Constellation Software (CSU.TO) analysis

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Health is the debt of the purchases, not a factory's debt. Quality is the margin on maintenance and on the subscription of software already installed. Growth follows the purchases, not the organic growth of a single brand. P/E is read against a year of many acquisitions, not against the earnings of one of them. Shareholder return is mostly reinvestment. Do not turn it into a 25% return.

The P/E of a year of many purchases is not organic earnings. EV/EBITDA is read with the debt of those purchases inside. Do not use Topicus's multiple as if it were the same portfolio, or a consumer-software multiple. A dash if the CSU.TO cache is cold.

Limits of this report

Not advice on Constellation. Vaultflake does not treat the customer as captive or the purchase as a high return. This is not reinvesting 100% of the cash. Read the filings. A past dividend is not a right. The table is a snapshot, not a target price.

Questions from this report