Roper Technologies, Inc. ROP
Roper Technologies trades at 16.3x P/E and 11.3x EV/EBITDA — roughly 53% and 49% below the industrial-machinery peer medians of 34.9x and 22.1x — despite running a software-centric model with 69.2% gross margins and $2.49B in FY2025 free cash flow on $7.90B revenue. Revenue grew 12.3% in FY2025 and management recently lifted its outlook citing AI deployment and vertical-market software momentum, while the stock has reclaimed both its 50-day ($362.28) and 200-day ($378.13) moving averages.
The main caveat is that EPS declined 1.1% in FY2025 as total debt rose to $9.30B from $7.67B, but the combination of discounted multiples, strong FCF generation, and positive operational catalysts supports accumulation.
What could go wrong
- EPS erosion despite revenue growth. FY2025 EPS fell 1.1% and net income declined 0.8% even as revenue rose 12.3%, suggesting acquisition-related costs or amortization are diluting bottom-line leverage.
- Rising debt load. Total debt increased to $9.30B in FY2025 from $7.67B in FY2024, raising interest expense risk if rates stay elevated.
- Near-term momentum softening. MACD histogram turned negative at -1.65 with the line below signal, indicating some short-term momentum loss despite the stock trading above both key moving averages.
- Smart money conviction is thin. The smart money score as of Q2 2026 is only 0.0104 with 61 funds, a modest improvement from negative readings but not a strong institutional endorsement.
What would change my mind
Where this comes from: peer_relative · fundamentals FY2025 · derived_metrics FY2025 · fundamentals FY2024–2025. Orin's read on ROP; not advice.
Twelve months actual closes to 2026-09-24 · actual filings
50-day average 200-day average · volume below
On file
All ROP filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Windacre Partnership | $2.9B | 28.9% of fund |
| Vanguard Capital Management | $2.2B | 0.0% of fund |
| Vanguard Portfolio Management | $1.9B | 0.1% of fund |
| State Street | $1.7B | 0.1% of fund |
| Invesco | $1.4B | 0.1% of fund |
| Geode Capital Management | $1.1B | 0.1% of fund |
90 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 67 Form 4 filings, net $21.5M. Of the 50 on hand, 4 were open-market purchases and 10 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about ROP
Orin answers questions about ROP from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 15.1× | 38.5× | 44.5× |
| EV/EBITDA | 10.6× | 24.1× | — |
| P/S | 4.44× | 8.52× | — |
| P/B | 2.0× | 3.0× | — |
Its P/E sits below all 5 of the last 5 years (−4.33σ from its own mean).
3.5%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $2.5B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$428
$355 – $526 · +18% against today's price
- 14 buy or overweight
- 6 hold
- 3 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
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| ROPRoper Technologies, Inc. | $37B | 15.1× | 10.6× | 69.5% | 30.2% | 13% |
| AMEAMETEK, Inc. | $57B | 36.1× | 24.2× | 36.6% | 20.0% | 15% |
| CARRCarrier Global Corporation | $45B | 37.8× | 20.5× | 24.3% | 5.5% | 9% |
| CMICummins Inc. | $72B | 26.5× | 15.5× | 25.3% | 7.8% | 22% |
| FASTFastenal Company | $58B | 43.0× | 29.9× | 44.7% | 15.5% | 34% |
| GWWW.W. Grainger, Inc. | $60B | 32.6× | 21.2× | 39.4% | 9.9% | 49% |
| PCARPACCAR Inc | $58B | 23.3× | 18.9× | 14.9% | 9.2% | 13% |
| ROKRockwell Automation, Inc. | $48B | 40.5× | 28.9× | 54.5% | 13.4% | 33% |
| XYLXylem Inc. | $24B | 24.4× | 13.8× | 39.2% | 11.1% | 9% |
The median is of the 8 peers listed above and nothing else — check it against the column. This company trades 56.0% below 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
What its sector has traded at
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
| Model | Fair value | Against | Computed |
|---|---|---|---|
| Standard DCF | $1197 | $336.25 · +256% | 2026-06-10 |
| Levered DCF | $1041 | $336.25 · +210% | 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
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.