ROP
Roper Technologies
Recurring SaaS
★ Quality 33/100Price today
$344.08
what the market pays
Worth
$529.87
calculated cycle value
Price is 35% below its value
charlieapp.co
Unusually large discount. A gap this wide usually means the market is pricing in a risk (AI disruption, for example) that the model does not penalise. A contrarian opportunity: high upside, but high risk — not an obvious one.
Price vs Intrinsic Value
The line is the price month by month; the green band marks when it's undervalued (−20% off value). When the price drops in there, the discount is real, not opinion.
Where does the value come from?
Software and subscriptions
$613.08
per share
How it's calculated
Roper Technologies — high assistant confidence (2026-06-07). Review note.
Net cash in the bank
cash minus financial debt, per share
Total calculated value
business + cash
How many times the cash flow
Recurring SaaS · vs 26 peers
You pay 18.5x times this business's cash flow; its sector median is 21.9x.
44% below what Charlie thinks it's worth (26.6x) — that gap is your safety margin.
Why Undervalued?
Its free cash flow is $23.04/share × 26.6x multiplier minus $83.21 in negative net cash = $529.87 in intrinsic value. Today's price of $344.08 is 54% below that value — there's a real safety margin to enter.
The price is 35% below the calculated value. There's a real safety margin.
The model asks for a discount to absorb estimate errors. That cushion is here.
If the business disappoints a little, the price should hold near $423.90.
At what price would buying make sense?
Entry zones
🟢 Undervalued
≤$423.90
-20% off Value
🟡 Discounted
≤$503.38
-5% off Value
🟢 Today
$344.08
+54% Valor
Undervalued
Today's price offers a real discount to the calculated value. For the long run, this is the kind of entry that builds wealth.
“Price is what you pay. Value is what you get.”
— Warren Buffett
Model updated · July 2026
The business
Roper collects tiny monopolies that nobody else wants to touch.
Roper buys niche vertical software and market verticals where it dominates a small but essential industry. It charges for subscriptions and recurring maintenance — it billed $7.9B in 2025 with a 69% gross margin and $2.5B of free cash flow. It doesn't manufacture anything heavy; it sells software and data that its clients can't get away from.
The moat is fragmentation: dozens of tiny monopolies in markets nobody else wants to go after because they're too small. High switching costs — a hospital or a law firm doesn't migrate its critical software to save pocket change. It converts nearly a third of its revenue into free cash flow, which funds the next acquisition without diluting.
Revenue history
From $5.4B to $7.9B in 4 years. The business grows steadily.
Where each $100 of sales goes
Revenue $7.9B · FY2025
Of every $100 in sales, $81 goes to costs and operations; $19 is left as net profit (19% margin).
Catalysts and risks
$2.5B of annual FCF reinvested in software acquisitions at disciplined multiples.
High single-digit organic growth in its application software segments.
FCF margin near 32% that expands as the mix becomes more SaaS.
$9.3B of debt against $0.3B of cash — the model depends on continuing to buy, and that requires cheap credit.
Overpaying for acquisitions when software multiples rise pressures future returns.
Growth is bought, not invented; if the pipeline of targets dries up, the machine slows down.
Charlie's note
“A well-oiled capital machine that buys software tollbooths and lets them run. You pay 26 times for the buyer's discipline; the day they lose that discipline, the charm evaporates.”
Analysis · June 2026
So when would be a good price for Roper Technologies?
Today it trades below what we calculate. If you want us to tell you when that changes —or when the value itself moves because the company reported— we will email you.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.