Is Fortive Corporation (FTV) Fairly Valued?
Fortive Corporation valuation review using P/E, fair value, revenue growth, EPS growth, net margin, and TGMCharts chart exhibits as of July 10, 2026.
By TGMCharts Research · Data as of · Updated
Fortive Corporation trading at 37.02x trailing earnings sits above its third-party analyst DCF reference of $59.07, indicating that the market multiple requires structural business expansion to sustain its current levels.
The valuation framework tests the balance between market price and underlying fundamentals. With a five-year revenue CAGR of 2.10% and a five-year EPS CAGR of -17.51%, the business shows a divergence between top-line expansion and per-share profitability. The net margin of 11.48% provides a baseline for evaluating whether the trailing earnings multiple is supported by robust cash conversion or remains vulnerable to operational normalization.
- Fortive Corporation closed at $62.31 on July 10, 2026.
- Trailing P/E is 37.02x and price-to-sales is 4.11x.
- Analyst DCF (FMP) is $59.07 with margin of safety at -5.03%.
- Five-year revenue CAGR is 2.10% and five-year EPS CAGR is -17.51%.
- Earnings yield is 2.70% and net margin is 11.48%.
Valuation Setup
The market price, model anchor, growth support, and profitability facts behind the valuation read.
Evaluating the Multiple and the Burden of Fundamental Proof
An objective assessment of Fortive Corporation requires analyzing whether the current market valuation is backed by sufficient operational momentum. Closing at $62.31 on July 10, 2026, the stock commands a trailing earnings multiple of 37.02x. This premium multiple must be weighed against an independent analyst-DCF reference value of $59.07, which establishes a negative margin of safety at -5.03%.
To determine if this pricing is sustainable, analysts must look beyond a single metric. This research note evaluates the connection between the price-to-sales ratio, earnings yield, historical growth rates, and profit margins. When these indicators align, they form a solid foundation for the market's valuation; when they diverge, it signals that the stock may be priced ahead of its fundamental performance.
Market Multiples and the Price to Sales Relationship
Examining the price tag the market places on each unit of sales and earnings reveals the premium embedded in the stock. The company currently carries a price-to-sales ratio of 4.11x, which corresponds to an earnings yield of 2.70%. Plotting these historical valuation multiples alongside the share price highlights how much of the current valuation is driven by multiple expansion rather than organic growth.
FTV P/E ratio Chart
The trailing earnings multiple is the main valuation exhibit because it connects the market price to reported earnings.
Latest P/E ratio: 37.02x as of July 10, 2026.
A P/E ratio of 37.02x has to be judged against the company's five-year EPS CAGR of -17.51%. If the multiple is high while EPS support is ordinary, the valuation thesis becomes more dependent on investor confidence than on fresh earnings power.
FTV price-to-sales Chart
Price-to-sales gives a second valuation lens when margins and earnings can move around the cycle.
Latest price-to-sales ratio: 4.11x.
Price-to-sales at 4.11x is most useful beside net margin of 11.48%. A richer sales multiple is easier to defend when margin quality is durable rather than temporarily elevated.
Dissecting the Third Party DCF Reference and Safety Margin
The independent analyst-DCF model serves as an external benchmark for assessing the current market price. With the fair value calculated at $59.07, the market price sits above this valuation anchor, resulting in a margin of safety of -5.03%. This calculation represents a third-party estimate rather than a proprietary model, and investors should consult the dedicated valuation tools to model alternative operational scenarios.
The valuation at a glance
Each input on its own line: what the stock costs against earnings and sales, the model's fair value and how far price sits from it, and the growth and margins behind the business.
FTV earnings yield Chart
Earnings yield reframes valuation from an owner's-yield perspective rather than a multiple perspective.
Latest earnings yield: 2.70%.
The earnings yield of 2.70% is the counterweight to the P/E ratio. If the yield is thin relative to the quality and growth profile, the valuation case needs more help from future compounding.
Contrasting Five Year Revenue and Earnings Trajectories
Long-term growth metrics reveal a clear divergence between top-line expansion and bottom-line efficiency. Over the past five years, revenue grew at a CAGR of 2.10%, showing steady but modest business expansion. In contrast, the five-year EPS CAGR fell to -17.51%, indicating that the trailing earnings multiple is not supported by a corresponding expansion in per-share profitability.
FTV revenue
Revenue history tests whether the valuation is being supported by real business expansion.
Five-year revenue CAGR: 2.10%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Revenue growth is the business-expansion evidence behind the valuation read. A five-year revenue CAGR of 2.10% helps show how much of the valuation story is coming from company growth instead of only multiple expansion.
FTV EPS
EPS history checks whether reported earnings are keeping pace with the market multiple.
Five-year EPS CAGR: -17.51%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
A five-year EPS CAGR of -17.51% is the clearest support figure for a P/E-based conclusion. If EPS growth slows while the multiple remains elevated, the article should become more cautious after refresh.
Evaluating Profitability Quality Against the Sales Multiple
Operating efficiency determines how effectively top-line revenue is converted into shareholder value. The company maintains a net margin of 11.48%, which must be evaluated alongside the price-to-sales ratio of 4.11x. A high sales multiple is easier to justify when profit margins are expanding, but any contraction in profitability would expose the stock to multiple compression.
FTV net margin
Net margin shows whether the company has enough profitability quality to support its valuation.
Net margin (TTM): 11.48%. The bars below are annual fiscal years.
Net margin of 11.48% is a quality signal, not a valuation verdict by itself. It matters because a premium multiple is more defensible when margins are structurally strong and less defensible when margins are peaking.
Weighing the Bull and Bear Cases for the Current Pricing
The optimistic outlook relies on the company's steady five-year revenue CAGR of 2.10% and its net margin of 11.48% to sustain current valuation levels. Conversely, the cautious outlook highlights the negative five-year EPS CAGR of -17.51% and the negative margin of safety of -5.03% relative to the analyst-DCF reference, suggesting the market may be overestimating the company's near-term earnings power.
Bull and bear case
Valuation support
- Five-year revenue CAGR of 2.10% and five-year EPS CAGR of -17.51% support the business case.
- Net margin of 11.48% is the quality check behind the multiple.
Valuation pressure
- A P/E ratio of 37.02x can become demanding if EPS growth slows.
- The analyst-DCF (FMP) margin of safety at -5.03% should change the valuation read if it deteriorates after refresh.
Key Operational Metrics That Would Alter the Valuation Read
This fundamental outlook would change if the gap between the market price and the analyst-DCF reference of $59.07 narrows, or if the underlying growth trends shift. A reversal in the five-year EPS CAGR or a contraction in the net margin would require an immediate reassessment of the trailing multiple. This analysis is updated daily to ensure all calculations reflect the latest reported financial data.
Synthesis of Financial Evidence and Valuation Outlook
A balanced view of Fortive Corporation indicates that the current valuation relies on a demanding trailing multiple that is not fully supported by historical earnings growth. For the current market price to remain sustainable, the company must improve its bottom-line growth to match its top-line expansion. This analysis is based on verified financial filings and is intended for research purposes rather than personalized investment advice.
FAQ
Is FTV fairly valued?
Fortive Corporation trades at 37.02x trailing earnings with an analyst-DCF (FMP) margin of safety of -5.03%. The cleanest read comes from comparing that valuation to five-year revenue CAGR of 2.10% and five-year EPS CAGR of -17.51%.
What valuation metric matters most for FTV?
This article anchors on P/E, fair value, margin of safety, price-to-sales, earnings yield, revenue growth, and EPS growth. No single metric is treated as a recommendation.
How often should this FTV valuation view refresh?
We refresh this note after each daily market close, so the price, fair value, and every figure stay current. Numbers here are as of July 10, 2026.
What would change our mind
- A material move away from the analyst-DCF (FMP) reference of $59.07.
- A break in five-year EPS support, currently -17.51%.
- Margin quality drifting away from the latest net margin of 11.48%.
The bottom line
Fortive Corporation valuation research note from TGMCharts Research, grounded in precomputed fundamentals, chart exhibits, and a frozen claim ledger.
Read next: FTV fundamentalsContinue with Fortive Corporation's full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-04-30 · period 2026-04-03 · SEC EDGAR source
- “Comparable 2025 Period Total revenue growth (GAAP) 7.7% Excluding impact of: Acquisitions and divestitures (a) -% Currency exchange rates (2.4)% Core revenue growth (Non-GAAP) 5.3% (a) Amount rounded to zero.”
- “Additionally, there was a $59 million decrease in net earnings from discontinued operations.”
- “We face intense competition and if we are unable to compete effectively, we may experience decreased demand and decreased market share.”
- “Core revenue should be considered in addition to, and not as a replacement for or superior to, sales, and may not be comparable to similarly titled measures reported by other companies.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.