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Constellation SoftwareTSX:CSU -0.57%86 Shiller PE Ratio is 88.78 as of Sep. 05, 2026, which is 24% below its 10-year median of 116.67. GuruFocus rates TSX:CSU with a GF Score™ of 86/100 and a GF Value™ of C$5,746.71 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,019 Software companies, Constellation Software ranks worse than 84.99% on this metric.
The historical rank and industry rank for Constellation Software's Shiller PE Ratio or its related term are showing as below:
TSX:CSU'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 70.9 Med: 116.67 Max: 185.87
Current: 88.8
During the past years, Constellation Software's highest Shiller PE Ratio was 185.87. The lowest was 70.90. And the median was 116.67.
TSX:CSU's Shiller PE Ratio is ranked worse than 84.99% of 1019
companies
in the Software industry
Industry Median: 27.55
vs TSX:CSU: 88.80
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
Constellation Software's adjusted earnings per share data for the three months ended in Jun. 2026 was C$18.146. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is C$34.06 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Constellation Software (TSX:CSU) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
Constellation Software Shiller PE Ratio Related Terms
Constellation Software Shiller PE Ratio Historical Data
* Premium members only.
The historical data trend for Constellation Software's Shiller 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.
TSX:CSU vs CRM, SHOP, UBER: Shiller PE Ratio Comparison
For the Software - Application subindustry, Constellation Software's Shiller PE Ratio, along with its competitors' market caps and Shiller 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 Shiller PE Ratio vs Software Industry
For the Software industry and Technology sector, Constellation Software's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Constellation Software's Shiller PE Ratio falls into.
Constellation Software Shiller PE Ratio Calculation
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
* 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.
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Constellation Software (TSX:CSU) has a Shiller PE Ratio of 88.78 as of Sep. 05, 2026. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Constellation Software and its competitors. This is 24% below median its historical median of 116.67. Over the past decade, Constellation Software's Shiller PE Ratio has ranged from 70.90 to 185.87. According to the industry distribution chart, Constellation Software ranks #866 out of 1019 companies in the Software industry, placing it in the top 85%.
Is Constellation Software's Shiller PE Ratio too high?
Constellation Software's current Shiller PE Ratio of 88.78 is 24% below median its 10-year median of 116.67. Over the past 10 years, this metric has ranged from a low of 70.90 to a high of 185.87. The Software industry median Shiller PE Ratio is 27.55. Constellation Software's value of 88.78 is 222.3% above this industry median. Based on the distribution chart, Constellation Software ranks #866 out of 1019 companies in the Software industry, which is in the bottom quartile relative to peers. 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 Shiller PE Ratio compare to CRM and SHOP?
According to the Software industry distribution chart, Constellation Software ranks #866 out of 1019 companies for Shiller PE Ratio. This places Constellation Software in the lower half of its industry. The industry median Shiller PE Ratio is 27.55. Constellation Software's value of 88.78 is 222.3% above this benchmark. Historically, Constellation Software's own Shiller PE Ratio has ranged from 70.90 to 185.87 over the past decade. While the company's 10-year median is 116.67 vs. the industry median of 27.55, 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 Shiller PE Ratio for a Software company?
The median Shiller PE Ratio among Software companies is 27.55, based on 1,019 companies in the industry. Companies in the top quartile (top 25%) have a Shiller PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Shiller PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Constellation Software's current Shiller PE Ratio of 88.78 is 222.3% 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 Shiller PE Ratio mean?
A high Shiller PE Ratio can signal that a stock is expensive relative to its fundamentals. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Constellation Software and its competitors. For the Software industry, the median Shiller PE Ratio is 27.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Constellation Software's current Shiller PE Ratio is 88.78, which is 24% below median its own 10-year median of 116.67. 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$5,746.71, compared to a current price of C$3,023.96 — trading 47.4% below its estimated fair value. The current Shiller PE Ratio is 88.78, which is 24% below median its 10-year median of 116.67 and 222.3% above the Software industry median of 27.55. 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 Shiller PE Ratio calculated?
Shiller PE Ratio is calculated from a company's financial statements. For Constellation Software (TSX:CSU), the current Shiller PE Ratio is 88.78 as of Sep. 05, 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$3,023.96 is trading 47.4% below its estimated GF Value™ of C$5,746.71.
GuruFocus considers Constellation Software to be Significantly Undervalued.
Key valuation signals for TSX:CSU:
Shiller PE Ratio: 88.78 (24% below median its 10-year median of 116.67)
GF Value™: C$5,746.71 vs. price of C$3,023.96 (47.4% below fair value)
Industry Position: 222.3% above the Software median (#866 of 1019)
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.
86GF Score
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