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Constellation SoftwareMEX:CSUN 89 Forward Rate of Return (Yacktman) % is 24.95% as of Mar. 2026, which is 7% above its 10-year median of 23.41. GuruFocus rates MEX:CSUN with a GF Score™ of 89/100 and a GF Value™ of MXN57,419.05. The stock has 4 warning signs investors should review. Among 1,374 Software companies, Constellation Software ranks better than 85.95% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Constellation Software's forward rate of return for was 24.95%.
The historical rank and industry rank for Constellation Software's Forward Rate of Return (Yacktman) % or its related term are showing as below:
MEX:CSUN'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 17.42 Med: 23.41 Max: 27.23
Current: 23.75
During the past 13 years, Constellation Software's highest Forward Rate of Return was 27.23. The lowest was 17.42. And the median was 23.41.
MEX:CSUN's Forward Rate of Return (Yacktman) % is ranked better than 85.95% of 1374
companies
in the Software industry
Industry Median: 13.285
vs MEX:CSUN: 23.75
Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Constellation Software (MEX:CSUN) Forward Rate of Return (Yacktman) % Explanation
Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.
Be Aware
In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.
Constellation Software Forward Rate of Return (Yacktman) % Related Terms
Constellation Software Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Constellation Software's Forward Rate of Return (Yacktman) % 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 Rate of Return (Yacktman) % Chart
MEX:CSUN vs QH, SHOP, UBER: Forward Rate of Return (Yacktman) % Comparison
For the Software - Application subindustry, Constellation Software's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % 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 Rate of Return (Yacktman) % vs Software Industry
For the Software industry and Technology sector, Constellation Software's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Constellation Software's Forward Rate of Return (Yacktman) % falls into.
Constellation Software Forward Rate of Return (Yacktman) % Calculation
Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
* 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.
What does a Forward Rate of Return (Yacktman) % of 24.95% mean?
Constellation Software (MEX:CSUN) has a Forward Rate of Return (Yacktman) % of 24.95% as of Mar. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Constellation Software and its competitors. This is near median its historical median of 23.41. Over the past decade, Constellation Software's Forward Rate of Return (Yacktman) % has ranged from 17.42 to 27.23. According to the industry distribution chart, Constellation Software ranks #193 out of 1374 companies in the Software industry, placing it in the top 14%.
Is Constellation Software's Forward Rate of Return (Yacktman) % too high?
Constellation Software's current Forward Rate of Return (Yacktman) % of 24.95% is near median its 10-year median of 23.41. Over the past 10 years, this metric has ranged from a low of 17.42 to a high of 27.23. The Software industry median Forward Rate of Return (Yacktman) % is 13.29. Constellation Software's value of 24.95% is 87.8% above this industry median. Based on the distribution chart, Constellation Software ranks #193 out of 1374 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Constellation Software has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does Constellation Software's Forward Rate of Return (Yacktman) % compare to QH and SHOP?
According to the Software industry distribution chart, Constellation Software ranks #193 out of 1374 companies for Forward Rate of Return (Yacktman) %. This places Constellation Software in the top 14% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 13.29. Constellation Software's value of 24.95% is 87.8% above this benchmark. Historically, Constellation Software's own Forward Rate of Return (Yacktman) % has ranged from 17.42 to 27.23 over the past decade. While the company's 10-year median is 23.41 vs. the industry median of 13.29, 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 Forward Rate of Return (Yacktman) % for a Software company?
The median Forward Rate of Return (Yacktman) % among Software companies is 13.29, based on 1,374 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Software's current Forward Rate of Return (Yacktman) % of 24.95% is 87.8% 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 Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Constellation Software and its competitors. For the Software industry, the median Forward Rate of Return (Yacktman) % is 13.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Software's current Forward Rate of Return (Yacktman) % is 24.95%, which is near median its own 10-year median of 23.41. 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?
Constellation Software (MEX:CSUN) has a current Forward Rate of Return (Yacktman) % of 24.95%. The stock's GF Value™ is MXN57,419.05, compared to a current price of MXN32,500.00 — trading 43.4% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 24.95%, which is near median its 10-year median of 23.41 and 87.8% above the Software industry median of 13.29. Constellation Software's overall GF Score™ is 89/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For Constellation Software (MEX:CSUN), the current Forward Rate of Return (Yacktman) % is 24.95% 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 MXN32,500.00 is trading 43.4% below its estimated GF Value™ of MXN57,419.05.
Key valuation signals for MEX:CSUN:
Forward Rate of Return (Yacktman) %: 24.95% (near median its 10-year median of 23.41)
GF Value™: MXN57,419.05 vs. price of MXN32,500.00 (43.4% below fair value)
Industry Position: 87.8% above the Software median (#193 of 1374)
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.
89GF Score
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