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Non-Tech : Roper Industries (ROP) - Boring but profitable. -- Ignore unavailable to you. Want to Upgrade?

To: PuddleGlum who wrote (2)	11/14/1997 6:32:00 AM
From: Steve Stuart	Read Replies (1) \| Respond to of 31

Steve, Thanks for your comments. My valuation is actually very similar. Roper's ROE is currently 21% and rising, so I agree that they should be able to grow their earnings at 20% or better. I'm only willing to pay that P/E on the retained earnings, and I value the dividend as if it were a bond (effective P/E of only 9). But it still works out to a fair value of $30 vs. their current price of $27 or so. This suggests that they are slightly undervalued, but I'm not willing to put money down on those slim margins until I understand the business a little better. I will keep watching for dips, and read some 10-Q's and 10-K's to get a better handle on the various business segments. I also "like" the analytical instrumentation part of the business, but don't really see any synergy that ties together the various markets. What do they supply for semiconductor companies, and how does it fit in? -Steve S.