Price to Sales (P/S)
since 2005
Calculation
Roper Technologies Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net revenues1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 27, 2023 | 8.48 | = | 428.99 | ÷ | 50.56 | 50.56 | = | 5,371,800 | ÷ | 106,243,275 | |
| Feb 22, 2022 | 8.03 | = | 439.21 | ÷ | 54.71 | 54.71 | = | 5,777,800 | ÷ | 105,602,835 | |
| Feb 22, 2021 | 7.29 | = | 383.92 | ÷ | 52.67 | 52.67 | = | 5,527,100 | ÷ | 104,939,597 | |
| Feb 28, 2020 | 6.95 | = | 351.70 | ÷ | 50.58 | 50.58 | = | 5,366,800 | ÷ | 106,109,664 | |
| Feb 25, 2019 | 6.37 | = | 319.35 | ÷ | 50.10 | 50.10 | = | 5,191,200 | ÷ | 103,607,782 | |
| Feb 23, 2018 | 6.27 | = | 281.14 | ÷ | 44.81 | 44.81 | = | 4,607,471 | ÷ | 102,826,454 | |
| Feb 27, 2017 | 5.65 | = | 210.04 | ÷ | 37.20 | 37.20 | = | 3,789,925 | ÷ | 101,874,232 | |
| Feb 26, 2016 | 4.81 | = | 170.34 | ÷ | 35.45 | 35.45 | = | 3,582,395 | ÷ | 101,064,624 | |
| Feb 20, 2015 | 4.76 | = | 168.30 | ÷ | 35.37 | 35.37 | = | 3,549,494 | ÷ | 100,356,523 | |
| Feb 21, 2014 | 4.15 | = | 134.92 | ÷ | 32.53 | 32.53 | = | 3,238,128 | ÷ | 99,547,874 | |
| Feb 25, 2013 | 4.01 | = | 121.30 | ÷ | 30.27 | 30.27 | = | 2,993,489 | ÷ | 98,891,400 | |
| Feb 24, 2012 | 3.28 | = | 94.58 | ÷ | 28.87 | 28.87 | = | 2,797,089 | ÷ | 96,892,635 | |
| Feb 25, 2011 | 3.32 | = | 83.21 | ÷ | 25.03 | 25.03 | = | 2,386,112 | ÷ | 95,336,634 | |
| Feb 26, 2010 | 2.53 | = | 55.44 | ÷ | 21.88 | 21.88 | = | 2,049,668 | ÷ | 93,684,013 | |
| Mar 2, 2009 | 1.48 | = | 37.99 | ÷ | 25.69 | 25.69 | = | 2,306,371 | ÷ | 89,765,578 | |
| Feb 29, 2008 | 2.40 | = | 56.40 | ÷ | 23.54 | 23.54 | = | 2,102,049 | ÷ | 89,306,840 | |
| Mar 1, 2007 | 2.75 | = | 53.15 | ÷ | 19.35 | 19.35 | = | 1,700,734 | ÷ | 87,911,964 | |
| Mar 16, 2006 | 2.75 | = | 46.40 | ÷ | 16.86 | 16.86 | = | 1,453,731 | ÷ | 86,207,669 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Roper Technologies Inc. Annual Report.
Analysis of the Price-to-Sales (P/S) metric from 2006 to 2023 reveals a significant long-term expansion in market valuation relative to revenue generation. While both share price and sales per share exhibited overall growth, the rate of share price appreciation substantially outpaced the growth of sales per share, resulting in a progressively higher valuation multiple.
- Valuation Trend Analysis
- The P/S ratio remained relatively stable between 2006 and 2008, fluctuating between 2.40 and 2.75. A notable contraction occurred in 2009, with the ratio dropping to its period low of 1.48. Following this decline, a sustained upward trajectory began in 2010, with the ratio increasing from 2.53 to 8.48 by February 2023. This represents a significant rerating of the company's valuation over the fourteen-year period following the 2009 trough.
- Revenue and Price Divergence
- Sales per share grew from 16.86 in 2006 to 50.56 in 2023, an increase of approximately 199%. During the same period, the share price rose from 46.40 to 428.99, an increase of approximately 825%. The disparity between these growth rates is the primary driver behind the expansion of the P/S ratio, indicating that investors have been willing to pay a higher premium for each dollar of sales over time.
