ROP
Roper Technologies, Inc.
$326.94
Platform & Compounding FCF
80%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 28.0% below fair value
You pay
$326.94
Bear
$311.68
Fair
$454.16
Bull
$594.90
Bear
$311.68
-4.7%
6% stage 1 growth, 11% discount
Fair
$454.16
+38.9%
10% stage 1 growth, 11% discount
Bull
$594.90
+82.0%
13% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
16.8x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $457.64 from 23 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $454.16 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