Constellation Software (CSU) continued its slide - falling 3% Friday, 14% YTD, and 35% over the past year. That trajectory is shared by most Canadian software names excluding Shopify, Open Text, and Coveo…

… who’ve seen modest multiple expansion over the past year, while peer multiples have nearly been cut in half. While “AI risk” is the easy answer, this diverging performance tells you how the market actually perceives it…

The risk isn’t AI by itself, but that strong technical teams will out-compete legacy players - impairing terminal value. With the average company in this analysis started in 1997, that concern might be valid.