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Highlights
Target price: $700 CAD in 2017
(27% IRR)
Capitalization
$469.68
CAD to USD FX
0.78
$366.35
Diluted S/O
21.2
Equity Value
$7,764
(+) Debt
276.0
(-) Cash
131.8
EV (USD)
$7,908
Key Metrics
Net Debt / EBITDA
0.4x
$38
Dividend Yield
1.1%
52wk Range
Valuation
230.08 503.43
2015E
2016E
2017E
EV / EBITDA
Street
16.8x
18.3x
12.7x
15.4x
9.6x
14.1x
P / Adj. E
Street
21.4x
29.2x
16.3x
24.5x
12.3x
22.6x
PEG
0.7
10%
12%
9%
7%
5%
8%
7%
7%
4%
0%
2006
2008
2010
2012
2014
8%
8%
6%
4%
9%
6%
5%
6%
5%
5%
2%
5%
3%
0%
2006
2008
2010
2012
2014
40%
20%
0%
CSU ROIC
3.0x
2.5x
2.0x
Median EV/
Rev (Software
M&A deals:
$10-20mm)
1.5x
1.0x
0.5x
0.0x
2010
Excl. TSS
acquisition
2011
2012
2013
CSU Revenue
Multiple Paid
Financial
tracking
Small teams
Benefits for
targets
Scale-up
acquisitions
Scalable
organization
Leverage
Disciplined
buying
Software companies in
US, Canada, Europe
Rev. (mm) # Companies
<$300
17,399
<$200
17,144
<$100
16,536
<$50
15,507
<$25
13,410
<$10
7,986
Total CSU
Acquisitions
from
2010-2014
(5yr)
131
Empire building
FX
Competition
from SaaS
2015E
16.8x
21.4x
4.9%
0.7
$31.43
6.0%
$524
$672
43.0%
23.8%
$546
$700
49.0%
26.9%
2016E
12.7x
16.3x
6.5%
EV / EBITDA
FY 2017 EBITDA
EV / EBITDA Mult.
Enterprise Value
(-) FY 2016 Debt
(+) FY 2016 Cash
Equity Value
Price Target (USD)
Price Target (CAD)
Total Upside
IRR
2017E
9.6x
12.3x
8.6%
825.7
15.0x
$12,385.1
294.6
132.5
$12,222.9
$577
$739
57.4%
31.1%
P/E
FY 2017 Adj. EPS
P/E
Price Target (USD)
Price Target (CAD)
Total Upside
IRR
$29.82
18.0x
$537
$688
46.5%
25.6%