Constellation Software Inc
TSX:CSU
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (46.1), the stock would be worth CA$5 509.78 (121% upside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 20.9 | CA$2 495.97 |
0%
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| 3-Year Average | 46.1 | CA$5 509.78 |
+121%
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| 5-Year Average | 42.5 | CA$5 071.79 |
+103%
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| Industry Average | 21 | CA$2 511.29 |
+1%
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| Country Average | 14.5 | CA$1 727.92 |
-31%
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Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
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CA$58.1B
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Jan 2026
$1.9B
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= |
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CA$58.1B
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/ |
Dec 2026
$2.3B
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= |
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CA$58.1B
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/ |
Dec 2027
$2.7B
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= |
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CA$58.1B
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/ |
Dec 2028
$2.6B
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= |
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Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| CA |
|
Constellation Software Inc
TSX:CSU
|
51.7B CAD | 20.9 | 76 | |
| US |
|
Ezenia! Inc
OTC:EZEN
|
567B USD | -177 298 | -180 630.8 | |
| US |
|
Palantir Technologies Inc
NASDAQ:PLTR
|
315.5B USD | 224.6 | 199.7 | |
| DE |
|
SAP SE
XETRA:SAP
|
166.2B EUR | 15.8 | 22.8 | |
| US |
|
Salesforce Inc
NYSE:CRM
|
161.9B USD | 18.3 | 21.8 | |
| US |
|
Applovin Corp
NASDAQ:APP
|
141.2B USD | 35.4 | 43.8 | |
| US |
|
Intuit Inc
NASDAQ:INTU
|
102.5B USD | 19.1 | 23.6 | |
| US |
|
Adobe Inc
NASDAQ:ADBE
|
97.5B USD | 10.7 | 13.5 | |
| US |
N
|
NCR Corp
LSE:0K45
|
88.5B USD | 616.6 | 2 107.9 | |
| US |
|
Synopsys Inc
NASDAQ:SNPS
|
80B USD | 89.7 | 73 | |
| US |
|
Cadence Design Systems Inc
NASDAQ:CDNS
|
78.3B USD | 46.9 | 71.7 |
Market Distribution
| Min | 0 |
| 30th Percentile | 10.6 |
| Median | 14.5 |
| 70th Percentile | 20.6 |
| Max | 3 794.4 |
Other Multiples
Constellation Software Inc
Glance View
In 1995, Constellation Software Inc. embarked on a journey that would redefine how niche software companies operate and grow in the technology landscape. Founded by Mark Leonard, a former venture capitalist with a visionary knack for identifying untapped potential, Constellation started acquiring small software firms that catered to specific vertical markets. These were companies with specialized software solutions tailored to unique industry needs, from healthcare to public transit, where the competitive landscape was less crowded. By focusing on these vertical markets, Constellation enabled its subsidiaries to flourish in their niche domains by providing them with the necessary financial backing, strategic direction, and operational expertise. Unlike traditional software behemoths that invest heavily in research and development to drive organic growth, Constellation's strength lies in its decentralized approach that empowers acquired companies to maintain their entrepreneurial spirit. By allowing these businesses to operate independently, Constellation fosters an environment where innovation and customer focus thrive. Their revenue model primarily revolves around the acquisition of firms with high retention rates and sustainable recurring revenues. This focus on recurrent revenue streams, such as licensing and maintenance agreements, ensures a steady cash flow that can be reinvested into further acquisitions. Through this disciplined acquisition strategy and a long-term investment horizon, Constellation has created a robust portfolio of diverse yet synergistic companies, driving lasting value creation and consistent financial performance.