- Recent Valuation Dynamics
- From 2017 onwards, the P/S ratio experienced accelerated growth, climbing from 5.65 to a peak of 8.48. Despite a slight decline in sales per share between 2022 and 2023 (from 54.71 to 50.56), the P/S ratio continued to expand from 8.03 to 8.48. This suggests that the valuation is increasingly decoupled from immediate revenue growth and may be influenced by other fundamental improvements or market sentiment.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Roper Technologies Inc., P/S, long-term trends, comparison to competitors
| Roper Technologies Inc. | Apple Inc. | Arista Networks Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Lumentum Holdings Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|---|
| Feb 27, 2023 | 8.48 | 6.28 | 9.89 | 3.62 | 0.40 | 3.62 | 0.70 |
| Feb 22, 2022 | 8.03 | 6.72 | 13.57 | 4.96 | 0.72 | 3.61 | 0.51 |
| Feb 22, 2021 | 7.29 | 6.74 | 10.24 | 3.52 | 0.31 | 3.76 | 0.43 |
| Feb 28, 2020 | 6.95 | 4.25 | 7.09 | 3.96 | 0.47 | 2.65 | 0.32 |
| Feb 25, 2019 | 6.37 | 3.60 | 9.29 | 4.38 | — | 3.46 | 0.33 |
| Feb 23, 2018 | 6.27 | 3.86 | 11.20 | 3.28 | — | 3.44 | 0.40 |
| Feb 27, 2017 | 5.65 | 2.86 | 7.49 | 3.20 | — | 2.34 | 0.47 |
| Feb 26, 2016 | 4.81 | 2.85 | 5.52 | 2.71 | — | 1.20 | 0.65 |
| Feb 20, 2015 | 4.76 | 3.37 | 7.82 | 2.69 | — | — | 0.82 |
| Feb 21, 2014 | 4.15 | 2.76 | — | 2.66 | — | — | 0.48 |
| Feb 25, 2013 | 4.01 | 3.58 | — | 2.19 | — | — | 0.54 |
| Feb 24, 2012 | 3.28 | 3.44 | — | 2.03 | — | — | 0.54 |
| Feb 25, 2011 | 3.32 | 4.33 | — | 3.02 | — | — | 0.51 |
| Feb 26, 2010 | 2.53 | 4.87 | — | 3.70 | — | — | 0.55 |
| Mar 2, 2009 | 1.48 | 2.83 | — | 3.33 | — | — | 0.62 |
| Feb 29, 2008 | 2.40 | 5.99 | — | 5.59 | — | — | 0.61 |
| Mar 1, 2007 | 2.75 | 3.77 | — | 4.87 | — | — | — |
| Mar 16, 2006 | 2.75 | 4.34 | — | 4.60 | — | — | — |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Technology Hardware & Equipment)
Roper Technologies Inc., P/S, long-term trends, comparison to sector (technology hardware & equipment)
| Roper Technologies Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Feb 27, 2023 | 8.48 | 4.94 |
| Feb 22, 2022 | 8.03 | 5.44 |
| Feb 22, 2021 | 7.29 | 4.92 |
| Feb 28, 2020 | 6.95 | 3.35 |
| Feb 25, 2019 | 6.37 | 3.72 |
| Feb 23, 2018 | 6.27 | 3.77 |
| Feb 27, 2017 | 5.65 | 2.92 |
| Feb 26, 2016 | 4.81 | 2.81 |
| Feb 20, 2015 | 4.76 | 3.23 |
| Feb 21, 2014 | 4.15 | 2.73 |
| Feb 25, 2013 | 4.01 | 3.25 |
| Feb 24, 2012 | 3.28 | 3.02 |
| Feb 25, 2011 | 3.32 | 3.81 |
| Feb 26, 2010 | 2.53 | 4.26 |
| Mar 2, 2009 | 1.48 | 3.08 |
| Feb 29, 2008 | 2.40 | 5.72 |
| Mar 1, 2007 | 2.75 | 4.43 |
| Mar 16, 2006 | 2.75 | 4.50 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
Roper Technologies Inc., P/S, long-term trends, comparison to industry (information technology)
| Roper Technologies Inc. | Information Technology | |
|---|---|---|
| Feb 27, 2023 | 8.48 | 6.01 |
| Feb 22, 2022 | 8.03 | 6.98 |
| Feb 22, 2021 | 7.29 | 6.11 |
| Feb 28, 2020 | 6.95 | 4.62 |
| Feb 25, 2019 | 6.37 | 4.31 |
| Feb 23, 2018 | 6.27 | 4.18 |
| Feb 27, 2017 | 5.65 | 3.46 |
| Feb 26, 2016 | 4.81 | 3.03 |
| Feb 20, 2015 | 4.76 | 3.31 |
| Feb 21, 2014 | 4.15 | 2.85 |
| Feb 25, 2013 | 4.01 | 2.88 |
| Feb 24, 2012 | 3.28 | 2.84 |
| Feb 25, 2011 | 3.32 | 3.04 |
| Feb 26, 2010 | 2.53 | 3.11 |
| Mar 2, 2009 | 1.48 | 2.38 |
| Feb 29, 2008 | 2.40 | 5.73 |
| Mar 1, 2007 | 2.75 | 5.21 |
| Mar 16, 2006 | 2.75 | 5.62 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).