Is Fortive Corporation overvalued?

In our latest published analysis dated 2026-10-11, FTV screens modestly overvalued. The price recorded at analysis is 57,3 USD versus our fair value of 53,0 USD; the high endpoint is presented separately as potential value of 60,2 USD. That implies roughly 7.5% downside to fair value at that date.

What is FTV's fair value?

Our latest published report, analyzed 2026-10-11, gives FTV a fair value of 53,0 USD and a potential value of 60,2 USD. The conclusion is triangulated across multiple valuation models and weighted by reliability for Fortive Corporation's archetype; it is a dated research output, not a live price.

Should I buy FTV now?

Our latest published rating for FTV, analyzed 2026-10-11, is Hold. Fortive Corporation screens modestly overvalued at the analysis-date price of 57,3 USD versus fair value of 53,0 USD; potential value is 60,2 USD. This is research for educational purposes, not personalized investment advice.

What are the biggest risks for FTV?

The dedicated bear-case section in our report analyzed 2026-10-11 documents Fortive Corporation's material risks, evidence, thresholds, and thesis-invalidation conditions. Scenario-specific explanations remain in that section so the report does not repeat or decontextualize them elsewhere.

What is FTV's rating?

Our latest published rating for FTV, analyzed 2026-10-11, is Hold, with a published moat assessment of 7.5/10 (Narrow). It reflects our fair value of 53,0 USD, the potential value of 60,2 USD, and the price recorded at analysis (57,3 USD).

What archetype is FTV?

In the latest published report analyzed 2026-10-11, Fortive Corporation is classified as a mature compounder stock. Archetype determines how every downstream parameter — discount rate, terminal growth, deceleration curve, terminal multiple, scenario probability weights, scorecard weights, and which valuation models are prioritized — is calibrated for FTV.

FTV stock analysis | StockMarketAgent.AI

StockMarketAgent researchAnalizzato 2026-10-11

Fortive Corporation

FTV

Mantenere

Potenziale ribasso del 7,5% fino al fair value

Report-date price

57,26 USD

Recorded 2026-10-09

Valore equo

52,99 USD

Valore potenziale

60,16 USD

Estremo superiore della valutazione

Vantaggio competitivo

Narrow7.5 / 10

Fallback in ingleseIT

Mostrando la fonte in inglese mentre traduciamo

Questo report non è ancora stato tradotto. Aggiorna tra qualche minuto una volta che la coda di traduzione avrà recuperato.

§1 SintesiEN

Risposta in 30 secondiHold

Prezzo rispetto al valore

Prezzo: $57.26
Fair value: $52.99
Valore potenziale: $60.16
Al: 2026-10-09

Perché può funzionare

Accelerated customer migration to recurring cloud software platforms in Intelligent Operating Solutions and sustained Fortive Business System operational improvements expanding consolidated operating margins toward 21.0%, unlocking intrinsic value toward Potential value of USD 60.16.

Cosa cambierebbe la nostra valutazione

A 5% or greater contraction in Intelligent Operating Solutions organic revenue caused by industrial manufacturing capex curtailments and equipment replacement pauses.

We rate Fortive Corporation Hold. The stock traded at USD 57.26 on October 9, 2026, representing an 8.06% premium to our Fair value of USD 52.99, leaving an unfavorable risk-reward balance until price aligns with intrinsic value.⁴

A Hold rating indicates that existing investors should maintain their current position size while new investors wait for a more compelling entry price. Fortive operates high-quality businesses with strong free cash flow, but the equity does not offer an adequate margin of safety at its valuation level on the report date.

§2 Scenario ribassistaEN

Under a simultaneous macroeconomic stress test where global manufacturing capex contracts by 5% and interest rates remain elevated, Fortive faces compressed operating margins. Historical precedent demonstrates vulnerability during industrial downturns: consolidated EBIT margins dropped to 9.73% in FY2019 and 11.64% in FY2020. With current liabilities of USD 2,246.6 million against cash of USD 375.5 million as of FY2025, cash generation would be diverted toward debt service (total debt USD 3,206.0 million) rather than accretive share buybacks. If the exit multiple derates to 14.3x in line with Broadridge and cost of capital expands by 200 bps, intrinsic value falls to our lower bound of USD 47.69.

