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Roper TechnologiesROP -0.60%79 Forward Rate of Return (Yacktman) % is 21.57% as of Jun. 2026, which is 74% above its 10-year median of 12.39. GuruFocus rates ROP with a GF Score™ of 79/100 and a GF Value™ of $706.02 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,378 Software companies, Roper Technologies ranks better than 73.15% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Roper Technologies's forward rate of return for was 21.57%.
The historical rank and industry rank for Roper Technologies's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ROP'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 4.06 Med: 12.39 Max: 21.32
Current: 20.59
During the past 13 years, Roper Technologies's highest Forward Rate of Return was 21.32. The lowest was 4.06. And the median was 12.39.
ROP's Forward Rate of Return (Yacktman) % is ranked better than 73.15% of 1378
companies
in the Software industry
Industry Median: 13.075
vs ROP: 20.59
Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Roper Technologies (NAS:ROP) Forward Rate of Return (Yacktman) % Explanation
Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.
Be Aware
In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.
Roper Technologies Forward Rate of Return (Yacktman) % Related Terms
Roper Technologies Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Roper Technologies's Forward Rate of Return (Yacktman) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Roper Technologies Forward Rate of Return (Yacktman) % Chart
ROP vs PAYX, TEAM, WDAY: Forward Rate of Return (Yacktman) % Comparison
For the Software - Application subindustry, Roper Technologies's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % 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 Forward Rate of Return (Yacktman) % vs Software Industry
For the Software industry and Technology sector, Roper Technologies's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Roper Technologies's Forward Rate of Return (Yacktman) % falls into.
Roper Technologies Forward Rate of Return (Yacktman) % Calculation
Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Forward Rate of Return (Yacktman) % of 21.57% mean?
Roper Technologies (ROP) has a Forward Rate of Return (Yacktman) % of 21.57% as of Jun. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Roper Technologies and its competitors. This is 74% above median its historical median of 12.39. Over the past decade, Roper Technologies' Forward Rate of Return (Yacktman) % has ranged from 4.06 to 21.32. According to the industry distribution chart, Roper Technologies ranks #370 out of 1378 companies in the Software industry, placing it in the top 26.9%.
Is Roper Technologies' Forward Rate of Return (Yacktman) % too high?
Roper Technologies' current Forward Rate of Return (Yacktman) % of 21.57% is 74% above median its 10-year median of 12.39. Over the past 10 years, this metric has ranged from a low of 4.06 to a high of 21.32. The Software industry median Forward Rate of Return (Yacktman) % is 13.08. Roper Technologies' value of 21.57% is 65% above this industry median. Based on the distribution chart, Roper Technologies ranks #370 out of 1378 companies in the Software industry, which is above the industry midpoint. Overall, Roper Technologies has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Roper Technologies' Forward Rate of Return (Yacktman) % compare to PAYX and TEAM?
According to the Software industry distribution chart, Roper Technologies ranks #370 out of 1378 companies for Forward Rate of Return (Yacktman) %. This puts Roper Technologies in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 13.08. Roper Technologies' value of 21.57% is 65% above this benchmark. Historically, Roper Technologies' own Forward Rate of Return (Yacktman) % has ranged from 4.06 to 21.32 over the past decade. While the company's 10-year median is 12.39 vs. the industry median of 13.08, Roper Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward Rate of Return (Yacktman) % for a Software company?
The median Forward Rate of Return (Yacktman) % among Software companies is 13.08, based on 1,378 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Roper Technologies's current Forward Rate of Return (Yacktman) % of 21.57% is 65% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Roper Technologies and its competitors. For the Software industry, the median Forward Rate of Return (Yacktman) % is 13.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Roper Technologies's current Forward Rate of Return (Yacktman) % is 21.57%, which is 74% above median its own 10-year median of 12.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Roper Technologies stock overvalued right now?
Based on GuruFocus' analysis, Roper Technologies (ROP) is currently considered Significantly Undervalued. The stock's GF Value™ is $706.02, compared to a current price of $415.79 — trading 41.1% below its estimated fair value. The current Forward Rate of Return (Yacktman) % is 21.57%, which is 74% above median its 10-year median of 12.39 and 65% above the Software industry median of 13.08. Roper Technologies' overall GF Score™ is 79/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For Roper Technologies (ROP), the current Forward Rate of Return (Yacktman) % is 21.57% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Roper Technologies (ROP) Overvalued in 2026?
Based on GuruFocus' analysis, Roper Technologies stock appears to be undervalued.
The current stock price of $415.79 is trading 41.1% below its estimated GF Value™ of $706.02.
GuruFocus considers Roper Technologies to be Significantly Undervalued.
Key valuation signals for ROP:
Forward Rate of Return (Yacktman) %: 21.57% (74% above median its 10-year median of 12.39)
GF Value™: $706.02 vs. price of $415.79 (41.1% below fair value)
Industry Position: 65% above the Software median (#370 of 1378)
No single metric tells the full story. See the ROP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Roper Technologies is a holding company focused on acquiring, managing, and developing niche market-leading technology businesses. The company operates a decentralized business model whereby each portfolio company operates independently from the others. Roper positions itself as a free cash flow compounder, whereby excess free cash flow generated by its portfolio businesses is repatriated to the parent company, which is then utilized to acquire additional businesses. Presently, the company operates 30 distinct businesses with over three-fourths of the revenue coming from software products and over two-thirds of revenue coming from recurring and reoccurring sources.
79GF Score
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