As of April 4, 2026, Constellation Software Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.00, this represents a potential upside of 25.0%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -9.2% |
| Potential Upside (10-year) | 25.0% |
| Discount Rate (WACC) | 6.4% - 8.7% |
Revenue is projected to grow from $11623 million in 12-2025 to $29220 million by 12-2035, representing a compound annual growth rate of approximately 9.7%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2025 | 11623 | 15% |
| 12-2026 | 12220 | 5% |
| 12-2027 | 14333 | 17% |
| 12-2028 | 16812 | 17% |
| 12-2029 | 19317 | 15% |
| 12-2030 | 21689 | 12% |
| 12-2031 | 23010 | 6% |
| 12-2032 | 24850 | 8% |
| 12-2033 | 26503 | 7% |
| 12-2034 | 27828 | 5% |
| 12-2035 | 29220 | 5% |
Net profit margin is expected to improve from 5% in 12-2025 to 5% by 12-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2025 | 586 | 5% |
| 12-2026 | 623 | 5% |
| 12-2027 | 739 | 5% |
| 12-2028 | 876 | 5% |
| 12-2029 | 1016 | 5% |
| 12-2030 | 1151 | 5% |
| 12-2031 | 1223 | 5% |
| 12-2032 | 1323 | 5% |
| 12-2033 | 1413 | 5% |
| 12-2034 | 1486 | 5% |
| 12-2035 | 1563 | 5% |
with a 5-year average of $49 million. Projected CapEx is expected to maintain at approximately 1% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2026 | 58 |
| 12-2027 | 67 |
| 12-2028 | 78 |
| 12-2029 | 87 |
| 12-2030 | 99 |
| 12-2031 | 112 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 61 |
| Days Inventory | 118 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2026 | 1637 | 375 | 72 | 136 | 1054 |
| 2027 | 1931 | 445 | 84 | 335 | 1067 |
| 2028 | 2279 | 527 | 99 | 426 | 1227 |
| 2029 | 2632 | 612 | 113 | 434 | 1473 |
| 2030 | 2973 | 693 | 127 | 393 | 1759 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -9.2% |
| 10-Year DCF (Growth) | 0.00 | 25.0% |
| 5-Year DCF (EBITDA) | 1773.21 | +Inf% |
| 10-Year DCF (EBITDA) | 2254.74 | +Inf% |
Is Constellation Software Inc (CSU.TO) a buy or a sell? Constellation Software Inc is definitely a buy. Based on our DCF analysis, Constellation Software Inc (CSU.TO) appears to be overvalued with upside potential of 25.0%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $0.00.