Intrinsic value of Roper Technologies - ROP

Previous Close

$255.42

  Intrinsic Value

$284.42

stock screener

  Rating & Target

hold

+11%

Previous close

$255.42

 
Intrinsic value

$284.42

 
Up/down potential

+11%

 
Rating

hold

We calculate the intrinsic value of ROP stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 26.1

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  5.81
  21.80
  20.12
  18.61
  17.25
  16.02
  14.92
  13.93
  13.04
  12.23
  11.51
  10.86
  10.27
  9.74
  9.27
  8.84
  8.46
  8.11
  7.80
  7.52
  7.27
  7.04
  6.84
  6.65
  6.49
  6.34
  6.21
  6.09
  5.98
  5.88
  5.79
Revenue, $m
  3,790
  4,616
  5,545
  6,577
  7,711
  8,947
  10,282
  11,714
  13,240
  14,860
  16,570
  18,369
  20,256
  22,230
  24,291
  26,439
  28,676
  31,002
  33,421
  35,935
  38,547
  41,261
  44,083
  47,016
  50,067
  53,242
  56,546
  59,987
  63,572
  67,310
  71,208
Variable operating expenses, $m
 
  3,103
  3,553
  4,053
  4,603
  5,202
  5,850
  6,544
  7,284
  8,070
  8,899
  8,906
  9,821
  10,778
  11,777
  12,819
  13,903
  15,031
  16,204
  17,423
  18,689
  20,005
  21,374
  22,796
  24,275
  25,814
  27,416
  29,084
  30,823
  32,635
  34,525
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  2,736
  3,103
  3,553
  4,053
  4,603
  5,202
  5,850
  6,544
  7,284
  8,070
  8,899
  8,906
  9,821
  10,778
  11,777
  12,819
  13,903
  15,031
  16,204
  17,423
  18,689
  20,005
  21,374
  22,796
  24,275
  25,814
  27,416
  29,084
  30,823
  32,635
  34,525
Operating income, $m
  1,054
  1,513
  1,992
  2,523
  3,108
  3,744
  4,432
  5,170
  5,956
  6,790
  7,671
  9,463
  10,435
  11,452
  12,514
  13,620
  14,772
  15,971
  17,217
  18,512
  19,857
  21,256
  22,709
  24,221
  25,792
  27,428
  29,130
  30,902
  32,749
  34,675
  36,683
EBITDA, $m
  1,294
  2,509
  3,013
  3,574
  4,190
  4,862
  5,587
  6,365
  7,195
  8,075
  9,005
  9,982
  11,008
  12,080
  13,200
  14,368
  15,583
  16,847
  18,162
  19,528
  20,947
  22,422
  23,956
  25,550
  27,208
  28,933
  30,728
  32,598
  34,546
  36,578
  38,696
Interest expense (income), $m
  105
  203
  266
  336
  414
  499
  592
  692
  800
  915
  1,037
  1,166
  1,301
  1,443
  1,592
  1,747
  1,909
  2,077
  2,252
  2,434
  2,623
  2,820
  3,024
  3,237
  3,457
  3,687
  3,926
  4,175
  4,434
  4,704
  4,985
Earnings before tax, $m
  941
  1,310
  1,726
  2,187
  2,694
  3,245
  3,840
  4,477
  5,156
  5,875
  6,634
  8,297
  9,134
  10,009
  10,922
  11,873
  12,864
  13,894
  14,965
  16,078
  17,234
  18,436
  19,685
  20,984
  22,335
  23,740
  25,204
  26,728
  28,316
  29,971
  31,698
Tax expense, $m
  282
  354
  466
  591
  727
  876
  1,037
  1,209
  1,392
  1,586
  1,791
  2,240
  2,466
  2,702
  2,949
  3,206
  3,473
  3,751
  4,040
  4,341
  4,653
  4,978
  5,315
  5,666
  6,030
  6,410
  6,805
  7,216
  7,645
  8,092
  8,558
Net income, $m
  659
  956
  1,260
  1,597
  1,967
  2,369
  2,803
  3,268
  3,764
  4,289
  4,843
  6,057
  6,668
  7,306
  7,973
  8,667
  9,390
  10,143
  10,924
  11,737
  12,581
  13,458
  14,370
  15,318
  16,304
  17,331
  18,399
  19,511
  20,670
  21,879
  23,140

