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Constellation Software Inc. (CSU $2,444.57)
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Topicus.com Inc. (TOI $94.49)
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Lumine Group Inc. (LMN $22.37)
Q: Hi Team, I've always found it hard to get accurate valuations on the CSU family. Can you provide, to the best of your capability, the current valuation of each for current fiscal and one year out? Also, where in your crystal 🔮 do see capitulation possibly occurring. Thanks for all you work!
5i Research Answer:
Forward P/Es and EV/EBITDA follow, respectively:
CSU = 14.4X, 9.9X
TOI = 21.7X, 8.7X
LMN = 19.2X, 10.8X
On capitulation, in fairness we probably thought we had hit it already a few weeks back but it does seem shares might be finding a bit of support at this stage, compared to what were fairly consistent sequential down days over the last month. The intensity of the selling seems to be settling doen a bit as well so we do think shares are starting to emerge out the other side of this but markets still might need to see earnings before they can get overly comfortable/confident again.