Buying Opportunity in Constellation Software at a Lower Multiple

4 days ago

Daniel Pronk

"Constellation Software is in a very large correction right now. It s actually the largest correction the stock has ever been in and down roughly 30% from its all-time highs. I was waiting for a better opportunity. And I believe that a 22 multiple for a business that has such a great track record of growing 20% plus is very fair. I am happy to be a buyer of Constellation Software. Once again, that's my first time in 3 years buying this stock."

The speaker explains that Constellation Software, currently in its largest correction and trading at a 22x free cash flow multiple, now offers an attractive entry point. He highlights its consistent revenue and cash flow growth, alongside strong capital allocation and management incentives.