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  757
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  14,325
  16,546
  19,875
  23,573
  27,638
  32,067
  36,851
  41,984
  47,457
  53,262
  59,391
  65,840
  72,603
  79,678
  87,064
  94,764
  102,780
  111,119
  119,788
  128,798
  138,161
  147,890
  158,004
  168,518
  179,453
  190,830
  202,673
  215,007
  227,858
  241,254
  255,226
Adjusted assets (=assets-cash), $m
  13,568
  16,546
  19,875
  23,573
  27,638
  32,067
  36,851
  41,984
  47,457
  53,262
  59,391
  65,840
  72,603
  79,678
  87,064
  94,764
  102,780
  111,119
  119,788
  128,798
  138,161
  147,890
  158,004
  168,518
  179,453
  190,830
  202,673
  215,007
  227,858
  241,254
  255,226
Revenue / Adjusted assets
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
  0.279
Average production assets, $m
  3,216
  3,915
  4,702
  5,577
  6,539
  7,587
  8,719
  9,933
  11,228
  12,601
  14,052
  15,577
  17,177
  18,851
  20,599
  22,420
  24,317
  26,290
  28,341
  30,472
  32,688
  34,990
  37,382
  39,870
  42,457
  45,149
  47,951
  50,869
  53,909
  57,079
  60,384
Working capital, $m
  332
  -28
  -33
  -39
  -46
  -54
  -62
  -70
  -79
  -89
  -99
  -110
  -122
  -133
  -146
  -159
  -172
  -186
  -201
  -216
  -231
  -248
  -264
  -282
  -300
  -319
  -339
  -360
  -381
  -404
  -427
Total debt, $m
  6,210
  7,601
  9,599
  11,818
  14,257
  16,914
  19,785
  22,864
  26,148
  29,631
  33,309
  37,178
  41,236
  45,481
  49,913
  54,532
  59,342
  64,345
  69,547
  74,953
  80,570
  86,408
  92,476
  98,785
  105,346
  112,172
  119,278
  126,678
  134,389
  142,426
  150,809
Total liabilities, $m
  8,536
  9,927
  11,925
  14,144
  16,583
  19,240
  22,111
  25,190
  28,474
  31,957
  35,635
  39,504
  43,562
  47,807
  52,239
  56,858
  61,668
  66,671
  71,873
  77,279
  82,896
  88,734
  94,802
  101,111
  107,672
  114,498
  121,604
  129,004
  136,715
  144,752
  153,135
Total equity, $m
  5,789
  6,618
  7,950
  9,429
  11,055
  12,827
  14,741
  16,794
  18,983
  21,305
  23,757
  26,336
  29,041
  31,871
  34,826
  37,906
  41,112
  44,447
  47,915
  51,519
  55,264
  59,156
  63,201
  67,407
  71,781
  76,332
  81,069
  86,003
  91,143
  96,502
  102,090
Total liabilities and equity, $m
  14,325
  16,545
  19,875
  23,573
  27,638
  32,067
  36,852
  41,984
  47,457
  53,262
  59,392
  65,840
  72,603
  79,678
  87,065
  94,764
  102,780
  111,118
  119,788
  128,798
  138,160
  147,890
  158,003
  168,518
  179,453
  190,830
  202,673
  215,007
  227,858
  241,254
  255,225
Debt-to-equity ratio
  1.073
  1.150
  1.210
  1.250
  1.290
  1.320
  1.340
  1.360
  1.380
  1.390
  1.400
  1.410
  1.420
  1.430
  1.430
  1.440
  1.440
  1.450
  1.450
  1.450
  1.460
  1.460
  1.460
  1.470
  1.470
  1.470
  1.470
  1.470
  1.470
  1.480
  1.480
Adjusted equity ratio
  0.371
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  659
  956
  1,260
  1,597
  1,967
  2,369
  2,803
  3,268
  3,764
  4,289
  4,843
  6,057
  6,668
  7,306
  7,973
  8,667
  9,390
  10,143
  10,924
  11,737
  12,581
  13,458
  14,370
  15,318
  16,304
  17,331
  18,399
  19,511
  20,670
  21,879
  23,140
Depreciation, amort., depletion, $m
  240
  995
  1,021
  1,051
  1,083
  1,118
  1,155
  1,196
  1,239
  1,285
  1,333
  519
  573
