ROP

Roper Technologies, Inc.Technology / Software - ApplicationINTACT

Roper Technologies, Inc. designs and develops vertical software and technology enabled products in the United States, Canada, Europe, Asia, and internationally. Its Application Software segment offers comprehensive management, diagnostic and laboratory information management, enterprise software and information solutions, K-12 school administration, transportation management, financial and compliance management, cloud-based and integrated payment processing, campus technology and payment, and cloud-based financial analytics, performance management software, and data solutions; cloud-based software for the property and casualty insurance industry; and foodservice technologies. The Network Software segment provides cloud-based data, collaboration, and estimating automation software; electronic marketplace; visual effects and 3D content software; cloud-based software and AI-enabled analytics solutions for the life insurance and financial services industries; supply chain software; health care services and software; data analytics and information; pharmacy software solutions; and AI-enabled SaaS providing digital engagement, as well as church management and integrated giving solutions for faith-based organizations. The Technology Enabled Products segment offers ultrasound procedures accessories; dispensers and metering pumps; wireless sensor network and solutions; automated surgical scrub and linen dispensing equipment; water meters; optical and electromagnetic precision measurement systems; RFID card and credential readers; and medical devices. It distributes and sells its products through direct sales offices, manufacturers' representatives, resellers, and distributors. The company was formerly known as Roper Industries, Inc. and changed its name to Roper Technologies, Inc. in April 2015. Roper Technologies, Inc. was incorporated in 1981 and is based in Sarasota, Florida.

Share Price
$387.19
52W: $305.96 - $521.28
DCF Fair Value
$509.95
+24.1% MoS
P/E (TTM)
16.1x
ROIC
20.8%
Operating Margin
27.7%
FCF Yield
5.9%
Debt / Equity
0.61x
Piotroski Score
6/9
Altman Z-Score
3.2
Market Cap
$38.3B

Price vs. Intrinsic Value Corridor

Modest Value ($387.19 vs $509.95 DCF)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$509.95
MOS Buy Target (-25%)
$382.46
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$387.19
DCF Fair Value
$510.83
+24.2% MoS
$2,266M
$100M$2,266M (Reported)$50,000M
13.9%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$10,900M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$25.4B
PV of Terminal Value
$36.1B
Implied Enterprise Value
$61.5B
Implied Equity Value
$50.6B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$2,581$2,940$3,348$3,814$4,344$4,539$4,744$4,957$5,180$5,413
Present Value (PV)$2,368$2,474$2,586$2,702$2,823$2,707$2,595$2,488$2,385$2,287

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-21.1% Premium
$319.60

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $24.01BVPS: $189.08
Revised Graham Formula+40% MoS
$644.87

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings5.6% Yield
$21.74 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $2.2BYield: 5.6%

Reverse DCF: Market Growth Expectation

MODEST BARRIER
3.4% CAGR (Next 10 Yrs)

At the current price of $387.19, the market is assuming the business will compound Free Cash Flow at 3.4% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
✓ Low market hurdle: Easy for a wide-moat compounder to beat.
Autonomous Thesis Underwriting

Surveil ROP with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Roper Technologies, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 27.7% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: Roper Technologies, Inc. (ROP) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Roper Technologies, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Roper Technologies, Inc. has an estimated DCF intrinsic fair value of $509.95 per share compared to its current market price of $387.19. This represents an estimated 24.1% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $319.61.

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