ROP
Roper Technologies, Inc.
$397.56
Platform & Compounding FCF
80%
Two-stage FCF DCF
Moderate
·
Conviction
Fair Value
Trading 19.2% below fair value
You pay
$397.56
Bear
$339.03
Fair
$491.79
Bull
$642.69
Bear
$339.03
-14.7%
6% stage 1 growth, 11% discount
Fair
$491.79
+23.7%
10% stage 1 growth, 11% discount
Bull
$642.69
+61.7%
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
18.4x
Market is pricing in (growth)
7.9%
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
15%
Summary
Using a two-stage FCF DCF with 10% growth decelerating over 15 years, discounted at 11%, the base-case intrinsic value is $491.79 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