Research HubSoftware & Cloud ServicesROPER TECHNOLOGIES INC (ROP)

Coverage:KVYO DDOG CRWD NOW SNOW PLTR ADBE CRM PANW NET SHOP MDB

SEC 10-K / 10-Q Equity ResearchSoftware & Cloud ServicesTicker: ROP

ROPER TECHNOLOGIES INC (ROP) DCF Valuation & Fundamental Primer

ROPER TECHNOLOGIES INC (ROP) currently trades at $449.22 with an enterprise value of $42.98B. Our proprietary institutional model rates ROPER TECHNOLOGIES INC at 74/100 (Grade: B+ · Quality Software Operator). The current market price prices in an implied 5-year revenue CAGR of 16.3% vs. historical growth of 9.7% (Fairly Priced to Fundamentals).

GDA Quality Score

B+74/100

Quality Software Operator

Share Price / DCF Base

$449.22 / $329.84

Enterprise Value

$55.83B

TTM Revenue

$7.04B (+9.7%)

Gross Margin

69.3%

Rule of 40 Score

42.8%

EV / TTM Revenue

7.9×

Structural Moat: Enterprise Software & Cloud Services Switching Costs & Recurring Workflow Integration

Key Growth Catalyst: AI workflow automation, multi-module expansion across enterprise cohorts, and operating margin leverage at Roper Technologies, Inc..

Institutional fundamental teardown of Roper Technologies, Inc. (ROP) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.

Seed ROP in Interactive 3-Statement Model

Section 1 · Intrinsic Valuation Engine

ROPER TECHNOLOGIES INC (ROP) 3-Scenario DCF Valuation Range

WACC: 10.0% · Terminal Growth: 2.5% · Diluted Shares: 107.6M

bear Case DCFSensitivity

$141.16

Implied Equity Value:$15.19B

vs Current ($449.22):-68.6%

base Case DCFPrimary Benchmark

$329.84

Implied Equity Value:$35.50B

vs Current ($449.22):-26.6%

bull Case DCFSensitivity

$555.91

Implied Equity Value:$59.84B

vs Current ($449.22):+23.8%

Interactive What-If DCF SandboxSim Rule of 40: 42.8%

Stress-test ROP's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.

Seed Custom Drivers in /model

1-Click Regimes:

5Y Revenue CAGR9.7%

2%Hist: 9.7%50%

Target FCF Margin33.1%

5%Base: 33.1%45%

WACC Discount Rate10.0%

6.5%Base: 10%14.5%

Terminal Growth (g)2.5%

1.0%Implies 13.7× Y5 FCF4.0%

Accounting Lens:

Simulated Implied Price$329.68

Spread vs Market-26.6%

Simulated EV$42.97B

Effective FCF Margin33.1%

Simulated 5-Year Cash Flow Trajectory (Unlevered FCF vs. Discounted PV)Cumulative 5Y PV: $11.55B

Year 1$7.72B

FCF:$2.56B

PV:$2.32B

Year 2$8.47B

FCF:$2.80B

PV:$2.32B

Year 3$9.29B

FCF:$3.08B

PV:$2.31B

Year 4$10.19B

FCF:$3.37B

PV:$2.30B

Year 5$11.18B

FCF:$3.70B

PV:$2.30B

Enterprise Value Composition Bridge$42.97B

Split between 5-Year Explicit Cash Flows and Discounted Terminal Value

5Y Explicit PV: $11.55B (26.9%)Terminal PV: $31.41B (73.1%)

(+) Balance Sheet Cash & Equivalents+$188.2M

(−) Total Debt Obligations−$7.67B

(=) Implied Equity Value (107.6M shs)$35.49B

2D Institutional Valuation Sensitivity Heatmap

Implied share price & upside/downside spread across 25 valuation states (Current Price: $449.22).

WACC \ Terminal	1.5%	2.0%	2.5%	3.0%	3.5%
8.5%	$374.00 -17%	$401.27 -11%	$433.08 -4%	$470.68 +5%	$515.80 +15%
9.3%	$329.47 -27%	$350.95 -22%	$375.61 -16%	$404.23 -10%	$437.81 -3%
10.0%	$292.83 -35%	$310.10 -31%	$329.68 -27%	$352.05 -22%	$377.86 -16%
10.8%	$262.17 -42%	$276.30 -38%	$292.13 -35%	$310.00 -31%	$330.35 -26%
11.5%	$236.15 -47%	$247.86 -45%	$260.87 -42%	$275.41 -39%	$291.77 -35%

Section 2 · Fundamental Underwriting

Institutional Software Quality Scorecard (74/100 · Grade B+)

Quality Software Operator

Solid software model with clear operating leverage, partially offset by standard SBC or moderate burn.

