Roper Technologies Inc., FCFE calculation

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net earnings	4,544,700)	1,152,600)	949,700)	1,767,900)	944,400)
Net noncash charges	(3,953,000)	616,300)	378,300)	(326,700)	449,600)
Changes in operating assets and liabilities, net of acquired businesses	14,900)	97,300)	197,100)	20,600)	36,100)
Cash provided by operating activities	606,600)	1,866,200)	1,525,100)	1,461,800)	1,430,100)
Capital expenditures	(40,100)	(32,900)	(31,200)	(52,700)	(49,100)
Capitalized software expenditures	(30,200)	(29,700)	(17,700)	(10,200)	(9,500)
Proceeds from senior notes	—)	—)	3,300,000)	1,200,000)	1,500,000)
Payment of senior notes	(800,000)	(500,000)	(600,000)	—)	(1,300,000)
Borrowings (payments) under revolving line of credit, net	(470,000)	(1,150,000)	1,620,000)	(865,000)	(405,000)
Debt issuance costs	(3,900)	—)	(42,000)	(12,100)	(13,900)
Redemption premium for debt extinguishment	—)	—)	—)	—)	(15,500)
Free cash flow to equity (FCFE)	(737,600)	153,600)	5,754,200)	1,721,800)	1,137,100)

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).

Cash Provided by Operating Activities: The cash provided by operating activities demonstrated a generally increasing trend from 2018 to 2021, starting at 1,430,100 thousand USD in 2018 and reaching a peak of 1,866,200 thousand USD in 2021. However, in 2022, there was a significant decline to 606,600 thousand USD, which represents a sharp reduction compared to the previous year.
Free Cash Flow to Equity (FCFE): The free cash flow to equity showed notable volatility over the analyzed periods. It increased substantially from 1,137,100 thousand USD in 2018 to 1,721,800 thousand USD in 2019, followed by a significant spike to 5,754,200 thousand USD in 2020. This was succeeded by a sharp decrease to 153,600 thousand USD in 2021, and ultimately moved into a negative position of -737,600 thousand USD in 2022, indicating potential cash flow challenges or increased equity-related expenditures in the most recent period.

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Roper Technologies Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	106,822,117
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	(737,600)
FCFE per share	-6.90
Current share price (P)	494.05
Valuation Ratio
P/FCFE	—
Benchmarks
P/FCFE, Competitors¹
Apple Inc.	30.16
Arista Networks Inc.	42.10
Cisco Systems Inc.	9.13
Dell Technologies Inc.	161.72
Super Micro Computer Inc.	—
P/FCFE, Sector
Technology Hardware & Equipment	29.47
P/FCFE, Industry
Information Technology	59.45

Based on: 10-K (reporting date: 2022-12-31).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Roper Technologies Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
No. shares of common stock outstanding¹	106,243,275	105,602,835	104,939,597	106,109,664	103,607,782
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	(737,600)	153,600)	5,754,200)	1,721,800)	1,137,100)
FCFE per share³	-6.94	1.45	54.83	16.23	10.98
Share price^1, 4	428.99	439.21	383.92	351.70	319.35
Valuation Ratio
P/FCFE⁵	—	301.96	7.00	21.67	29.10
Benchmarks
P/FCFE, Competitors⁶
Apple Inc.	22.26	23.27	24.40	21.64	—
Arista Networks Inc.	96.72	42.05	32.99	—	—
Cisco Systems Inc.	17.18	21.02	38.82	14.85	—
Dell Technologies Inc.	33.54	14.15	5.64	—	—
Super Micro Computer Inc.	139.27	13.81	—	7.83	—
P/FCFE, Sector
Technology Hardware & Equipment	22.22	22.84	24.15	—	—
P/FCFE, Industry
Information Technology	26.89	27.39	23.42	—	—

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).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= -737,600,000 ÷ 106,243,275 = -6.94

⁴ Closing price as at the filing date of Roper Technologies Inc. Annual Report.

⁵ 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 428.99 ÷ -6.94 = —

⁶ Click competitor name to see calculations.

Share Price: The share price of the company shows a consistent upward trend from 2018 to 2021, increasing from $319.35 to a peak of $439.21. However, in 2022, there is a slight decline to $428.99, indicating a minor correction or market adjustment after steady growth over the previous years.
Free Cash Flow to Equity (FCFE) per Share: FCFE per share experiences significant volatility over the five-year period. It increases from $10.98 in 2018 to a substantial peak of $54.83 in 2020, suggesting strong cash generation in that year. However, this is followed by a sharp decline to $1.45 in 2021 and further to negative $6.94 in 2022, highlighting considerable challenges in cash flow generation in the most recent years.
Price to FCFE (P/FCFE) Ratio: The P/FCFE ratio demonstrates notable fluctuations, starting at 29.1 in 2018 and declining to 21.67 in 2019, reflecting increasing FCFE per share relative to the share price. In 2020, the ratio drops sharply to 7, likely driven by the peak in FCFE per share. However, in 2021, the ratio spikes dramatically to 301.96, corresponding to the steep drop in FCFE per share, indicating the share price was relatively high compared to cash flow available to equity holders. Data for 2022 is missing, possibly due to the negative FCFE per share making the ratio undefined or not meaningful.

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Roper Technologies Inc. (NASDAQ:ROP)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical