Is Roper Technologies Inc (ROP) overvalued?
On Equity Rank's model estimate, ROP trades close to its fair value (3% below it). Roper Technologies Inc (ROP) last closed at $476.60; the multi-method model fair value is $492.72.
| Price | Model fair value | Price vs model |
|---|---|---|
| $476.60 | $492.72 | 3% below |
What the answer rests on
- 4 of 11 valuation methods put ROP's value above its price and 7 put it below, so the methods disagree.
- To justify today's price, ROP's free cash flow would need to grow about 2.8% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 55.4% a year.
- Over the past year the price sat below the model fair value on 88% of trading days. The gap ranged from 55% below to 7% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind ROP's fair value · What prices assume · Other companies