The visitor's backline includes French fly-half Romain Ntamack, Italy international winger Ange Capuozzo, full-back Thomas Ramos and Scotland's Blair Kinghorn.
Smith is relishing the opportunity for his side to test itself against the one of the world's top teams.
"This is the type of rugby we want to play, measured against the best," he told BBC Scotland.
"They have won this competition six times, they are competing at the top end of this competition and the top end of the Top 14 every year.
"They are a class outfit, they've got a very good squad, they obviously invest heavily and Toulouse is a well-known rugby city.
"The support base and the way they go about living rugby there is huge, so for us to get that opportunity, to measure ourselves against them, that is fantastic."