Bear scenario

Bear

Probability

20%

Return

-16.7%

Path target

$47.69

Prolonged capital spending contraction in manufacturing and industrial automation
Operating leverage reverses as hardware shipments decline
Exit valuation multiple compresses toward broader instrumentation peers

The downside scenario evaluates the impact of an industrial manufacturing capex contraction and deferred equipment replacement cycles across core customer segments. Contraction in discretionary testing tool demand and slower software migrations compress operating margins, while valuation multiples compress toward lower-multiple workflow peers. This risk pathway would be confirmed by consecutive quarters of negative organic revenue growth in Intelligent Operating Solutions.

Come questa tesi può fallire

Industrial Automation and Capex Contraction in IOS

Intelligent Operating Solutions accounts for USD 2,856.3 million (68.7%) of revenue and USD 738.3 million of operating profit. A 5% contraction in IOS demand caused by automotive and industrial manufacturing capex curtailments would impair operating leverage and reduce consolidated EPS by 15-20%.⁶

FV impact

-1.7%

Segnali di allerta precoce da monitorare

I cinque sviluppi che indebolirebbero la nostra tesi d'investimento.

IOS Segment Organic Revenue Growth

Signals cyclical industrial curtailment in Fluke hardware and capex deferral across core manufacturing clients.

Attuale:Mid-single digit growth modeled (FY2025 revenue USD 2,856.3 million)

Avviso se-5.0% YoY or below for two consecutive quarters

§3 Moat competitivoEN

Narrow

Fortive Corporation possesses a narrow economic moat underpinned by high customer switching costs across specialized industrial instrumentation and mission-critical enterprise software, complemented by intangible brand assets and stringent regulatory clearances in healthcare sterilization. These structural barriers insulate Fortive from direct price competition and sustain returns on invested capital above its 9.42% cost of equity.

In Intelligent Operating Solutions, which generated USD 2,856.3 million (68.7%) of FY2025 revenue, Fluke's pervasive installed base of testing and sensing tools forms the operational standard for facility maintenance technicians. Embedding connected sensors and software applications directly into enterprise maintenance operations creates steep switching hurdles, as displacing Fortive requires retraining workforces and reconfiguring facility systems.

In Advanced Healthcare Solutions, Fortive's sterilization franchise benefits from deep regulatory integration. Sterilization systems and proprietary chemical consumable indicators require rigorous healthcare compliance validation, deterring generic substitution in hospital operating rooms and central processing units.

Profitto economico

Fortive generated operating income of USD 720.2 million in FY2025 on invested capital of USD 9,659.4 million. Returns comfortably exceed the moderate cost of equity of 9.42% and WACC of 8.76%, supporting value creation across our 10-year stage II competitive fade horizon.^2,5

7.5/ 10

Narrow

Sources of advantage

Switching CostsHigh customer switching costs stem from deep integration of Fluke connected instrumentation, calibration protocols, and specialized maintenance management software into daily facility operations and safety compliance.Wide
Intangible Assets and Regulatory ClearancesFluke's recognized brand equity in electrical test tools combined with healthcare compliance clearances and validated hospital sterilization chemistries create durable barriers against uncertified competitors.Moderate

Minacce note al moat
Minaccia	Gravità	Tempistica	Mitigazione
Peer Software Expansion and Pricing Competition	medium	12 to 36 months	Continuous R&D reinvestment (USD 259.2 million in FY2025) and Fortive Business System lean operational execution sustaining gross margins above 63%.

§5 Sensibilità

Tasso di sconto

Crescita terminale

	2.0%	2.3%	2.5%	2.8%	3.0%
8.4%	$56.69	$57.58	$58.55	$59.60	$60.75
8.9%	$54.02	$54.77	$55.57	$56.44	$57.38
9.4%	$51.68	$52.31	$52.99	$53.71	$54.49
9.9%	$49.60	$50.14	$50.71	$51.33	$51.98
10.4%	$47.74	$48.20	$48.70	$49.22	$49.78

Righe: tasso di sconto (Ke per gli utili; WACC per i flussi di cassa). Colonne: crescita terminale.

Valore equo

Variazione di durata (anni)

	-5	-2	0	+2	+5
Valore equo	51,96 USD	52,59 USD	52,99 USD	53,36 USD	53,89 USD

Durata del vantaggio competitivo: 10 anni nella base evidenziata. Le altre ipotesi restano invariate.

