DCF Tool

ROP

Roper Technologies Inc – Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables
Roper Technologies is a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. Roper operates businesses that design and develop software (both license and software-as-a-service) and engineered products and solutions for a variety of niche end markets.
Analysis Results
Intrinsic Value $621.01
Latest Price $359.64
Relative Value 42% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 14.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 2.21 2.07
2023 2.53 2.22
2024 2.9 2.38
2025 3.32 2.55
2026 3.8 2.73
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 80.1 billion. This corresponds to a present value of 53.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 11.9 billion. Adding in the terminal value gives a total present value of 65.8 billion.

There are presently 106.0 million outstanding shares, so the intrinsic value per share is 621.01.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,421,100,000
Current Cash 351,500,000
Current Liabilities 3,121,800,000
Current Debt 799,200,000
Non-Cash Working Capital (NCWC) -253,000,000
Change in NCWC 245,400,000
EBIT 1,579,700,000
Tax Provision 288,400,000
Depreciation and Amortization 634,100,000
Capital Expenditure -62,600,000
Unlevered Free Cash Flow 2,038,153,516
Current Assets 1,752,300,000
Current Cash 308,300,000
Current Liabilities 2,444,400,000
Current Debt 502,000,000
Non-Cash Working Capital (NCWC) -498,400,000
Change in NCWC 7,000,000
EBIT 1,431,100,000
Tax Provision 259,600,000
Depreciation and Amortization 520,800,000
Capital Expenditure -31,200,000
Unlevered Free Cash Flow 1,620,486,273
Current Assets 1,999,500,000
Current Cash 709,700,000
Current Liabilities 2,397,400,000
Current Debt 602,200,000
Non-Cash Working Capital (NCWC) -505,400,000
Change in NCWC -305,000,000
EBIT 1,498,400,000
Tax Provision 459,500,000
Depreciation and Amortization 416,000,000
Capital Expenditure -52,700,000
Unlevered Free Cash Flow 1,247,588,569
Current Assets 1,610,700,000
Current Cash 364,400,000
Current Liabilities 1,448,200,000
Current Debt 1,500,000
Non-Cash Working Capital (NCWC) -200,400,000
Change in NCWC -60,010,000
EBIT 1,396,400,000
Tax Provision 254,000,000
Depreciation and Amortization 367,000,000
Capital Expenditure -49,100,000
Unlevered Free Cash Flow 1,358,324,045
Current Assets 1,759,402,000
Current Cash 671,327,000
Current Liabilities 2,029,409,000
Current Debt 800,944,000
Non-Cash Working Capital (NCWC) -140,390,000
Change in NCWC -115,394,000
EBIT 1,210,244,000
Tax Provision 62,951,000
Depreciation and Amortization 344,965,000
Capital Expenditure -48,752,000
Unlevered Free Cash Flow 1,317,433,564
Current Assets 1,776,501,000
Current Cash 757,200,000
Current Liabilities 1,445,272,000
Current Debt 400,975,000
Non-Cash Working Capital (NCWC) -24,996,000
Change in NCWC -151,209,000
EBIT 1,054,563,000
Tax Provision 282,007,000
Depreciation and Amortization 240,453,000
Capital Expenditure -37,305,000
Unlevered Free Cash Flow 790,344,539
Current Assets 1,618,047,000
Current Cash 778,511,000
Current Liabilities 720,128,000
Current Debt 6,805,000
Non-Cash Working Capital (NCWC) 126,213,000
Change in NCWC -158,607,000
EBIT 1,027,918,000
Tax Provision 306,278,000
Depreciation and Amortization 204,261,000
Capital Expenditure -36,260,000
Unlevered Free Cash Flow 723,219,876
Current Assets 1,512,105,000
Current Cash 610,430,000
Current Liabilities 627,947,000
Current Debt 11,092,000
Non-Cash Working Capital (NCWC) 284,820,000
Change in NCWC 3,278,000
EBIT 999,473,000
Tax Provision 275,423,000
Depreciation and Amortization 197,284,000
Capital Expenditure -37,644,000
Unlevered Free Cash Flow 863,648,735
Current Assets 1,373,337,000
Current Cash 459,720,000
Current Liabilities 643,091,000
Current Debt 11,016,000
Non-Cash Working Capital (NCWC) 281,542,000
Change in NCWC -26,215,000
EBIT 842,361,000
Tax Provision 215,837,000
Depreciation and Amortization 189,190,000
Capital Expenditure -42,528,000
Unlevered Free Cash Flow 721,718,703
Current Assets 1,245,542,000
Current Cash 370,590,000
Current Liabilities 1,086,210,000
Current Debt 519,015,000
Non-Cash Working Capital (NCWC) 307,757,000
Change in NCWC 14,675,000
EBIT 757,587,000
Tax Provision 203,321,000
Depreciation and Amortization 154,748,000
Capital Expenditure -38,405,000
Unlevered Free Cash Flow 664,289,274

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