Cash Conversion22 / 25

Actual: 117% of EBITTarget: Target: ≥100%

Strong cash conversion; 100%+ of operating profit turns into free cash

Dilution Friction25 / 25

Actual: 2.1% of RevTarget: Target: ≤8%

Minimal dilution friction; management compensation aligned with shareholders

Unit Economics15 / 25

Actual: 69% GM / R40: 43%Target: Target: ≥75% GM / ≥40% R40

Solid gross margins with potential for operating leverage at scale

Balance Sheet12 / 25

Actual: -$7.48B Net DebtTarget: Target: Net Cash > 0

Moderate leverage or cash burn; monitor liquidity runway

Core Investment Strengths & Moats

High cash conversion: 100%+ of operating income converted to free cash flow
Low dilution friction: SBC is only 2.1% of revenue

Key Operational & Dilution Risks

Section 3 · Expectations Investing

Reverse-DCF Solver: What Growth is Priced Into ROP?

Fairly Priced to Fundamentals

Market implies 16.3% annual revenue growth over next 5 years (17.4% dilution-adjusted), in line with company run-rate.

Implied 5-Year Revenue CAGR

16.3%

Required to justify $55.83B EV

Historical Run-Rate CAGR

9.7%

Audited multi-year top-line trajectory

Growth Hurdle Spread

+6.6%

Implied hurdle minus historical growth

Implied FCF Margin @ Hist. Growth

42.9%

Steady-state FCF margin needed at current CAGR

Institutional Dilution-Adjusted Hurdle Lens

Headline Reverse-DCF ignores Stock-Based Compensation (2.1% of revenue) and annual share dilution (0.2%/yr). Accounting for both requires 17.4% 5-year revenue CAGR to justify $449.22/sh on a true per-share economic cash flow basis.

True Economic Hurdle17.4%

SBC & Dilution Hurdle Tax+1.1% / yr

Section 4 · 5-Year Forecast Schedule

ROPER TECHNOLOGIES INC (ROP) 5-Year Fundamental Forecast

Customize in Live Engine

Statement Line Item	TTM Audited Base	TTM	Y1	Y2	Y3	Y4	Y5
Revenue	$7.04B	$7.04B	$7.72B	$8.48B	$9.30B	$10.21B	$11.20B
Gross Profit	$4.88B	$4.88B	$5.35B	$5.87B	$6.45B	$7.07B	$7.76B
Operating Income (EBIT)	$2.00B	$2.00B	$2.19B	$2.40B	$2.64B	$2.90B	$3.18B
Stock-Based Compensation (SBC)	$145.9M	$145.7M	$159.9M	$175.5M	$192.6M	$211.3M	$231.9M
Unlevered Free Cash Flow (FCF)	$2.33B	$2.33B	$2.55B	$2.80B	$3.08B	$3.38B	$3.70B
SBC-Adjusted True Cash Flow	$2.18B	$2.18B	$2.39B	$2.63B	$2.88B	$3.16B	$3.47B

Section 5 · Relative Valuation Multiples & Regression

Software & Cloud Services Peer Comparables & Rule of 40 Regression

Click any peer node or ticker to open its dedicated equity research report

Rule of 40 vs. EV / Revenue Multiple Regression

OLS Fit: EV/Rev = -25.6 + 0.73 × (Rule of 40) · R² = 77%

Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.

ROP Actual vs. Reg. Multiple7.9× vs 5.8× fair

Reg.-Implied Share Price$311.32 (+36.2% Premium)

ROPROPER TECHNOLOGIES INC·Rule of 40: 42.8%·Actual EV/Rev: 7.9×·Regression Fair Multiple: 5.8×

+36.2% Above Trendline (Premium)Open ROP Report

Company	Ticker	Market Cap	TTM Revenue	Gross Margin	FCF Margin	Rule of 40	SBC % Rev	EV / Rev
ROPER TECHNOLOGIES INC	ROP	$48.35B	$7.04B	69.3%	33.1%	42.8%	2.1%	7.9×
ServiceNow	NOW	$152.61B	$10.98B	79.2%	31.1%	54.2%	15.9%	13.9×
Workday, Inc.	WDAY	$50.35B	$8.00B	75.0%	27.4%	43.9%	19.0%	6.4×
Salesforce	CRM	$217.10B	$37.90B	77.2%	32.8%	42.8%	8.4%	5.8×
Datadog	DDOG	$46.05B	$2.68B	80.8%	31.1%	57.7%	21.3%	17.4×
Snowflake Inc.	SNOW	$71.79B	$3.63B	66.5%	25.2%	57.7%	40.8%	20.0×
Hubspot	HUBS	$19.89B	$2.63B	85.0%	21.3%	52.7%	19.2%	7.7×
Peer Cohort Median Benchmark (N=6)				78.2%	29.2%	53.5%	19.1%	10.8×