Sensitivity reference

The highlighted cell is Fair value when every assumption sits at its base level ($52.99). Each row and column shows what Fair value becomes when one assumption moves.

Scogliera FCF

A free-cash-flow drop test is not available in this run; use the discount-rate and terminal-growth grid as the primary valuation pressure test.

§7 Albero decisionale degli utiliEN

Superato

Upgrade the rating; Consider expanding allocation as operational acceleration verifies software transition milestones and pushes intrinsic value above $57.26.

Trigger: Consolidated revenue and diluted earnings per share exceed consensus expectations, driven by accelerated software subscription growth and segment operating margin expansion in Intelligent Operating Solutions.

An earnings beat driven by accelerating recurring software attach demonstrates strengthening competitive moats and enhanced operating leverage, justifying an upward revision in intrinsic valuation toward $60.16.

In linea

Maintain Hold; Keep existing allocation unchanged without committing new capital, awaiting a price retracement toward Fair value before adding shares.

Trigger: Operating results meet consensus expectations with mid-single digit top-line expansion and steady gross margins across both operating divisions.

Meeting expectations confirms that the business is compounding in line with the base forecast, but does not provide sufficient catalyst to overcome the premium of $57.26 (as of 2026-10-09) over $52.99.

Mancato

Downgrade the rating; Re-examine thesis assumptions, lower position exposure, and tighten downside risk limits if customer deferrals extend into subsequent quarters.

Trigger: Consolidated revenue contracts year-over-year with operating margin contraction in Intelligent Operating Solutions caused by delayed factory testing tool orders.

An earnings miss driven by cyclical industrial capex contraction invalidates intermediate margin expansion assumptions and confirms that discretionary hardware exposure outweighs recurring software stability.

Qualità degli utili

Fortive demonstrates robust earnings quality characterized by operating cash flows that substantially exceed reported net income. Cash generation is anchored by non-discretionary software subscriptions, equipment calibration services, and hospital sterilization consumables. The business model maintains minimal capital expenditure requirements, low inventory obsolescence risk, and steady working capital management, confirming that reported earnings reflect genuine underlying cash compounding rather than accounting accruals.

Andamento delle stime

Consensus estimates for FY2026 and FY2027 revenue and diluted earnings per share remained flat following the second-quarter earnings release, reflecting steady operational execution in line with management guidance without material upward or downward revisions across the analyst cohort.

Metriche da monitorare prima della pubblicazione

Metrica:
Intelligent Operating Solutions Organic Growth
AttualeTracking in line with consensus expectations for mid-single digit growth following the recent quarterly financial filing.
Perché è importante
IOS generates the majority of revenue and earnings; sustained organic growth verifies customer demand for connected test instrumentation and field maintenance software, directly driving consolidated operating income.
Metrica:
Consolidated Gross Margin Trajectory

§8 Storia finanziaria

Conto economico — ultimi sei periodi
Period	2021-12-31	2022-12-31	2023-12-31	2024-12-31	2025-12-31	Trend
Revenue	$5.25B	$5.83B	$3.91B	$4.08B	$4.16B	-5.7%
Gross profit	$3.01B	$3.36B	$2.48B	$2.62B	$2.64B	-3.2%
Operating income	$812.8M	$987.4M	$574.0M	$716.3M	$720.2M	-3.0%
Net income	$608.4M	$755.2M	$865.8M	$832.9M	$579.2M	-1.2%
EPS (diluted)	$1.23	$1.58	$2.43	$2.36	$1.73	+8.9%
EBITDA	$1.18B	$1.44B	$1.13B	$1.67B	$1.20B	+0.5%
R&D	$354.8M	$401.5M	$237.0M	$251.3M	$259.2M	-7.5%
SG&A	$1.84B	$1.96B	$1.67B	$1.65B	$1.66B	-2.5%

Previsione annuale accettata
Metrica	2026	2027	2028	2029	2030
Revenue	$4.37B

Flusso di cassa

Fortive's cash flow generation remains exemplary. In FY2025, operating cash flow reached USD 1,083.2 million, representing a 1.87x conversion ratio against reported net income of USD 579.2 million. Capital expenditures were limited to USD 105.1 million, resulting in free cash flow of USD 978.1 million. Historical free cash flow has demonstrated steady durability, recording USD 1,207.4 million in FY2022. Depreciation of USD 437.6 million in FY2025 comfortably exceeds annual maintenance capex, ensuring sustained owner earnings generation.^5,7

Allocazione del capitale

ROIC

Stable return on invested capital above cost of capital confirms that Fortive's software transitions and asset-light operations generate genuine economic profit, justifying a 10-year stage II competitive fade horizon in valuation modeling.

