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    Fortive (FTV): Gauging Valuation After Q3 Earnings Highlight Margin Gains and New Growth Momentum

    Simply Wall St·11/10/2025 01:19:21
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    Fortive (FTV) grabbed investor attention after its third-quarter earnings, the first since spinning off Ralliance, showed real progress in organic growth and operational streamlining. Management highlighted successful cost cuts as well as momentum in growth areas.

    See our latest analysis for Fortive.

    Fortive’s share price has rebounded recently, up 7.2% over the past month and 9.7% across the last 90 days, as investors reacted to upbeat earnings, strategic share buybacks, and fresh signals of bolt-on M&A activity. Despite this near-term momentum, total shareholder return over the past year remains down 9.2%, highlighting how rebuilding market confidence after a challenging run is still underway.

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    With shares climbing, but long-term returns still lagging and analyst targets remaining above the current price, the question is whether Fortive is undervalued right now or if the market has already priced in its next leg of growth.

    Most Popular Narrative: 8.7% Undervalued

    Fortive's current share price has not caught up to the most popular narrative's fair value estimate, leaving room for upside according to this perspective. The narrative weighs anticipated declines in revenue against improved margins to arrive at its valuation.

    Fortive's increasing mix of recurring revenues, now at 50%, through expansion of software, services, and subscription models, including double-digit ARR growth at key brands like Fluke and SaaS momentum at AHS, is expected to drive improved revenue visibility and margin expansion in future periods. This supports both top-line growth and higher net margins.

    Read the complete narrative.

    Want to know which future targets and margin assumptions lay beneath this high-conviction price target? The narrative spotlights bold shifts in business mix and a commitment to recurring revenue streams. Ready to see how they project a valuation premium based on these evolving fundamentals? Explore the reasoning behind each forecast and discover what’s fueling this underappreciated story.

    Result: Fair Value of $56.13 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, persistent revenue concentration and ongoing global trade volatility still threaten Fortive's growth outlook. These factors serve as important catalysts to watch going forward.

    Find out about the key risks to this Fortive narrative.

    Build Your Own Fortive Narrative

    If you have your own perspective on Fortive's future or want to dive into the numbers yourself, it only takes a few minutes to craft your own view, so why not Do it your way

    A great starting point for your Fortive research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.