Section 6 · Downside Protection & Multiple Sensitivity

EV / Revenue Multiple Compression Stress Test

Multiple Scenario	EV / Revenue	Implied Enterprise Value	Implied Equity Value	Implied Share Price	Delta vs Current
Current Multiple	7.9×	$55.83B	$48.35B	$449.22	0.0%
-20% Multiple Compression	6.3×	$44.67B	$37.19B	$345.48	-20.0%
-35% Multiple Compression	5.2×	$36.29B	$28.81B	$267.67	-35.0%
Software Baseline Floor (5.0× EV/Rev)	5.0×	$35.20B	$27.72B	$257.49	-37.0%

Section 7 · Investor Diligence FAQ

Frequently Asked Questions: ROPER TECHNOLOGIES INC (ROP) Valuation

What is ROPER TECHNOLOGIES INC (ROP)'s intrinsic DCF valuation and implied share price?

Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, ROPER TECHNOLOGIES INC (ROP) has a Base Case implied value of $329.84 per share (with a Bear Case of $141.16 and a Bull Case of $555.91), compared to its current price of $449.22. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.

What is ROPER TECHNOLOGIES INC (ROP)'s Rule of 40 score and Free Cash Flow margin?

ROPER TECHNOLOGIES INC achieves a Rule of 40 score of 42.8%, combining a 9.7% revenue growth run-rate with a 33.1% TTM free cash flow margin on $7.04B in trailing twelve-month revenue. In the Software & Cloud Services peer cohort, the median Rule of 40 benchmark is 53.5%.

What revenue growth rate is priced into ROP stock according to Reverse-DCF analysis?

At $449.22 per share (Enterprise Value of $55.83B), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 16.3%, compared to ROPER TECHNOLOGIES INC's historical CAGR of 9.7%. Overall market expectations are rated as "Fairly Priced to Fundamentals".

How does ROPER TECHNOLOGIES INC compare to Software & Cloud Services software peers?

ROPER TECHNOLOGIES INC (ROP) earns an institutional Software Quality Score of 74/100 (Grade B+ — Quality Software Operator). Across its Software & Cloud Services peer group (NOW, WDAY, CRM, DDOG, SNOW), the cohort trades at a median EV/TTM Revenue multiple of 10.8× and a median gross margin of 78.2%.

How does Stock-Based Compensation (SBC) impact ROPER TECHNOLOGIES INC (ROP)'s valuation?

ROPER TECHNOLOGIES INC recorded $145.9M in TTM stock-based compensation (2.1% of revenue). When treating SBC as a cash-equivalent compensation expense, ROPER TECHNOLOGIES INC's SBC-adjusted free cash flow yield is 4.5%, scoring 25/25 on our Shareholder Dilution Friction pillar.

ROPER TECHNOLOGIES INC (ROP) DCF Valuation & Fundamental Primer

WACC \ Terminal

1.5%

2.0%

2.5%

3.0%

3.5%

8.5%

$374.00

-17%

$401.27

-11%

$433.08

-4%

$470.68

+5%

$515.80

+15%

9.3%

$329.47

-27%

$350.95

-22%

$375.61

-16%

$404.23

-10%

$437.81

-3%

10.0%

$292.83

-35%

$310.10

-31%

$329.68

-27%

$352.05

-22%

$377.86

-16%

10.8%

$262.17

-42%

$276.30

-38%

$292.13

-35%

$310.00

-31%

$330.35

-26%

11.5%

$236.15

-47%

$247.86

-45%

$260.87

-42%

$275.41

-39%

$291.77

-35%

Statement Line Item

TTM Audited Base

TTM

Revenue

$7.04B

$7.72B

$8.48B

$9.30B

$10.21B

$11.20B

Gross Profit

$4.88B

$5.35B

$5.87B

$6.45B

$7.07B

$7.76B

Operating Income (EBIT)

$2.00B

$2.19B

$2.40B

$2.64B

$2.90B

$3.18B

Stock-Based Compensation (SBC)

$145.9M

$145.7M

$159.9M

$175.5M

$192.6M

$211.3M

$231.9M

Unlevered Free Cash Flow (FCF)