Operating returns on capital consistently exceed the moderate cost of equity of 9.42% and cost of capital WACC of 8.76%, reflecting disciplined Fortive Business System capital stewardship.

High Cash Flow Conversion Outpaces Net Income

FY2025 operating cash flow of USD 1,083.2 million delivered 1.87x conversion of net income (USD 579.2 million), generating USD 978.1 million in after USD 105.1 million in .

Ricavi più recenti4,2 Mld USDCAGR dei ricavi −2,8%

Margine operativo17,3%10 periodi fiscali

Flusso di cassa libero più recente978,1 Mln USDFY2025

Debito netto2,8 Mld USDFY2025

Dettaglio del conto economicoCome la scala aziendale si traduce in utile dichiarato.

StockMarketAgent.AI

Dati della storia finanziaria
Ricavi	4.159.100.000 USD
Costo del venduto	1.518.000.000 USD
Utile lordo	2.641.100.000 USD
Costi operativi	1.920.900.000 USD
Reddito operativo	720.200.000 USD
Voci non operative e imposte	-141.000.000 USD
Utile netto	579.200.000 USD

Panoramica dello stato patrimonialeCome sono detenute e finanziate le attività dichiarate nel periodo selezionato.

StockMarketAgent.AI

Dati di dettaglio dello stato patrimoniale
Attività totali	11.737.700.000 USD
Disponibilità liquide	375.500.000 USD
Attività correnti	1.605.700.000 USD
Passività totali	5.276.600.000 USD
Passività correnti	2.246.600.000 USD
Patrimonio netto	6.461.100.000 USD

Ponte dei flussi di cassaCome il flusso di cassa operativo è diventato flusso di cassa libero nel FY2025.

StockMarketAgent.AI

Riconciliazione del flusso operativo

Utile netto579,2 Mln USDAmmortamenti e svalutazioni+437,6 Mln USDCompensi basati su azioni+116,8 Mln USDAltre rettifiche operative−50,4 Mln USDFlusso di cassa operativo1,1 Mld USD

Riconciliazione della liquidità iniziale e finale

Liquidità iniziale813,3 Mln USDFlusso di cassa operativo+1,1 Mld USDFlusso da investimenti−135,4 Mln USDFlusso da finanziamenti−1,4 Mld USDEffetto dei tassi di cambio+1 Mln USDLiquidità finale375,5 Mln USD

1,1 Mld USD − 105,1 Mln USDFlusso di cassa libero 978,1 Mln USD

Dati del ponte dei flussi di cassa
Utile netto	579.200.000 USD
Afflusso operativo	1.133.600.000 USD
Ammortamenti e svalutazioni	437.600.000 USD
Compensi basati su azioni	116.800.000 USD
Flusso di cassa operativo	1.083.200.000 USD
Deflusso operativo	50.400.000 USD
Liquidità disponibile	1.897.500.000 USD
Liquidità iniziale	813.300.000 USD
Effetto dei tassi di cambio	1.000.000 USD
Deflusso da investimenti	135.400.000 USD
Capex	105.100.000 USD
Altre attività di investimento	30.300.000 USD
Deflusso da finanziamenti	1.386.600.000 USD
Liquidità finale	375.500.000 USD
Flusso da investimenti	-135.400.000 USD
Flusso da finanziamenti	-1.386.600.000 USD

Ricavi per segmento operativoQuota dei ricavi totali per 2025-12-31.

Ricavi per segmento operativoQuota

Intelligent Operating Solutions2,9 Mld USD68,7%+2,3% a/a

Advanced Healthcare Solutions1,3 Mld USD31,3%+1,2% a/a

Fonte: SEC EDGAR · Depositato 2026-02-25 · SEC EDGAR

Dati sulla composizione dei ricavi: Ricavi per segmento operativo
Ricavi per segmento operativo	Ricavi	Quota	a/a
Intelligent Operating Solutions	2,9 Mld USD	68,7%	2,3%
Advanced Healthcare Solutions	1,3 Mld USD	31,3%	1,2%

Ricavi per area geograficaQuota dei ricavi totali per 2025-12-31.

