Orin
FTVNYSE·Hardware, Equipment & Parts

Fortive Corporation FTV

Market cap $17.0BP/E 32.7× trailingGross margin 63.2%Reports Wed 28 Oct, before the open
$56.26
+0.31 (+0.55%)Wed close 16:00 ET
52-wk $47.31 – $64.56
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Orin's take
0.62conviction · moderate
Refreshed 22 Aug · take v7. A new filing or a print queues the next refresh.

Fortive's post-divestiture operating momentum is genuine — Q2 2026 delivered 6.7% core revenue growth, 12% adjusted EBITDA growth, and a 28% adjusted EPS increase, prompting a raised full-year outlook — but the stock trades at 34.2x trailing P/E, a 64% premium to the peer median of 20.9x, offering limited margin of safety against a still-depressed FY2025 revenue base of $5.14B and diluted EPS of $1.74. Technicals have deteriorated since the earnings-driven 7.1% drop on July 29: the stock at $58.90 sits below its 50-day MA of $61.14 with a negative MACD histogram and RSI near 40, while smart money has cooled from a score of 0.1035 in Q4 2025 to -0.0397 as of Q2 2026.

The 16.7% dividend increase signals management confidence, but the payout remains nominal and doesn't meaningfully change the risk/reward at current valuation levels.

What could go wrong

  • Valuation compression. At 34.2x P/E versus a peer median of 20.9x, any deceleration in core growth or guidance miss could trigger a sharp de-rating, especially after the stock already fell 7.1% post-Q2 earnings.
  • Smart money outflow. The smart money score deteriorated from 0.1035 in Q4 2025 to -0.0397 in Q2 2026, indicating institutional positioning has turned slightly net-negative even as fund count rose to 59.
  • Post-divestiture revenue base. FY2025 revenue of $5.14B represents a 17.5% YoY decline from $6.23B in FY2024; if core growth does not sustain mid-single digits, the slimmed-down entity could struggle to justify its premium multiple.
  • Technical breakdown. The stock is trading below its 50-day MA of $61.14 with a negative MACD histogram of -0.195 and RSI at 39.6; a break below the 200-day MA of $57.59 would signal further downside.

What would change my mind

Sustained core growth acceleration. Q3 2026 core revenue growth exceeds 7% and adjusted EPS growth exceeds 20% with another guidance raisebullish
Valuation re-rating toward peers. P/E compresses toward 25x or below through either price decline or earnings expansion, narrowing the premium to peer medianbullish
Smart money reversal. Smart money score turns positive above 0.05 in the next 13F filing periodbullish
Core growth deceleration. Q3 2026 core revenue growth falls below 4% or guidance is loweredbearish

Where this comes from: MarketBeat Q2 earnings call highlights, 2026-07-29 · peer_relative composite · FMP FY2025 annual + derived_metrics · GuruFocus news, 2026-07-29. Orin's read on FTV; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Price T Rowe Associates /Md/$1.5B0.1% of fund
Vanguard Capital Management$1.2B0.0% of fund
Viking Global Investors$1.2B3.5% of fund
State Street$832.9M0.0% of fund
Vanguard Portfolio Management$781.5M0.0% of fund
Geode Capital Management$556.8M0.0% of fund

86 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 126 Form 4 filings, net $1.5M. Of the 50 on hand, 0 were open-market purchases and 2 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Technology
MetricNowOwn medianSector
P/E32.7×23.7×53.3×
EV/EBITDA18.8×13.9×
P/S3.94×3.22×
P/B2.8×1.9×

Its P/E sits 80th percentile of its own last 5 years (+1.46σ from its own mean).

What the price assumes

5.8%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.0B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

30 firms · 2026-09-23
Consensus target

$65

$59$68 · +15% against today's price

How they rate it
  • 11 buy or overweight
  • 17 hold
  • 2 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 23.7× of 7 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
FTVFortive Corporation$17B32.7×18.8×63.2%12.4%9%
COHRCoherent, Inc.$59B69.1×39.2×37.5%11.3%8%
CPAYCorpay, Inc.$26B23.7×13.7×73.3%22.7%30%
FFIVF5, Inc.$26B35.9×25.3×82.2%22.0%20%
FNFabrinet$14B30.3×25.3×12.0%10.2%21%
GDDYGoDaddy Inc.$13B14.2×11.0×63.8%17.8%661%
GENGen Digital Inc.$16B15.1×10.1×78.0%20.7%42%
ITGartner, Inc.$12B16.0×10.3×68.9%12.0%401%
TRMBTrimble Inc.$14B57.3×68.4%-2.8%-2%

The median is of the 7 peers listed above and nothing else — check it against the column. This company trades 37.8% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 12.0×FY25 31.5×

What its sector has traded at

Technology
FY14 9.0×FY26 48.0×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$59$61.29 · −4%2026-06-10
Levered DCF$58$61.29 · −5%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $56.26
52-week range$47 – $65
Analyst targets$59 – $68
Standard DCF$59 as of 2026-06-10, when it was $61.29
Levered DCF$58 as of 2026-06-10, when it was $61.29
At own 5y-median P/E (24×)$41
At 5y P/E range (23–33×)$39 – $57
At sector P/E (53×)$92

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.