$2.33B

$2.55B

$2.80B

$3.08B

$3.38B

$3.70B

SBC-Adjusted True Cash Flow

$2.18B

$2.39B

$2.63B

$2.88B

$3.16B

$3.47B

Company

Ticker

Market Cap

TTM Revenue

Gross Margin

FCF Margin

Rule of 40

SBC % Rev

EV / Rev

ROPER TECHNOLOGIES INC

ROP

$48.35B

$7.04B

69.3%

33.1%

42.8%

2.1%

7.9×

ServiceNow

NOW

$152.61B

$10.98B

79.2%

31.1%

54.2%

15.9%

13.9×

Workday, Inc.

WDAY

$50.35B

$8.00B

75.0%

27.4%

43.9%

19.0%

6.4×

Salesforce

CRM

$217.10B

$37.90B

77.2%

32.8%

42.8%

8.4%

5.8×

Datadog

DDOG

$46.05B

$2.68B

80.8%

31.1%

57.7%

21.3%

17.4×

Snowflake Inc.

SNOW

$71.79B

$3.63B

66.5%

25.2%

57.7%

40.8%

20.0×

Hubspot

HUBS

$19.89B

$2.63B

85.0%

21.3%

52.7%

19.2%

7.7×

Peer Cohort Median Benchmark (N=6)

78.2%

29.2%

53.5%

19.1%

10.8×

Multiple Scenario

EV / Revenue

Implied Enterprise Value

Implied Equity Value

Implied Share Price

Delta vs Current

Current Multiple

7.9×

$55.83B

$48.35B

$449.22

0.0%

-20% Multiple Compression

6.3×

$44.67B

$37.19B

$345.48

-20.0%

-35% Multiple Compression

5.2×

$36.29B

$28.81B

$267.67

-35.0%

Software Baseline Floor (5.0× EV/Rev)

5.0×

$35.20B

$27.72B

$257.49

-37.0%

ROPER TECHNOLOGIES INC (ROP) 3-Scenario DCF Valuation Range

2D Institutional Valuation Sensitivity Heatmap

Institutional Software Quality Scorecard (74/100 · Grade B+)

Core Investment Strengths & Moats

Key Operational & Dilution Risks

Reverse-DCF Solver: What Growth is Priced Into ROP?

ROPER TECHNOLOGIES INC (ROP) 5-Year Fundamental Forecast

Software & Cloud Services Peer Comparables & Rule of 40 Regression

Rule of 40 vs. EV / Revenue Multiple Regression

EV / Revenue Multiple Compression Stress Test

Frequently Asked Questions: ROPER TECHNOLOGIES INC (ROP) Valuation

What is ROPER TECHNOLOGIES INC (ROP)'s intrinsic DCF valuation and implied share price?

What is ROPER TECHNOLOGIES INC (ROP)'s Rule of 40 score and Free Cash Flow margin?

What revenue growth rate is priced into ROP stock according to Reverse-DCF analysis?

How does ROPER TECHNOLOGIES INC compare to Software & Cloud Services software peers?

How does Stock-Based Compensation (SBC) impact ROPER TECHNOLOGIES INC (ROP)'s valuation?

Related Software & Cloud Services Equity Research Reports

ROPER TECHNOLOGIES INC (ROP) 3-Scenario DCF Valuation Range

2D Institutional Valuation Sensitivity Heatmap

Institutional Software Quality Scorecard (74/100 · Grade B+)

Core Investment Strengths & Moats

Key Operational & Dilution Risks

Reverse-DCF Solver: What Growth is Priced Into ROP?

ROPER TECHNOLOGIES INC (ROP) 5-Year Fundamental Forecast

Software & Cloud Services Peer Comparables & Rule of 40 Regression

Rule of 40 vs. EV / Revenue Multiple Regression

EV / Revenue Multiple Compression Stress Test

Frequently Asked Questions: ROPER TECHNOLOGIES INC (ROP) Valuation

What is ROPER TECHNOLOGIES INC (ROP)'s intrinsic DCF valuation and implied share price?

What is ROPER TECHNOLOGIES INC (ROP)'s Rule of 40 score and Free Cash Flow margin?

What revenue growth rate is priced into ROP stock according to Reverse-DCF analysis?

How does ROPER TECHNOLOGIES INC compare to Software & Cloud Services software peers?

How does Stock-Based Compensation (SBC) impact ROPER TECHNOLOGIES INC (ROP)'s valuation?

Related Software & Cloud Services Equity Research Reports