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Roper Technologies (Roper Technologies) Intrinsic Value: Projected FCF

: $260.04 (As of Today)
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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-19), Roper Technologies's Intrinsic Value: Projected FCF is $260.04. The stock price of Roper Technologies is $527.27. Therefore, Roper Technologies's Price-to-Intrinsic-Value-Projected-FCF of today is 2.0.

The historical rank and industry rank for Roper Technologies's Intrinsic Value: Projected FCF or its related term are showing as below:

ROP' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.28   Med: 1.73   Max: 2.35
Current: 2.03

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Roper Technologies was 2.35. The lowest was 1.28. And the median was 1.73.

ROP's Price-to-Projected-FCF is ranked worse than
60.71% of 1265 companies
in the Software industry
Industry Median: 1.59 vs ROP: 2.03

Roper Technologies Intrinsic Value: Projected FCF Historical Data

The historical data trend for Roper Technologies's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Roper Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 201.23 193.76 208.90 238.72 260.04

Roper Technologies Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: Projected FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 238.72 243.12 244.37 252.43 260.04

Competitive Comparison

For the Software - Application subindustry, Roper Technologies's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Roper Technologies Price-to-Projected-FCF Distribution

For the Software industry and Technology sector, Roper Technologies's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Roper Technologies's Price-to-Projected-FCF falls into.



Roper Technologies Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Roper Technologies's Free Cash Flow(6 year avg) = $1,465.76.

Roper Technologies's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(9.5858149152102*1465.76+17444.8*0.8)/107.700
=260.04

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Roper Technologies  (NAS:ROP) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Roper Technologies's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=527.27/260.04033491289
=2.03

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Roper Technologies Intrinsic Value: Projected FCF Related Terms

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Roper Technologies (Roper Technologies) Business Description

Industry
Traded in Other Exchanges
Address
6901 Professional Parkway East, Suite 200, Sarasota, FL, USA, 34240
Roper is a diversified technology company that operates through three segments: application software; network software and systems; and technology enabled products. The firm's culture emphasizes acquiring asset-light, cash-generative businesses. Roper then reinvests this excess cash in businesses that yield incrementally higher rates of return. While the businesses are managed in a decentralized manner, Roper does not passively manage its portfolio. Instead, Roper manages its businesses through the Socratic method and empowers decision-makers through group executive coaching. Roper has now rotated a clear majority of its business from legacy industrial products into technology software in mature, niche markets with large quantities of deferred revenue.
Executives
Robert D Johnson director HONEYWELL, 1944 E SKY HARBOR CIRCLE, PHOENIX AZ 85034
Christopher Wright director C/O GENAISSANCE PHARMACEUTICALS INC, 5 SCIENCE PARK, NEW HAVEN CT 06511
Laurence Neil Hunn officer: Executive Vice President 100 NORTH POINT CENTER EAST, SUITE 200, ALPHARETTA GA 30022
Shellye L Archambeau director 1095 AVENUE OF THE AMERICAS, 8TH FLOOR, NEW YORK NY 10036
Jason Conley officer: Vice President and Controller C/O ROPER TECHNOLOGIES, INC., 6901 PROFESSIONAL PARKWAY, SARASOTA FL 34240
Richard F Wallman director HONEYWELL, 101 COLUMBIA ROAD, MORRISTOWN NJ 07962
Brandon L Cross officer: VP and Corporate Controller 6901 PROFESSIONAL PARKWAY, SUITE 200, SARASOTA FL 34240
Robert Crisci officer: Vice President and CFO C/O ROPER TECHNOLOGIES, INC., 6901 PROFESSIONAL PARKWAY, SARASOTA FL 34240
John K Stipancich officer: VP, GC & Secretary C/O ROPER TECHNOLOGIES, INC., 6901 PROFESSIONAL PARKWAY E, STE. 200, SARASOTA FL 34240
Joyce Thomas Patrick Jr director 2099 PENNSYLVANIA AVENUE, NW, 12TH FLOOR, WASHINGTON DC 22207
Irene M Esteves director C/O TIME WARNER CABLE INC., 60 COLUMBUS CIRCLE, 17TH FLOOR, NEW YORK NY 10023
Amy Woods Brinkley director BANK OF AMERICA CORP, 100 NORTH TRYON ST NC1-007-58-04, CHARLOTTE NC 28255
Fort John F Iii director C/O ROPER INDUSTRIES INC, 2160 SATELLITE BLVD, DULUTH GA 30097
Wilbur J Prezzano director 13515 BALLANTYNE CORPORATE PL, CHARLOTTE NC 28277
Knowling Robert E Jr director C/O HEWLETT-PACKARD CO, 3000 HANOVER STREET, PALO ALTO CA 94304