MeritValue

ROPER TECHNOLOGIES INC

ROPdata completeness 88%19 fiscal years on file
The thesis, from the filings

ROPER TECHNOLOGIES INC earns about 4% on invested capital, with a roughly flat share count. The applicable estimate puts fair value near $147.14 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$4.83B1$5.37B2$6.18B3$7.04B3$7.9B3
Net income$1.15B4$4.54B5$1.38B6$1.55B6$1.54B6
Operating cash flow$2.01B7$734.6M8$2.04B9$2.39B9$2.54B9
Capital expenditure—————
Free cash flow (derived)—————
Total debt$15.8B10$13.3B11$12.7B12$15.2B13$18.6B13
Cash & equivalents$351.5M14$792.8M15$214.3M16$188.2M17$297.4M17
Diluted shares106.5M106.8M107.4M108.0M108.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$1,837.48
your share of equity
Profit it earned you last year
$141.99
Free cash flow it threw off
—
Debt you’d be carrying
$1,719.22

10 shares is a claim on $1,837.48 of net worth that earned you $141.99 last year, against $1,719.22 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
4% avg · 5y
FY21 4%FY22 4%FY23 5%FY24 5%FY25 4%

It earned an average 4% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+2% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has risen 17% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
$147.14
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$1.54B
  • growthAssumed0.0%
Graham Number
$242.3
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000882835-24-000008 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0000882835-25-000008 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0000882835-26-000009 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0000882835-24-000008 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000882835-25-000008 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0000882835-26-000009 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000882835-24-000008 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000882835-25-000008 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0000882835-26-000009 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000882835-23-000016 (LongTermDebtNoncurrent)
  11. 10-K · period ending 2022-12-31 · accession 0000882835-24-000008 (LongTermDebtNoncurrent)
  12. 10-K · period ending 2023-12-31 · accession 0000882835-25-000008 (LongTermDebtNoncurrent)
  13. 10-K · period ending 2024-12-31 · accession 0000882835-26-000009 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2021-12-31 · accession 0000882835-23-000016 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2022-12-31 · accession 0000882835-24-000008 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2023-12-31 · accession 0000882835-25-000008 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2024-12-31 · accession 0000882835-26-000009 (CashAndCashEquivalentsAtCarryingValue)