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Are Roper Technologies Shares Overvalued?

Today we’re reviewing Roper Technologies shares.

They’ve had a great year so far with shares up 37.1%. But will this trend continue or reverse?

Check out our analysis below…

Business Overview

Since its start in 1976, Roper Technologies has expanded its reach within the technology industry.

The company now employs 14 thousand people and the whole operation is managed Brian Jellison (chief executive officer).

The business is broken down into four segments: Medical & Scientific Imaging, RF Technology, Industrial Technology, and Energy Systems & Controls. Roper Technologies has also expanded its business recently by acquiring Deltek for $2.8 billion.

Roper Technologies brought in $3.8 billion in revenue last year. That’s up over the previous year…

Roper Technologies Shares Annual Revenue

Revenue will keep flowing for now. And investors value the company at $25.6 billion… but is that too high?

What are Roper Technologies Shares Worth?

Shares trade for $251.02 but that doesn’t tell us much. To decide if they’re a good value we should look at the key metrics below…

The stock market is filled with individuals who know the price of everything, but the value of nothing. – Phillip Fisher

Price-to-Earnings: Roper Technologies shares trade at 37.4 times earnings. That’s above the average for its competitors.

Roper Technologies shares look a bit expensive on a relative P/E basis. Let’s take a look at another value metric…

Price-to-Book: Roper Technologies shares trade at 4.1 times their book value. This is good compared to its competitors.

The P/B ratio varies across industries and it’s 4.15 for Roper Technologies peers.

Price-to-Sales: This ratio shows sales compared to share price. And Roper Technologies has a ratio of 6.2.

It’s important to compare a company’s price-to-sales to it’s competitors. This ratio varies for industries. With an industry average of 2.2, Roper Technologies shares look less attractive.

These three metrics are a good place to start… but great company research goes deeper.

To learn more about Roper Technologies shares… check out the company’s website or the most recent SEC annual report.

Brian Kehm

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Published in Stock Research

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