Ricavi per area geograficaQuota

North America2,5 Mld USD59,9%+3,1% a/a

Asia Pacific730,1 Mln USD17,6%−0,4% a/a

EMEA725,8 Mln USD17,5%+0,7% a/a

Latin America212,1 Mln USD5,1%+1,1% a/a

Fonte: SEC EDGAR · Depositato 2026-02-25 · SEC EDGAR

Dati sulla composizione dei ricavi: Ricavi per area geografica
Ricavi per area geografica	Ricavi	Quota	a/a
North America	2,5 Mld USD	59,9%	3,1%
Asia Pacific	730,1 Mln USD	17,6%	-0,4%
EMEA	725,8 Mln USD	17,5%	0,7%
Latin America	212,1 Mln USD	5,1%	1,1%

Ricavi e utiliCome la scala aziendale si traduce in utile dichiarato.

Liquidità e debitoLiquidità disponibile rispetto all’indebitamento totale.

Generazione di cassaFlusso di cassa operativo rispetto al flusso di cassa libero.

RedditivitàEvoluzione dei margini lordo, operativo e netto.

Dati finanziari puntuali utilizzati nell’analisi del 2026-10-11.

Dati della storia finanziaria
Periodo	Ricavi	EBITDA	Utile netto	Flusso di cassa operativo	Flusso di cassa libero	Capex	Ammortamenti e svalutazioni	Compensi basati su azioni	Riacquisti di azioni	Dividendi pagati	Emissione netta di debito	Flusso da investimenti	Flusso da finanziamenti	Liquidità iniziale	Liquidità finale	Liquidità e investimenti	Debito totale	Margine operativo	ROIC	WACC	Differenziale ROIC−WACC
2016-12-31	5,4 Mld USD	1,4 Mld USD	872,3 Mln USD	1,1 Mld USD	1 Mld USD	110,1 Mln USD	160,9 Mln USD	40,7 Mln USD	—	48,4 Mln USD	—	-310,8 Mln USD	3,8 Mln USD	—	803,2 Mln USD	803,2 Mln USD	3,4 Mld USD	19,7%	—	5,8%	—
2017-12-31	5,8 Mld USD	1,3 Mld USD	1 Mld USD	1,2 Mld USD	1,1 Mld USD	111,1 Mln USD	158,3 Mln USD	44,2 Mln USD	—	97,2 Mln USD	—	-1,7 Mld USD	599,7 Mln USD	803,2 Mln USD	962,1 Mln USD	962,1 Mln USD	4,1 Mld USD	19,9%	—	5,9%	—
2018-12-31	3,8 Mld USD	1,4 Mld USD	2,9 Mld USD	1,3 Mld USD	1,3 Mld USD	69,9 Mln USD	174,2 Mln USD	40,6 Mln USD	—	96,6 Mln USD	—	-2 Mld USD	879,1 Mln USD	962,1 Mln USD	1,2 Mld USD	1,2 Mld USD	3,4 Mld USD	17,0%	—	6,4%	—
2019-12-31	4,6 Mld USD	820,8 Mln USD	738,9 Mln USD	1,3 Mld USD	1,2 Mld USD	74,5 Mln USD	341,5 Mln USD	52,5 Mln USD	—	93,8 Mln USD	—	-4,1 Mld USD	2,8 Mld USD	1,2 Mld USD	1,2 Mld USD	1,2 Mld USD	6,3 Mld USD	9,7%	—	5,9%	—
2020-12-31	4,6 Mld USD	2 Mld USD	1,6 Mld USD	1,4 Mld USD	1,4 Mld USD	75,7 Mln USD	384 Mln USD	62,6 Mln USD	0 USD	94,4 Mln USD	—	-148,4 Mln USD	-696,1 Mln USD	1,2 Mld USD	1,8 Mld USD	2,9 Mld USD	4,2 Mld USD	11,6%	—	4,6%	—
2021-12-31	5,3 Mld USD	1,2 Mld USD	608,4 Mln USD	961,1 Mln USD	911,1 Mln USD	50 Mln USD	395,5 Mln USD	77,4 Mln USD	0 USD	97,7 Mln USD	—	-2,6 Mld USD	652 Mln USD	1,8 Mld USD	819,3 Mln USD	819,3 Mln USD	4 Mld USD	15,5%	—	5,2%	—
2022-12-31	5,8 Mld USD	1,4 Mld USD	755,2 Mln USD	1,3 Mld USD	1,2 Mld USD	95,8 Mln USD	465,6 Mln USD	93,8 Mln USD	442,9 Mln USD	99,5 Mln USD	-723,9 Mln USD	-102,5 Mln USD	-1,3 Mld USD	819,3 Mln USD	709,2 Mln USD	709,2 Mln USD	3,3 Mld USD	16,9%	—	7,6%	—
2023-12-31	3,9 Mld USD	1,1 Mld USD	865,8 Mln USD	1,4 Mld USD	1,3 Mld USD	78,6 Mln USD	426,2 Mln USD	94,5 Mln USD	272,9 Mln USD	102 Mln USD	389,2 Mln USD	-195,4 Mln USD	32,3 Mln USD	709,2 Mln USD	1,9 Mld USD	1,9 Mld USD	3,6 Mld USD	14,7%	—	7,7%	—
2024-12-31	4,1 Mld USD	1,7 Mld USD	832,9 Mln USD	1,5 Mld USD	1,4 Mld USD	86,1 Mln USD	430,9 Mln USD	90,1 Mln USD	889,6 Mln USD	111,2 Mln USD	137 Mln USD	-1,8 Mld USD	-792,7 Mln USD	1,9 Mld USD	813,3 Mln USD	813,3 Mln USD	3,7 Mld USD	17,6%	—	8,2%	—
2025-12-31	4,2 Mld USD	1,2 Mld USD	579,2 Mln USD	1,1 Mld USD	978,1 Mln USD	105,1 Mln USD	437,6 Mln USD	116,8 Mln USD	1,6 Mld USD	92,2 Mln USD	-714,8 Mln USD	-135,4 Mln USD	-1,4 Mld USD	813,3 Mln USD	375,5 Mln USD	375,5 Mln USD	3,2 Mld USD	17,3%	—	8,0%	—

