Historical Data
* Premium members only.
The historical data trend for Constellation Software's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:CSUN vs CRM, SHOP, UBER: Interest Coverage Comparison
For the Software - Application subindustry, Constellation Software's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Software Industry
For the Software industry and Technology sector, Constellation Software's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Constellation Software's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (MEX:CSUN) has a Interest Coverage of 7.66 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Constellation Software and its competitors. This is 51% below median its historical median of 15.73. Over the past decade, Constellation Software's Interest Coverage has ranged from 6.63 to 21.24. According to the industry distribution chart, Constellation Software ranks #1170 out of 1706 companies in the Software industry, placing it in the top 68.6%.
Is Constellation Software's Interest Coverage too high?
Constellation Software's current Interest Coverage of 7.66 is 51% below median its 10-year median of 15.73. Over the past 10 years, this metric has ranged from a low of 6.63 to a high of 21.24. The Software industry median Interest Coverage is 24.70. Constellation Software's value of 7.66 is 69% below this industry median. Based on the distribution chart, Constellation Software ranks #1170 out of 1706 companies in the Software industry, which is below the industry midpoint. Overall, Constellation Software has a GF Score™ of 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Constellation Software's Interest Coverage compare to CRM and SHOP?
According to the Software industry distribution chart, Constellation Software ranks #1170 out of 1706 companies for Interest Coverage. This places Constellation Software in the lower half of its industry. The industry median Interest Coverage is 24.70. Constellation Software's value of 7.66 is 69% below this benchmark. Historically, Constellation Software's own Interest Coverage has ranged from 6.63 to 21.24 over the past decade. While the company's 10-year median is 15.73 vs. the industry median of 24.70, Constellation Software has consistently been below 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.70, based on 1,706 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Software's current Interest Coverage of 7.66 is 69% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Constellation Software and its competitors. For the Software industry, the median Interest Coverage is 24.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Software's current Interest Coverage is 7.66, which is 51% below median its own 10-year median of 15.73. 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 (MEX:CSUN) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN67,444.26, compared to a current price of MXN33,833.42 — trading 49.8% below its estimated fair value. The current Interest Coverage is 7.66, which is 51% below median its 10-year median of 15.73 and 69% below the Software industry median of 24.70. Constellation Software's overall GF Score™ is 65/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Constellation Software (MEX:CSUN), the current Interest Coverage is 7.66 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 (MEX:CSUN) Overvalued in 2026?
Based on GuruFocus' analysis, Constellation Software stock appears to be undervalued.
The current stock price of MXN33,833.42 is trading 49.8% below its estimated GF Value™ of MXN67,444.26.
GuruFocus considers Constellation Software to be Significantly Undervalued.
Key valuation signals for MEX:CSUN:
Interest Coverage: 7.66 (51% below median its 10-year median of 15.73)
GF Value™: MXN67,444.26 vs. price of MXN33,833.42 (49.8% below fair value)
Industry Position: 69% below the Software median (#1170 of 1706)
No single metric tells the full story. See the MEX:CSUN 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.
65GF Score
Get the complete analysis for MEX:CSUN
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:CSUN has been successfully added to your 
