Roper Technologies designs and develops software (both software-as-a-service and licensed), and engineered products and solutions for healthcare, transportation, food, energy, water, education and academic research markets worldwide. The company was founded in 1981 and is based in Sarasota, Florida.
ROP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Roper Technologies Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Roper Technologies Inc ranked in the 32th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Roper Technologies Inc, consider:
As a business, ROP is generating more cash flow than 89.72% of positive cash flow stocks in the Industrials.
The business' balance sheet reveals debt to be 10% of the company's capital (with equity being the remaining amount). Approximately just 22.68% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
ROP's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 37.29% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BBSI, IEX, ROK, BDC, and DCI can be thought of as valuation peers to ROP, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Roper Technologies, Inc. (ROP) Q2 2020 Earnings Conference Call July 28, 2020 8:00 AM ET Company Participants Zack Moxcey - Vice President, Investor Relations Neil Hunn - President and Chief Executive Officer Rob Crisci - Executive Vice President and Chief Financial Officer Conference Call Participants Deane Dray - RBC Capital...