Is Roper Technologies (ROP) Now Offering Value After A 41.6% Twelve Month Share Price Fall

• If you are wondering whether Roper Technologies at around US$332 per share offers value or just reflects past enthusiasm, the starting point is to separate price moves from underlying worth.
• The stock is up about 2% over the past week, but remains down around 5.2% over the past month and has fallen about 23.6% year to date and 41.6% over the last 12 months, which can change how investors view both upside potential and risk.
• Recent coverage has focused on how software and technology companies like Roper Technologies are being reassessed as investors weigh growth expectations against higher discount rates and tighter financing conditions. That shift in attention has pulled valuation tools, such as cash flow based models and multiples, back into the spotlight for this stock.
• In that context, Roper Technologies currently holds a valuation score of 6 out of 6, and the rest of this article will walk through what that means across different valuation methods while saving a more holistic way to think about value for the end.

Find out why Roper Technologies's -41.6% return over the last year is lagging behind its peers.

Approach 1: Roper Technologies Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model takes estimates of the cash a company could generate in the future and discounts those projections back to a single value in today’s dollars, which becomes an estimate of what the business might be worth now.

For Roper Technologies, the latest twelve month Free Cash Flow is about $2.48b. Analysts provide explicit Free Cash Flow forecasts for the next few years, with figures such as $2.69b in 2026 and $2.92b in 2027. Simply Wall St then extrapolates these inputs further out, resulting in a projected Free Cash Flow of $5.34b in 2035, based on the 2 Stage Free Cash Flow to Equity model.

Pulling those projected cash flows back to today using a discount rate gives an estimated intrinsic value of about $613.58 per share. Compared with a current share price around $332, this estimate suggests the stock is 45.9% below that DCF value, which indicates potential undervaluation on this model alone.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Roper Technologies is undervalued by 45.9%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Roper Technologies.

Approach 2: Roper Technologies Price vs Earnings

For profitable companies, the P/E ratio is a useful shorthand for what investors are paying for each dollar of earnings, which is often how the market quickly compares established businesses in the same sector.

What counts as a “normal” P/E depends on how fast earnings are expected to grow and how risky those earnings appear. Higher expected growth and lower perceived risk usually support a higher P/E, while slower growth or higher uncertainty tend to pull it lower.

Roper Technologies currently trades on a P/E of about 19.6x. That sits below the Software industry average P/E of about 28.4x and also below the peer group average of roughly 31.1x. Simply Wall St’s Fair Ratio for Roper Technologies is 25.6x, which is its proprietary estimate of an appropriate P/E given factors such as earnings growth, profit margins, industry, market cap and specific risks.

This Fair Ratio can be more informative than a simple comparison with peers or the industry, because it adjusts for company specific characteristics rather than assuming all software stocks deserve the same multiple. With the Fair Ratio above the current 19.6x P/E, this approach points to the stock being priced below that indicated level.

Result: UNDERVALUED

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 21 top founder-led companies.

Upgrade Your Decision Making: Choose your Roper Technologies Narrative

Earlier it was mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St’s Community page let you attach a clear story to the numbers by linking your view of Roper Technologies, your assumptions for future revenue, earnings and margins, and your fair value estimate, then comparing that fair value with today’s share price. Narratives automatically refresh when new news or earnings arrive. For example, one investor might back a higher fair value around US$694 based on expectations of stronger AI adoption and faster growth. Another investor might focus on risks and prefer a lower fair value near US$419. You can see, compare and refine those different perspectives in one place to support your own investment decisions.

Do you think there's more to the story for Roper Technologies? Head over to our Community to see what others are saying!

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com