Roper Technologies, Inc. ( NYSE:ROP ) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $384.45 at one point, and dropping to the lows of $344.13. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Roper Technologies's current trading price of $356.73 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Roper Technologies’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is Roper Technologies worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 7.58% above my intrinsic value, which means if you buy Roper Technologies today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $331.59, then there isn’t really any room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that Roper Technologies’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.
What kind of growth will Roper Technologies generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted profit growth of 0.8% expected over the next year, growth doesn’t seem like a key driver for a buy decision for Roper Technologies, at least in the short term.
What this means for you:
Are you a shareholder? ROP’s future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on ROP, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Roper Technologies. You can find everything you need to know about Roper Technologies in the latest infographic research report . If you are no longer interested in Roper Technologies, you can use our free platform to see my list of over 50 other stocks with a high growth potential .
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If you spot an error that warrants correction, please contact the editor at email@example.com . This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.