Intrinsic value of Roper Technologies - ROP

Previous Close

$231.51

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$231.51

 
Intrinsic value premium content
 
Up/down potential premium content
 
Rating premium content
 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

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 23.4

 

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
  7.10
  6.89
  6.70
  6.53
  6.38
  6.24
  6.12
  6.00
  5.90
  5.81
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
  5.11
  5.10
Revenue, $m
  3,790
  4,059
  4,339
  4,630
  4,932
  5,246
  5,574
  5,915
  6,270
  6,640
  7,026
  7,429
  7,849
  8,288
  8,747
  9,226
  9,727
  10,252
  10,800
  11,374
  11,975
  12,604
  13,264
  13,954
  14,678
  15,436
  16,231
  17,065
  17,939
  18,856
  19,817
Variable operating expenses, $m
 
  2,833
  2,968
  3,109
  3,256
  3,408
  3,567
  3,732
  3,905
  4,084
  4,271
  3,602
  3,806
  4,018
  4,241
  4,473
  4,716
  4,970
  5,236
  5,515
  5,806
  6,111
  6,431
  6,766
  7,117
  7,484
  7,870
  8,274
  8,698
  9,142
  9,608
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
  2,833
  2,968
  3,109
  3,256
  3,408
  3,567
  3,732
  3,905
  4,084
  4,271
  3,602
  3,806
  4,018
  4,241
  4,473
  4,716
  4,970
  5,236
  5,515
  5,806
  6,111
  6,431
  6,766
  7,117
  7,484
  7,870
  8,274
  8,698
  9,142
  9,608
Operating income, $m
  1,054
  1,226
  1,370
  1,520
  1,676
  1,838
  2,007
  2,182
  2,365
  2,556
  2,755
  3,827
  4,044
  4,270
  4,506
  4,753
  5,011
  5,281
  5,564
  5,859
  6,169
  6,493
  6,833
  7,189
  7,561
  7,952
  8,362
  8,791
  9,241
  9,714
  10,209
EBITDA, $m
  1,294
  2,203
  2,355
  2,513
  2,677
  2,848
  3,026
  3,211
  3,403
  3,604
  3,814
  4,032
  4,261
  4,499
  4,748
  5,008
  5,280
  5,565
  5,862
  6,174
  6,500
  6,842
  7,200
  7,575
  7,967
  8,379
  8,811
  9,263
  9,738
  10,235
  10,757
Interest expense (income), $m
  105
  203
  224
  245
  267
  290
  313
  338
  364
  391
  418
  447
  478
  509
  542
  577
  613
  651
  690
  731
  775
  820
  867
  917
  969
  1,023
  1,080
  1,140
  1,203
  1,269
  1,338
Earnings before tax, $m
  941
  1,023
  1,146
  1,275
  1,409
  1,548
  1,693
  1,844
  2,001
  2,165
  2,336
  3,380
  3,566
  3,760
  3,964
  4,176
  4,398
  4,630
  4,873
  5,128
  5,394
  5,673
  5,965
  6,272
  6,592
  6,929
  7,281
  7,651
  8,038
  8,445
  8,871
Tax expense, $m
  282
  276
  310
  344
  380
  418
  457
  498
  540
  585
  631
  912
  963
  1,015
  1,070
  1,128
  1,187
  1,250
  1,316
  1,385
  1,456
  1,532
  1,611
  1,693
  1,780
  1,871
  1,966
  2,066
  2,170
  2,280
  2,395
Net income, $m
  659
  747
  837
  931
  1,029
  1,130
  1,236
  1,346
  1,461
  1,581
  1,706
  2,467
  2,603
  2,745
  2,893
  3,048
  3,211
  3,380
  3,558
  3,743
  3,938
  4,141
  4,355
  4,578
  4,812
  5,058
  5,315
  5,585
  5,868
  6,165
  6,476

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
  14,549
  15,551
  16,593
  17,677
  18,804
  19,978
  21,200
  22,472
  23,799
  25,183
  26,626
  28,133
  29,707
  31,351
  33,069
  34,865
  36,744
  38,710
  40,767
  42,921
  45,177
  47,540
  50,015
  52,609
  55,327
  58,177
  61,165
  64,298
  67,583
  71,029
Adjusted assets (=assets-cash), $m
  13,568
  14,549
  15,551
  16,593
  17,677
  18,804
  19,978
  21,200
  22,472
  23,799
  25,183
  26,626
  28,133
  29,707
  31,351
  33,069
  34,865
  36,744
  38,710
  40,767
  42,921
  45,177
  47,540
  50,015
  52,609
  55,327
  58,177
  61,165
  64,298
  67,583
  71,029
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
  3,369
  3,601
  3,842
  4,093
  4,355
  4,626
  4,909
  5,204
  5,511
  5,832
  6,166
  6,515
  6,879
  7,260
  7,658
  8,074
  8,509
  8,964
  9,440
  9,939
  10,462
  11,009
  11,582
  12,183
  12,812
  13,472
  14,164
  14,889
  15,650
  16,448
Working capital, $m
  332
  -24
  -26
  -28
  -30
  -31
  -33
  -35
  -38
  -40
  -42
  -45
  -47
  -50
  -52
  -55
  -58
  -62
  -65
  -68
  -72
  -76
  -80
  -84
  -88
  -93
  -97
  -102
  -108
  -113
  -119
Total debt, $m
  6,210
  6,403
  7,005
  7,630
  8,280
  8,957
  9,661
  10,394
  11,157
  11,954
  12,784
  13,650
  14,554
  15,498
  16,484
  17,515
  18,593
  19,720
  20,900
  22,134
  23,427
  24,780
  26,198
  27,683
  29,239
  30,870
  32,580
  34,373
  36,253
  38,224
  40,292
Total liabilities, $m
  8,536
  8,729
  9,331
  9,956
  10,606
  11,283
  11,987
  12,720
  13,483
  14,280
  15,110
  15,976
  16,880
  17,824
  18,810
  19,841
  20,919
  22,046
  23,226
  24,460
  25,753
  27,106
  28,524
  30,009
  31,565
  33,196
  34,906
  36,699
  38,579
  40,550
  42,618
Total equity, $m
  5,789
  5,819
  6,220
  6,637
  7,071
  7,522
  7,991
  8,480
  8,989
  9,520
  10,073
  10,651
  11,253
  11,883
  12,540
  13,227
  13,946
  14,698
  15,484
  16,307
  17,169
  18,071
  19,016
  20,006
  21,044
  22,131
  23,271
  24,466
  25,719
  27,033
  28,412
Total liabilities and equity, $m
  14,325
  14,548
  15,551
  16,593
  17,677
  18,805
  19,978
  21,200
  22,472
  23,800
  25,183
  26,627
  28,133
  29,707
  31,350
  33,068
  34,865
  36,744
  38,710
  40,767
  42,922
  45,177
  47,540
  50,015
  52,609
  55,327
  58,177
  61,165
  64,298
  67,583
  71,030
Debt-to-equity ratio
  1.073
  1.100
  1.130
  1.150
  1.170
  1.190
  1.210
  1.230
  1.240
  1.260
  1.270
  1.280
  1.290
  1.300
  1.310
  1.320
  1.330
  1.340
  1.350
  1.360
  1.360
  1.370
  1.380
  1.380
  1.390
  1.390
  1.400
  1.400
  1.410
  1.410
  1.420
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
  747
  837
  931
  1,029
  1,130
  1,236
  1,346
  1,461
  1,581
  1,706
  2,467
  2,603
  2,745
  2,893
  3,048
  3,211
  3,380
  3,558
  3,743
  3,938
  4,141
  4,355
  4,578
  4,812
  5,058
  5,315
  5,585
  5,868
  6,165
  6,476
Depreciation, amort., depletion, $m
  240
  977
  985
  993
  1,001
  1,010
  1,019
  1,028
  1,038
  1,048
  1,059
  206
  217
  229
  242
  255
  269
  284
  299
  315
  331
  349
  367
  386
  406
  427
  449
  472
  496
  522
  548
Funds from operations, $m
  944
  1,724
  1,822
  1,924
  2,030
  2,140
  2,255
  2,375
  2,499
  2,629
  2,765
  2,673
  2,820
  2,974
  3,135
  3,304
  3,480
  3,664
  3,856
  4,058
  4,269
  4,490
  4,722
  4,964
  5,219
  5,485
  5,764
  6,057
  6,364
  6,686
  7,024
Change in working capital, $m
  -20
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -2
  -3
  -3
  -3
  -3
  -3
  -3
  -3
  -3
  -4
  -4
  -4
  -4
  -4
  -5
  -5
  -5
  -5
  -6
  -6
Cash from operations, $m
  964
  2,236
  1,823
  1,925
  2,031
  2,142
  2,257
  2,377
  2,501
  2,631
  2,767
  2,675
  2,823
  2,977
  3,138
  3,307
  3,483
  3,667
  3,860
  4,061
  4,273
  4,494
  4,726
  4,968
  5,223
  5,490
  5,769
  6,062
  6,370
  6,692
  7,030
Maintenance CAPEX, $m
  0
  -105
  -112
  -120
  -128
  -136
  -145
  -154
  -164
  -173
  -184
  -194
  -206
  -217
  -229
  -242
  -255
  -269
  -284
  -299
  -315
  -331
  -349
  -367
  -386
  -406
  -427
  -449
  -472
  -496
  -522
New CAPEX, $m
  -40
  -224
  -232
  -241
  -251
  -261
  -272
  -283
  -295
  -307
  -320
  -334
  -349
  -364
  -381
  -398
  -416
  -435
  -455
  -476
  -499
  -522
  -547
  -573
  -601
  -630
  -660
  -692
  -725
  -761
  -798
Cash from investing activities, $m
  -3,753
  -329
  -344
  -361
  -379
  -397
  -417
  -437
  -459
  -480
  -504
  -528
  -555
  -581
  -610
  -640
  -671
  -704
  -739
  -775
  -814
  -853
  -896
  -940
  -987
  -1,036
  -1,087
  -1,141
  -1,197
  -1,257
  -1,320
Free cash flow, $m
  -2,789
  1,908
  1,479
  1,564
  1,652
  1,744
  1,840
  1,939
  2,043
  2,151
  2,263
  2,146
  2,268
  2,395
  2,528
  2,667
  2,811
  2,963
  3,121
  3,286
  3,459
  3,640
  3,830
  4,028
  4,236
  4,454
  4,682
  4,921
  5,172
  5,435
  5,710
Issuance/(repayment) of debt, $m
  2,932
  594
  601
  625
  650
  676
  704
  733
  764
  796
  830
  866
  904
  944
  986
  1,031
  1,078
  1,127
  1,180
  1,235
  1,292
  1,353
  1,418
  1,485
  1,556
  1,631
  1,710
  1,793
  1,880
  1,971
  2,068
Issuance/(repurchase) of shares, $m
  3
  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 from financing (excl. dividends), $m  
  2,926
  594
  601
  625
  650
  676
  704
  733
  764
  796
  830
  866
  904
  944
  986
  1,031
  1,078
  1,127
  1,180
  1,235
  1,292
  1,353
  1,418
  1,485
  1,556
  1,631
  1,710
  1,793
  1,880
  1,971
  2,068
Total cash flow (excl. dividends), $m
  100
  2,502
  2,080
  2,189
  2,303
  2,421
  2,544
  2,673
  2,807
  2,947
  3,093
  3,012
  3,172
  3,340
  3,514
  3,698
  3,889
  4,090
  4,300
  4,521
  4,752
  4,994
  5,247
  5,514
  5,792
  6,085
  6,392
  6,714
  7,052
  7,406
  7,778
Retained Cash Flow (-), $m
  -490
  -386
  -401
  -417
  -433
  -451
  -469
  -489
  -509
  -531
  -553
  -577
  -603
  -629
  -658
  -687
  -719
  -752
  -786
  -823
  -862
  -902
  -945
  -990
  -1,038
  -1,087
  -1,140
  -1,195
  -1,253
  -1,314
  -1,378
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
 
  2,471
  1,679
  1,772
  1,869
  1,970
  2,075
  2,184
  2,298
  2,416
  2,540
  2,435
  2,570
  2,710
  2,857
  3,010
  3,171
  3,339
  3,514
  3,698
  3,890
  4,091
  4,302
  4,523
  4,755
  4,998
  5,252
  5,519
  5,799
  6,092
  6,399
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
 
  2,292
  1,435
  1,384
  1,323
  1,252
  1,174
  1,089
  999
  905
  810
  653
  572
  493
  418
  349
  286
  231
  182
  141
  106
  79
  57
  40
  27
  18
  12
  7
  5
  3
  2
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Roper Technologies, Inc. designs and develops software, and engineered products and solutions. It operates in four segments: Medical & Scientific Imaging; RF Technology; Industrial Technology; and Energy Systems & Controls. The company offers diagnostic and laboratory software solutions; patient positioning devices and related software, 3-D measurement technology, and diagnostic and therapeutic disposable products; non-invasive instruments and video laryngoscopes; and a cloud-based financial analytics and performance software platform, as well as electron filters, charged couple devices, and complementary metal oxide semiconductor cameras, detectors, and related software. It also offers radio frequency identification communication technology and software solutions that are used primarily in toll and traffic systems, security and access controls, campus card systems, card readers, software-as-a-service, and metering and remote monitoring applications, as well as management software for legal and construction firms. In addition, the company offers fluid handling pumps, materials analysis equipment and consumables, leak testing equipment, flow measurement and metering equipment, and water meter and automatic meter reading products and systems. Further, it provides control systems, fluid properties testing equipment, industrial valves and controls, vibration sensors and controls, and non-destructive inspection and measurement products and solutions. Additionally, the company provides enterprise software and information solutions for government contractors, professional services firms, and other project-based businesses. It serves healthcare, transportation, commercial construction, food, energy, water, education, and academic research markets in the United States and internationally. The company was formerly known as Roper Industries, Inc. and changed its name to Roper Technologies, Inc. in April 2015. The company was founded in 1981 and is based in Sarasota, Florida.

FINANCIAL RATIOS  of  Roper Technologies (ROP)

Valuation Ratios
P/E Ratio 35.7
Price to Sales 6.2
Price to Book 4.1
Price to Tangible Book
Price to Cash Flow 24.4
Price to Free Cash Flow 25.5
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 7.1% 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 83%.

Life of production assets of 43.3 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 101.052 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 $23.4 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
LDR Landauer 53.10 prem.  prem.
IEX IDEX 112.70 prem.  prem.
GE General Electr 27.57 prem.  prem.
TMO Thermo Fisher 174.44 prem.  prem.
PINC Premier 35.35 prem.  prem.
TFX Teleflex 206.11 prem.  prem.
DHR Danaher 85.66 prem.  prem.
ESL Esterline Tech 95.45 prem.  prem.
COO Cooper 246.19 prem.  prem.

COMPANY NEWS

▶ 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]
▶ Here are Tampa Bays top performing stocks in Q1 2017   [Apr-03-17 08:33AM  at bizjournals.com]
▶ Here are Tampa Bays top performing stocks in Q1 2017   [08:33AM  American City Business Journals]
▶ Roper Technologies Announces Dividend   [Mar-14-17 09:00AM  GlobeNewswire]
▶ Raymond James moves into benchmark stock index   [08:05AM  at bizjournals.com]
▶ Roper Technologies Announces Senior Executive Appointments   [Mar-10-17 06:55AM  GlobeNewswire]
▶ UMs Florida stock index bests S&P 500   [08:00AM  at bizjournals.com]
▶ South Florida CEO makes most overpaid list   [Feb-14-17 07:33AM  at bizjournals.com]
▶ Tampa Bay CEO makes most overpaid list   [Feb-13-17 02:55PM  at bizjournals.com]
▶ Roper Technologies Ends 2016 on a Strong Note   [Feb-10-17 09:37AM  at Motley Fool]
Stock chart of ROP Financial statements of ROP Annual reports 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.