§9 Confronto della valutazione tra pari

Fortive CorporationFTV

Prezzo / valore equo

Valore equo52,99 USDReport-date price57,26 USD

Data di valutazione11 ott 2026

Vantaggio competitivoNarrow

Scorecard d’investimento62 / 100

Teledyne Technologies IncorporatedTDY

Prezzo / valore equo

Valore equo460,57 USDReport-date price621,02 USD

Data di valutazione05 ott 2026

Vantaggio competitivoNarrow

Scorecard d’investimento64 / 100

Keysight Technologies Inc.KEYS

Prezzo / valore equo

Valore equo215,39 USDReport-date price386,43 USD

Data di valutazione02 ott 2026

Vantaggio competitivoWide

Scorecard d’investimento68 / 100

Fortive CorporationFTV

Prezzo / valore equo

Valore equo52,99 USDReport-date price57,26 USD

Data di valutazione11 ott 2026

Vantaggio competitivoNarrow

Scorecard d’investimento62 / 100

Multipli dei pari e redditività
Ticker	Nome	Cap. mercato	P/E	P/S	EV/EBITDA	ROE

Fortive Corporation (FTV) trades at 17.3x forward earnings against a peer median of 18.6x. Its EV/EBITDA of 16.4x compares with a peer median of 15.4x. The comparison uses 4 peers: Teledyne Technologies Incorporated, Keysight Technologies Inc., Broadridge Financial Solutions Inc. and GoDaddy Inc., as of 2026-10-11.

§10 Settore e cicloEN

Fase del ciclo

Expansion

Industry capital benchmarks indicate an ongoing expansionary phase, with industry capex-to-depreciation standing at 1.41 and industry capex-to-revenue at 5.7%. Fortive operates at a substantially more asset-light intensity, with FY2025 capex of USD 105.1 million on revenue of USD 4,159.1 million, generating a 2.53% capex-to-revenue ratio.⁵

Ciclo rialzista

An industrial upcycle driven by accelerated factory automation, semiconductor manufacturing expansions, and stringent workplace safety mandates spurs robust demand for precision test tools, connected monitoring sensors, and hospital sterilization equipment.

