ROP
Roper Technologies, Inc.
$363.14
Platform & Compounding FCF
80%
Two-stage FCF DCF
Moderate
·
Conviction
Fair Value
Trading 16.0% below fair value
You pay
$363.14
Bear
$295.37
Fair
$432.47
Bull
$567.89
Bear
$295.37
-18.7%
6% stage 1 growth, 11% discount
Fair
$432.47
+19.1%
10% stage 1 growth, 11% discount
Bull
$567.89
+56.4%
13% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (10% base case)
Terminal Value % of EV
39%
Implied Market Multiple
19.3x
Market is pricing in (growth)
8.5%
vs 10.2% base
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 $452.25 from 23 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $432.47 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