What's priced into Constellation Software Inc.?
What do you have to believe to make money in Constellation Software Inc. at $3047? The stock trades at 49.3x trailing earnings and the Street expects about 26% growth a year. The question is where do we go from here?
Growth down the side, exit multiple across the top, your five-year annualized return in each cell.
5-year annualized return · growth vs exit multiple
| EPS growth ↓ · Exit multiple → | 24.7x −50% | 37.0x −25% | 49.3x today | 61.6x +25% | 92.9x 5y median |
|---|---|---|---|---|---|
| −13% (decline) | −24% | −18% | −13% | −9% | −1% |
| 0% (no growth) | −13% | −6% | +0% | +5% | +14% |
| 13% (half) | −1% | +7% | +13% | +18% | +29% |
| 26% (Street consensus) | +10% | +19% | +26% | +32% | +44% |
| 33% (beat) | +16% | +26% | +33% | +39% | +51% |
| 40% (big beat) | +22% | +32% | +40% | +46% | +59% |
“You are paying about C$3,035 a share for a serial acquirer that turns roughly one dollar in five of revenue into free cash and redeploys it at high teens returns on invested capital, so the whole bet is that Constellation's six operating groups can keep finding small vertical software businesses to buy at prices that still work.”
From our CSU.TO write-up.
Read the CSU.TO write-up →Method. Trailing diluted EPS of $61.79 (price $3047.11 ÷ 49.3x trailing P/E; data from Financial Modeling Prep, September 3, 2026). Exit multiples are anchored to the stock itself: 50% and 25% below today's multiple, today's, 25% above, and its own five-fiscal-year median of 92.9x. Growth rows are anchored to the Street’s forward consensus: a decline at half the center rate, zero, half, the center, 25% above, and 50% above. Cell shading scales with the return, green positive, red negative. Each cell: EPS compounds at the row's rate for five years, the stock is valued at the column's multiple in year five, and the result is the annualized return against today's price. Dividends and buybacks excluded. An illustrative surface, not a forecast and not a call.