Ciclo ribassista

A manufacturing slowdown marked by industrial capex deferrals, reduced plant utilization, and hospital capital budgeting constraints dampens instrument replacement cycles and delays enterprise software deployments.

Trend secolari
Trend	Impatto	Nota
Industrial Asset Digitization and IoT Monitoring	positive	Enterprise industrial clients increasingly connect handheld test instruments and vibration sensors to cloud maintenance platforms to prevent catastrophic downtime.
Healthcare Sterilization Compliance Standards	positive	Tightening global healthcare regulatory protocols enforce non-discretionary utilization of validated low-temperature sterilization chemistries and biological monitoring consumables.
Manufacturing Automation and Electrification	positive

Posizionamento

Fortive positions itself as an asset-light, high-gross-margin instrumentation and software provider. By maintaining low capex requirements (2.53% of revenue in FY2025) relative to the 5.7% industry average, Fortive captures premium gross margins (63.50%) and protects cash flow generation across shifting demand phases.⁵

§11 Gestione della posizioneEN

Dimensionamento

2-3%

With a Hold rating and the share price of USD 57.26 on October 9, 2026 trading at an 8.06% premium to our Fair value of USD 52.99, an underweight-to-neutral position size of 2-3% is warranted. Fresh capital deployment should be withheld until market prices retrace to or below Fair value.⁴

Rischio

Enforce strict portfolio exposure caps of 3.0% maximum allocation for industrial and test instrumentation compounders. Rebalance capital away from the stock if share price appreciates toward Potential value (USD 60.16) without accompanying organic revenue acceleration, preserving disciplined capital protection.

Tranche di ingresso
Livello	Azione	Perché
USD 52.99	Initial Entry Tranche	House Fair value midpoint, where implied return turns positive and valuation aligns with long-term compounder fundamentals.
	Full Position Tranche	Low end of our valuation range, providing an approximate 10% margin of safety to Fair value.

Tranche di uscita
Livello	Azione
USD 60.16	Trim 30% of position
USD 64.50	Exit remaining position

Checkpoint trimestrali
Metrica	Soglia	Azione
IOS Segment Operating Margin	Below 23.0%	Lower modeled consolidated operating margin trajectory by at least 150 bps.
Consolidated Gross Margin

§14 Raccomandazione finaleEN

Azione

Mantenere

Fortive Corporation is a high-quality compounder with robust free cash flow conversion and defensive positions in mission-critical niches. However, trading at USD 57.26 on October 9, 2026, the shares sit 8.06% above our Fair value of USD 52.99. We recommend holding existing positions while awaiting a more favorable valuation entry point.⁴

While Fortive's software transformation and FBS execution provide long-term earnings durability, cyclical industrial sensitivity in hardware test tools limits intermediate upside. Re-entry should be prioritized if price aligns with intrinsic value.

FTV	Fortive Corporation	$17.5B	17.3x	4.0x	16.4x	7.3%	—
TDY	Teledyne Technologies Incorporated	$28.4B	22.9x	4.5x	18.7x	9.2%	20.2%
KEYS	Keysight Technologies Inc.	$65.2B	27.5x	9.9x	37.7x	20.9%	25.7%
BR	Broadridge Financial Solutions Inc.	$18.7B	14.3x	2.5x	12.1x	40.9%	24.6%
GDDY	GoDaddy Inc.	$13.2B	9.5x	2.6x	12.0x	398.2%	24.7%

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Fortive Corporation

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Panoramica dell’azienda

IOS Segment Organic Revenue Growth

Narrow

Sources of advantage

Lenses that set Fair value

Discounted Earnings

Intelligent Operating Solutions Organic Growth

Consolidated Gross Margin Trajectory

Sources

Consolidated Gross Margin

APAC and EMEA Combined Revenue Growth

Advanced Healthcare Solutions Operating Margin

Return on Invested Capital vs Cost of Capital

Multi-stage Moat Fade

Forward Earnings

Owner Earnings

Checks and reference points

Reverse DCF

Asia Pacific and European Revenue Trends

Operating Cash Flow Conversion

Advanced Healthcare Solutions Procedure Demand