Roper Technologies (FRA:ROP) GF Value Rank : 7 (As of Apr. 28, 2024)

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What is Roper Technologies GF Value Rank?

Roper Technologies has the GF Value Rank of 7.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Roper Technologies's GF Value Rank

For the Software - Application subindustry, Roper Technologies's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Roper Technologies's GF Value Rank Distribution in the Software Industry

For the Software industry and Technology sector, Roper Technologies's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Roper Technologies's GF Value Rank falls into.

Roper Technologies GF Value Rank Related Terms

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Roper Technologies (FRA:ROP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Roper Technologies Inc (FRA:ROP) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

ROP:USA EG:Mexico R1OP34:Brazil

Address

6901 Professional Parkway East, Suite 200, Sarasota, FL, USA, 34240

Website

https://www.ropertech.com

Roper is a diversified technology company that operates through three segments: application software; network software and systems; and technology enabled products. The firm's culture emphasizes acquiring asset-light, cash-generative businesses. Roper then reinvests this excess cash in businesses that yield incrementally higher rates of return. While the businesses are managed in a decentralized manner, Roper does not passively manage its portfolio. Instead, Roper manages its businesses through the Socratic method and empowers decision-makers through group executive coaching. Roper has now rotated a clear majority of its business from legacy industrial products into technology software in mature, niche markets with large quantities of deferred revenue.