Hey Mihir,

I follow the fundamentals of Constellation very closely, but not so much on the price. I can see now that Constellation is trading around 27x free cash flow TTM. Topicus is at 31x FCF TTM. I think the main reason for the premium is the share issuance. It’s deflating cash flow per share even though FCF is going up steadily. I assume it will come in line with a constellation over time. How long? No idea.

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Jul 25, 2022Liked by The Thinking Investor

Hi - enjoyed the write up! Wanted to see if you have any thoughts on the valuation discrepancy between TOI and CSU? I'm trying to better understand if the TOI premium is maybe due to technical reasons like the spin or complexity in the structure or anything else even? Or whether it's down to the runway / size constraint being much more favourable for them? Would be great to get your thoughts on this, thanks

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May 28, 2022Liked by The Thinking Investor

Thanks for the write up! Love this company. Regards from Spain!

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