Is Roper Technologies, Inc. (ROP) overvalued or undervalued?
Updated Nov 10, 2026 · hand-researched model · educational, not advice
At a recent price of $471.64, Roper Technologies, Inc. (ROP) trades 10% above TickerWorth's blended fair value of $430.66 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices ROP overvalued vs our estimate of what the business is intrinsically worth. Our fair value sits below the market, an implied -8.7% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values ROP at about $383.13 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Roper Technologies, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 8.4%, with a long-run terminal growth rate of 2.5%. About 76% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 4.4% annual revenue growth for ROP. Our base case instead compounds to about 5.4% a year over the same forecast, so the market's implied growth is broadly in line with our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, ROP's modeled DCF value ranges from about $250.45 to $710.11 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Roper Technologies, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of ROP's intrinsic value. Figures update as new filings and prices come in.
The assumptions behind ROP's DCF
| Input | Value | Source |
|---|---|---|
| Base-year revenue | $7,902,500,000 | Roper Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0000882835-26-000003, filed 2026-01-27); Roper FY2025 10-K (accession 0000882835-26-000009, filed 2026-02-24): Net revenues FY2025 $7,902.5M, +12% on FY2024 $7,039.2M — but only +5% ORGANIC; +7 points came from acquisitions (CentralReach, Subsplash, Orchard, Outgo and bolt-ons; $3,290M of acquisition cash in FY2025). Segments: Application Software $4,483.0M, Network Software $1,600.8M, Technology Enabled Products $1,818.7M. Calendar fiscal year. UNCHANGED as the base — the new quarters belong in the forecast. CROSS-CHECK: H1 2026 revenue $4,204.2M vs $3,826.4M = +9.9% (organic +5.3%, acquisitions +4.1%); Q2 alone $2,108.9M, +8.5% (organic +4.9%). |
| Base EBIT margin | 38.6% | Roper Q4/FY2025 earnings release, 8-K Ex-99.1 (accession 0000882835-26-000003, filed 2026-01-27) (Table 1, footnote B) + income statement: DERIVED — and the definition is the single biggest choice in this file: operating income BEFORE amortization of ACQUIRED intangibles (EBITA), after everything else. GAAP income from operations $2,235.4M (28.3%) + acquisition-related intangible amortization $815M (Roper's own figure, release footnote B) = $3,050.4M = 38.60% of $7,902.5M. Capitalized-software amortization (~$43M: $858.4M total intangible amortization less the $815M acquired piece) and PP&E depreciation ($39.8M) STAY INSIDE this margin as real recurring costs. SBC ($166.3M) stays in (Roper does not adjust it out). TIES TO ROPER'S OWN NUMBERS: adjusted EBITDA $3,143M - depreciation $40M - software amortization $43M - $9M transaction costs Roper adds back = $3,051M. WHY AMORTIZATION IS EXCLUDED: see da_pct_revenue and special_cases — it pushes the value UP by ~$100/share versus the IBM treatment, and it is only coherent because years 2-5 are ORGANIC growth with no acquisition spending modelled. CROSS-CHECK H1 2026: operating income $1,154.3M + acquired amortization $415.8M (10-Q Note 8) = $1,570.1M / $4,204.2M = 37.35%, DOWN ~110bp on H1 2025's 38.46% ($1,074.1M + $397.5M on $3,826.4M) — Network Software margin fell from 44.1% to 40.8% (Subsplash payments mix, Convoy freight platform) and SBC rose 31%. |
| Forecast revenue growth | 8% → 6% → 5% → 4% → 4% | Assumption — TickerWorth's 5-year explicit forecast |
| Risk-free rate | 5.2% | US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation; program-wide input shared by every researched model in this run. |
| Beta | 0.85 | Assumption — normalized estimate (published Yahoo/yfinance 5Y-monthly beta 0.751): NORMALIZED UP from the published 0.751 — CONSERVATIVE (raises WACC, lowers value). Reasons: (1) leverage has risen sharply — net debt to total net capital 36.9% at 2026-06-30 vs 31.2% at year-end, after $2.0B of revolver borrowing funded $2.7B of buybacks — and a 5-year regression mostly describes the less-levered company; (2) the 2026 de-rating of vertical software on AI-disruption fears (the shares fell from a 52-week high of $521 to a low of $306) is a sector-wide factor that a monthly regression with ~60 points barely registers. 0.85 matches the normalization used for IBM and SOLV in this tracker. At the published 0.751 the slice is about $416; each 0.1 of beta is worth ~$33/share; the market price implies ~0.92. |
| Terminal growth | 2.5% | Assumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. For Roper it is an ORGANIC perpetuity: the model assumes no acquisitions, so 2.5% is the rate the existing portfolio grows forever. Must stay below WACC (8.38%). At 2.0% the value falls ~$30/share — terminal value is ~76% of EV, so this matters. |
| Diluted shares | 101M | Roper Q2 2026 10-Q (accession 0000882835-26-000036, filed 2026-07-31): Q2 2026 weighted-average diluted shares 100.6M (H1 102.6M; FY2025 108.2M). CONSERVATIVE: the weighted average lags a very fast buyback — 7.865M shares repurchased for $2,724M in H1 2026 (avg $346.34) and 9.0M for $3.2B program-to-date, leaving 98.9M outstanding at 2026-06-30. On ~99.5M (outstanding plus dilutive awards) the slice would be ~$4 higher. Q3 repurchases, if any, are not yet reported; $2,776M of authorization remained at June 30. |
| Market price | $471.64 | Delayed quote · as of 2026-11-10 05:03 UTC |
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