ROP
Roper Technologies, Inc.
$407.28
Platform & Compounding FCF
80%
Two-stage FCF DCF
Moderate
·
Conviction
Fair Value
Trading 15.5% below fair value
You pay
$407.28
Bear
$332.26
Fair
$481.97
Bull
$629.85
Bear
$332.26
-18.4%
6% stage 1 growth, 11% discount
Fair
$481.97
+18.3%
10% stage 1 growth, 11% discount
Bull
$629.85
+54.6%
13% stage 1 growth, 11% discount
Adjust Assumptions
10.2%
11.0%
3.0%
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
19.1x
Market is pricing in (growth)
8.4%
vs 10.2% base
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (23 analysts)
$427.71
Divergence from AlphaVal
13%
Summary
Using a two-stage FCF DCF with 10% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $481.97 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions