Fortive (FTV): Assessing Valuation After Launch of Fluke’s New Ground Fault Locator for Solar Technicians

Fortive (FTV) is making headlines with the launch of the Fluke GFL-1500 Ground Fault Locator, a new technology designed to simplify and speed up ground fault detection for solar technicians. This move highlights Fortive’s continued focus on supporting renewable energy and improving system efficiency.

See our latest analysis for Fortive.

Fortive’s latest innovation comes during a year of mixed momentum. After a sharp sell-off earlier in 2024, the company’s 1-day share price return of 1.63% offers a rare bright spot, even as its year-to-date share price return sits at -34.71% and the 1-year total shareholder return is down 17.44%. Longer-term holders, though, have still eked out a modest positive total return over three and five years, indicating the bounce-back potential investors are watching for.

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With shares trading well below analyst price targets, but revenue growth still under pressure, the central question remains: Is Fortive an overlooked bargain or is it simply reflecting all of its current and future prospects?

Most Popular Narrative: 15% Undervalued

Compared to Fortive’s last close at $48.58, the most followed narrative estimates fair value at $57.25. The gap has investors sizing up just how much future upside is genuinely on the table.

"Fortive's increasing mix of recurring revenues, now at 50%, through expansion of software, services, and subscription models, including double-digit ARR growth at key brands like Fluke and SaaS momentum at AHS, is expected to drive improved revenue visibility and margin expansion in future periods. This supports both top-line growth and higher net margins."

Read the complete narrative.

What’s really fueling this fair value? The narrative alludes to a powerful cocktail of digital transformation, sticky recurring income, and strategic bets on next-gen industrial tech. The biggest surprise, though, sits in its bold profitability and margin assumptions and the premium earnings multiple the market must ultimately accept. Do you want to know what else the narrative projects?

Result: Fair Value of $57.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent tariff uncertainty or weak public sector spending could undermine the company's recovery prospects and place pressure on revenue growth expectations.

Find out about the key risks to this Fortive narrative.

Another View: SWS DCF Model Puts a Different Spin on Value

While many look to analyst targets for direction, our DCF model shows a slightly less optimistic outlook. It estimates Fortive’s fair value around $46.44, which is actually below the current share price. Does this mean the market is already pricing in more risk, or is there unknown upside left untapped?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Fortive for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Fortive Narrative

If you see the story differently or want to dig deeper into the numbers, you can easily put together your own narrative in just a few minutes: Do it your way.

A great starting point for your Fortive research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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