  628
  687
  747
  811
  876
  945
  1,016
  1,090
  1,166
  1,246
  1,329
  1,415
  1,505
  1,598
  1,696
  1,797
  1,903
  2,013
Funds from operations, $m
  944
  1,952
  2,281
  2,647
  3,049
  3,487
  3,958
  4,464
  5,003
  5,574
  6,176
  6,576
  7,240
  7,935
  8,660
  9,415
  10,201
  11,019
  11,869
  12,752
  13,671
  14,625
  15,616
  16,647
  17,720
  18,836
  19,997
  21,207
  22,467
  23,782
  25,152
Change in working capital, $m
  -20
  -5
  -6
  -6
  -7
  -7
  -8
  -9
  -9
  -10
  -10
  -11
  -11
  -12
  -12
  -13
  -13
  -14
  -15
  -15
  -16
  -16
  -17
  -18
  -18
  -19
  -20
  -21
  -22
  -22
  -23
Cash from operations, $m
  964
  1,956
  2,287
  2,654
  3,056
  3,494
  3,966
  4,473
  5,012
  5,583
  6,186
  6,587
  7,252
  7,947
  8,672
  9,428
  10,214
  11,033
  11,883
  12,768
  13,686
  14,641
  15,633
  16,665
  17,738
  18,855
  20,017
  21,228
  22,489
  23,804
  25,176
Maintenance CAPEX, $m
  0
  -107
  -130
  -157
  -186
  -218
  -253
  -291
  -331
  -374
  -420
  -468
  -519
  -573
  -628
  -687
  -747
  -811
  -876
  -945
  -1,016
  -1,090
  -1,166
  -1,246
  -1,329
  -1,415
  -1,505
  -1,598
  -1,696
  -1,797
  -1,903
New CAPEX, $m
  -40
  -699
  -788
  -875
  -962
  -1,048
  -1,132
  -1,214
  -1,295
  -1,373
  -1,450
  -1,526
  -1,600
  -1,674
  -1,748
  -1,822
  -1,897
  -1,973
  -2,051
  -2,132
  -2,215
  -2,302
  -2,393
  -2,488
  -2,587
  -2,692
  -2,802
  -2,918
  -3,040
  -3,169
  -3,306
Cash from investing activities, $m
  -3,753
  -806
  -918
  -1,032
  -1,148
  -1,266
  -1,385
  -1,505
  -1,626
  -1,747
  -1,870
  -1,994
  -2,119
  -2,247
  -2,376
  -2,509
  -2,644
  -2,784
  -2,927
  -3,077
  -3,231
  -3,392
  -3,559
  -3,734
  -3,916
  -4,107
  -4,307
  -4,516
  -4,736
  -4,966
  -5,209
Free cash flow, $m
  -2,789
  1,150
  1,369
  1,622
  1,908
  2,228
  2,582
  2,968
  3,386
  3,836
  4,316
  4,593
  5,132
  5,700
  6,296
  6,919
  7,571
  8,249
  8,956
  9,691
  10,455
  11,249
  12,074
  12,931
  13,822
  14,748
  15,710
  16,711
  17,753
  18,838
  19,968
Issuance/(repayment) of debt, $m
  2,932
  1,792
  1,997
  2,219
  2,439
  2,657
  2,871
  3,080
  3,284
  3,483
  3,678
  3,869
  4,058
  4,245
  4,432
  4,620
  4,810
  5,003
  5,202
  5,406
  5,618
  5,838
  6,068
  6,309
  6,561
  6,826
  7,106
  7,400
  7,710
  8,038
  8,383
Issuance/(repurchase) of shares, $m
  3
  229
  72
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  2,926
  2,021
  2,069
  2,219
  2,439
  2,657
  2,871
  3,080
  3,284
  3,483
  3,678
  3,869
  4,058
  4,245
  4,432
  4,620
  4,810
  5,003
  5,202
  5,406
  5,618
  5,838
  6,068
  6,309
  6,561
  6,826
  7,106
  7,400
  7,710
  8,038
  8,383
Total cash flow (excl. dividends), $m
  100
  3,171
  3,438
  3,841
  4,348
  4,885
  5,452
  6,047
  6,670
  7,319
  7,994
  8,462
  9,190
  9,945
  10,728
  11,539
  12,380
  13,253
  14,158
  15,097
  16,073
  17,087
  18,142
  19,240
  20,383
  21,574
  22,816
  24,111
  25,463
  26,875
  28,351
Retained Cash Flow (-), $m
  -490
  -1,185
  -1,332
  -1,479
  -1,626
  -1,771
  -1,914
  -2,053
  -2,189
  -2,322
  -2,452
  -2,579
  -2,705
  -2,830
  -2,955
  -3,080
  -3,206
  -3,335
  -3,468
  -3,604
  -3,745
  -3,892
  -4,045
  -4,206
  -4,374
  -4,551
  -4,737
  -4,933
  -5,140
  -5,359
  -5,589
Prev. year cash balance distribution, $m
 
