Assessing Roper Technologies (ROP) Valuation After Mixed 2025 Earnings And Software Shift

Why Roper’s latest earnings are getting fresh attention

Roper Technologies (ROP) just released fourth quarter and full year 2025 results, showing higher sales but lower net income, along with a completed US$500 million buyback that has investors taking a closer look at the stock.

See our latest analysis for Roper Technologies.

At a share price of US$362.42, Roper’s 1 month share price return of a 16.65% decline and 3 month share price return of a 19.43% decline point to fading momentum. The 1 year total shareholder return of a 36.31% decline suggests longer term holders have also felt the pressure as investors weigh higher sales against softer net income and the completed US$500 million buyback.

If Roper’s recent pullback has you thinking about where else software driven growth might show up, it could be a good moment to scan 33 AI infrastructure stocks for other potential ideas.

With Roper now trading at US$362.42 and sitting at an estimated 34% discount to analyst price targets and a 34% intrinsic discount, you have to ask: is this selloff a mispricing, or is the market already baking in future growth?

Most Popular Narrative: 21.6% Undervalued

Roper Technologies' most followed narrative pegs fair value at about $462 per share, comfortably above the latest close of $362.42, which is why many investors are reassessing the recent selloff.

Ongoing, disciplined capital deployment into high growth, high margin vertical market software leaders (e.g., Subsplash, CentralReach) is incrementally raising the portfolio's underlying organic growth rate and long term margin profile, supporting robust free cash flow compounding and the potential for EBITDA margin expansion.

Read the complete narrative.

Curious what kind of revenue trajectory and margin profile are baked into that fair value, and how sensitive it is to slower organic growth or fewer deals? The full narrative lays out the numbers driving that $462 figure, including the earnings power Roper might need to justify it and how a higher discount rate feeds into the model.

Result: Fair Value of $462.19 (UNDERVALUED)

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

However, the story can change quickly if acquisition-heavy growth stumbles or organic growth in key verticals slows faster than analysts currently model.

Find out about the key risks to this Roper Technologies narrative.

Build Your Own Roper Technologies Narrative

If you are not fully on board with this view or simply prefer to test your own assumptions against the data, you can build a custom Roper narrative in just a few minutes, starting with Do it your way.

A great starting point for your Roper Technologies research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Ready for more investment ideas?

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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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