Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Roper Technologies, Inc. (ROP)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$490.53 - $2,873.65$906.10
Multi-Stage$310.96 - $340.33$325.37
Blended Fair Value$615.74
Current Price$498.69
Upside23.47%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS10.92%14.96%2.972.682.422.181.981.771.571.321.120.93
YoY Growth--10.92%10.64%10.96%10.42%11.68%12.70%19.12%17.92%20.70%25.64%
Dividend Yield--0.50%0.48%0.55%0.46%0.49%0.57%0.45%0.47%0.54%0.51%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,570.20
(-) Cash Dividends Paid (M)346.80
(=) Cash Retained (M)1,223.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)314.04196.28117.77
Cash Retained (M)1,223.401,223.401,223.40
(-) Cash Required (M)-314.04-196.28-117.77
(=) Excess Retained (M)909.361,027.131,105.64
(/) Shares Outstanding (M)108.25108.25108.25
(=) Excess Retained per Share8.409.4910.21
LTM Dividend per Share3.203.203.20
(+) Excess Retained per Share8.409.4910.21
(=) Adjusted Dividend11.6012.6913.42
WACC / Discount Rate7.57%7.57%7.57%
Growth Rate5.09%6.09%7.09%
Fair Value$490.53$906.10$2,873.65
Upside / Downside-1.64%81.70%476.24%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,570.201,665.771,767.171,874.731,988.842,109.892,173.19
Payout Ratio22.09%35.67%49.25%62.83%76.42%90.00%92.50%
Projected Dividends (M)346.80594.17870.361,177.981,519.821,898.902,010.20

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.57%7.57%7.57%
Growth Rate5.09%6.09%7.09%
Year 1 PV (M)547.13552.34557.55
Year 2 PV (M)738.02752.13766.38
Year 3 PV (M)919.79946.30973.32
Year 4 PV (M)1,092.771,134.961,178.37
Year 5 PV (M)1,257.261,318.231,381.54
PV of Terminal Value (M)29,106.2730,517.7431,983.46
Equity Value (M)33,661.2535,221.7236,840.61
Shares Outstanding (M)108.25108.25108.25
Fair Value$310.96$325.37$340.33
Upside / Downside-37.64%-34.75%-31.76%

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