Is Roper Technologies, Inc. overvalued or undervalued?

As of 31 January 2025, Roper Technologies, Inc. has moved from a fair valuation to an expensive one. The company is currently overvalued, with a P/E ratio of 42, significantly higher than the industry average. Key ratios include an EV to EBITDA of 24.26 and a PEG ratio of 22.49, both indicating a premium valuation relative to its earnings growth potential.
In comparison to peers, Roper Technologies' P/E ratio stands at 41.04, while Salesforce, Inc. has a P/E of 36.69, and Adobe, Inc. is at 31.91. This suggests that Roper is priced higher than its competitors without a corresponding justification in growth or profitability. Additionally, Roper's recent stock performance shows a year-to-date return of 8.91%, which, while positive, lags behind the S&P 500's return of 2.44% in the same period, further reinforcing the notion of overvaluation.