  356
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  2,342
  2,106
  2,362
  2,721
  3,114
  3,538
  3,994
  4,481
  4,997
  5,542
  5,883
  6,485
  7,115
  7,773
  8,459
  9,174
  9,917
  10,690
  11,493
  12,328
  13,195
  14,097
  15,034
  16,009
  17,023
  18,079
  19,178
  20,323
  21,517
  22,762
Discount rate, %
 
  7.80
  8.19
  8.60
  9.03
  9.48
  9.95
  10.45
  10.98
  11.52
  12.10
  12.71
  13.34
  14.01
  14.71
  15.44
  16.22
  17.03
  17.88
  18.77
  19.71
  20.70
  21.73
  22.82
  23.96
  25.16
  26.41
  27.73
  29.12
  30.58
  32.11
PV of cash for distribution, $m
 
  2,173
  1,799
  1,844
  1,926
  1,980
  2,002
  1,992
  1,948
  1,872
  1,769
  1,578
  1,443
  1,294
  1,138
  981
  829
  685
  554
  437
  337
  254
  186
  133
  92
  62
  41
  26
  16
  9
  5
Current shareholders' claim on cash, %
  100
  99.1
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8
  98.8

Roper Technologies, Inc. is a technology company. The Company operates businesses that design and develop software and engineered products and solutions for various end markets, including healthcare, transportation, commercial construction, food, energy, water, education and academic research. The Company operates in four segments: Medical & Scientific Imaging, which offers products and software in medical applications, and digital imaging products; RF Technology, which provides radio frequency identification (RFID) communication technology and software solutions; Industrial Technology, which produces fluid handling pumps, materials analysis equipment and consumables, leak testing equipment, flow measurement and metering equipment, and Energy Systems & Controls, which produces control systems, fluid properties testing equipment, industrial valves and controls, vibration sensors and controls, and non-destructive inspection and measurement products and solutions.

FINANCIAL RATIOS  of  Roper Technologies (ROP)

Valuation Ratios
P/E Ratio 39.4
Price to Sales 6.9
Price to Book 4.5
Price to Tangible Book
Price to Cash Flow 26.9
Price to Free Cash Flow 28.1
Growth Rates
Sales Growth Rate 5.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 11.1%
Cap. Spend. - 3 Yr. Gr. Rate -1.4%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 100.3%
Total Debt to Equity 107.3%
Interest Coverage 10
Management Effectiveness
Return On Assets 6%
Ret/ On Assets - 3 Yr. Avg. 7.5%
Return On Total Capital 6.4%
Ret/ On T. Cap. - 3 Yr. Avg. 8.3%
Return On Equity 11.9%
Return On Equity - 3 Yr. Avg. 13.4%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 61.5%
Gross Margin - 3 Yr. Avg. 60.4%
EBITDA Margin 33.9%
EBITDA Margin - 3 Yr. Avg. 34.5%
Operating Margin 27.8%
Oper. Margin - 3 Yr. Avg. 28.2%
Pre-Tax Margin 24.8%
Pre-Tax Margin - 3 Yr. Avg. 26.3%
Net Profit Margin 17.4%
Net Profit Margin - 3 Yr. Avg. 18.3%
Effective Tax Rate 30%
Eff/ Tax Rate - 3 Yr. Avg. 30.1%
Payout Ratio 18.4%

ROP stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ROP stock intrinsic value calculation we used $3790 million for the last fiscal year's total revenue generated by Roper Technologies. The default revenue input number comes from 2016 income statement of Roper Technologies. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ROP stock valuation model: a) initial revenue growth rate of 21.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.8%, whose default value for ROP is calculated based on our internal credit rating of Roper Technologies, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Roper Technologies.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ROP stock the variable cost ratio is equal to 71.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for ROP stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Roper Technologies.

Corporate tax rate of 27% is the nominal tax rate for Roper Technologies. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ROP stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ROP are equal to 84.8%.

Life of production assets of 43.5 years is the average useful life of capital assets used in Roper Technologies operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ROP is equal to -0.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $5789 million for Roper Technologies - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 102.229 million for Roper Technologies is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Roper Technologies at the current share price and the inputted number of shares is $26.1 billion.

RELATED COMPANIES Price Int.Val. Rating
IEX IDEX 131.33 96.78  sell
GE General Electr 17.91 23.56  hold
TMO Thermo Fisher 189.49 73.48  str.sell
PINC Premier 29.50 60.33  str.buy
TFX Teleflex 249.86 85.76  str.sell
DHR Danaher 93.72 57.36  sell
ESL Esterline Tech 70.90 83.47  hold
COO Cooper 229.66 121.31  sell

COMPANY NEWS

▶ Best move to just keep buying? 5 trades   [Nov-21-17 05:00PM  CNBC Videos]
▶ DAT Joins Trucking-Focused Blockchain Group   [11:58AM  GlobeNewswire]
▶ Crane Shows Rising Relative Price Performance; Still Shy Of Key Threshold   [Oct-25-17 03:00AM  Investor's Business Daily]
▶ Stocks that will give your portfolio a buzz   [Oct-06-17 05:25PM  CNBC Videos]
▶ DAT Solutions Adds 5 TMS Integration Partners   [Oct-03-17 08:16AM  GlobeNewswire]
▶ Roper Technologies Announces Dividend   [Sep-25-17 02:00PM  GlobeNewswire]
▶ Stocks To Watch: Roper Technologies Sees RS Rating Rise To 83   [03:00AM  Investor's Business Daily]
▶ DAT Provides Resources and Funds for Hurricane Relief   [Sep-19-17 01:48PM  GlobeNewswire]
▶ Chemed Getting Closer To Key Technical Measure   [Sep-18-17 03:00AM  Investor's Business Daily]
▶ Dividend Yield of Stanley Black & Decker   [12:42PM  Market Realist]
▶ Roper Technologies Continues Its Transformation   [Aug-01-17 06:54PM  Motley Fool]
▶ Roper Technologies tops 2Q profit forecasts   [Jul-31-17 10:08PM  Associated Press]
▶ Roper Technologies tops 2Q profit forecasts   [07:04AM  Associated Press]
▶ Pity This Industrial CEO's Successor   [10:31AM  Bloomberg]
▶ DAT Solutions Names New Product VP   [Jun-29-17 12:11PM  GlobeNewswire]
▶ 5 Companies Reach 52-Week Highs   [Jun-21-17 01:14PM  GuruFocus.com]
▶ Roper Technologies Announces Dividend   [Jun-12-17 10:30AM  GlobeNewswire]
▶ Roper Technologies To Present At Stifel Investor Conference   [Jun-08-17 11:30AM  GlobeNewswire]
▶ Five Tampa Bay companies make the new Fortune 500 list   [Jun-07-17 02:30PM  American City Business Journals]
▶ The highest-paid CEOs by state   [May-25-17 06:35AM  Associated Press]
▶ Roper Technologies Upgrades Guidance   [May-05-17 11:02AM  Motley Fool]
▶ A Bet On Niche Manufacturing   [May-02-17 06:35AM  Forbes]
▶ Roper Technologies tops 1Q profit forecasts   [07:12AM  Associated Press]
Financial statements of ROP
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.