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Constellation Software (TSX:CSU) is one of the priciest stocks trading on the TSX. The tech stock has surged 15% year to date and is hovering above $3,700 a share. That’s more than half of your 2024 Tax-Free Savings Account (TFSA) contribution room. You can’t buy two CSU shares in your TFSA in 2024. Looking at the $3,700 price, you might wonder what made this stock so pricey. Doesn’t this price hamper its trading volume? Could the stock reach $4,000?
What makes Constellation Software stock so pricey?
Note that I used the term pricey and not expensive. Whether a stock is expensive depends on its value, measured using a company’s fundamentals like earnings per share (EPS) or sales per share. The more shares, the smaller the share in the company’s earnings and sales. It is like a pizza. The more the number of people, the smaller the slice each person gets.
Constellation…
