Fortive Corp
FTVAbove valueHeld by 4 superinvestors.
SEC 10-K · fundamentals
Business quality
As of 2025-12-31Valuation basis: trailing twelve months to 2026-07-03 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- -33.3%
- Net margin
- 13.9%
- ROE
- 9.0%
- FCF margin
- 23.5%
Valuation · value band
Above fair value
Zero-growth floor
$8
Central IV
$19
Optimistic top
$22
Fortive Corp (FTV): Two methods value the business — a conservative owner-earnings DCF and a growth-credited Greenwald estimate, $8–$22 / sh. Today’s price sits above both (price $58 as of 2026-10-16).
The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.
- Recent earnings are below the multi-year average, so the band uses the lower run-rate.
Revenue growth 0% (history declining, capped at zero) · moat 10 yr · discount 11.6% · Zero-growth downside $8
Price as of 2026-10-16 · yahoo · DGS10 5.1% @ 2026-10-15.
Method & numbers
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
Owner-earnings DCF $17.22 – $21.19 · Greenwald $22.48 – $22.48 (neutral $22.48) · zero-growth base $22.48 · reproduction $6.65
Moat Franchise (moat) · terminal value 33% of present value · owner-earnings yield 4% vs 10Y 5.1%.
Graham earnings-power value (normalized NOPAT)$7.97 – $12.00 / sh
Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.
Years: TTM 2026-07-03, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 119% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back).
Buffett owner-earnings value$18.68 – $22.48 / sh
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9.8–11.8% band (9–11% base + 0.8pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-07-03, 2024, 2023, 2022, 2021
v1 simplifications: Net income is below its multi-year average (cyclical/declining): normalized owner earnings anchored to the latest year — no peak-earnings capitalization (audit #2). Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 119% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 0.8pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 4.6 years of owner earnings, adding 0.8pp of cost-of-equity risk premium.
Reproduction value = tangible net assets $-3.30B + capitalized R&D $666.72M（FY 2026, 2024, 2023, 2022） = $6.65 / sh. Reproduction value = intangible-inclusive net reproduction (tangible net assets + acquired-intangible reset proxy + capitalized R&D), ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise.
Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.
Assumes a narrow moat · competitive-advantage period ≈ 10 years.
Growth value: if the moat holds for 10 yr at ROIIC ≈ -4%, $0.00–$0.00 / sh (neutral $0.00). Conservative, not a forecast.
Window TTM 2026-07-03, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 12% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.
Baseline 9%–11%, net debt ≈ 4.6 years of owner earnings → +0.8pp cost-of-equity premium → effective 9.8%–11.8%.
Owner-earnings DCF: growth g₁ 0% (history declining → capped at 0) · OE FY TTM 2026-07-03, 2024, 2023, 2022, 2021 · Discount band: 10.41%–12.81% (DGS10 +4.5% to a 12% strict end, each +0.81pp for leverage premium, as of 2026-10-15). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp. Two-method midpoint gap 17%.
Valuation basis: trailing twelve months to 2026-07-03 — latest 10-K plus unaudited 10-Q filings.
What the price is betting
Today's price pencils in about 22.0% a year in owner-earnings for the next few years. Revenue actually grew 0.0% a year.
The market wants it well ahead of its own track record.
Even when the value band is low-confidence: use this to see what the price assumes — not as a cheapness confirmation.
SEC 13F · holders
Superinvestors Holding This Security
4 holders · $3.91B combined · this quarter +0 opened / -0 exited
- Value$2.69BWeight (prev→now)1.3% → 1.4% ▲
- Value$1.22BWeight (prev→now)3.5% → 3.5% ▼
- Value$4.9MWeight (prev→now)0.8% → 1.0% ▲
- Value$1.3MWeight (prev→now)0.1% → 0.1% ▲
SEC 13F · notes
Written summary
Written summary
Fortive Corp (FTV) is held by 4 of the superinvestors tracked on Compounder, with a combined $3.91B in reported 13F value. The largest position belongs to Dodge & Cox, where it makes up 1.4% of the portfolio.
Other notable holders by value include Andreas Halvorsen (3.5% of its book), Arnold Van Den Berg (1.0% of its book) and Wallace Weitz (0.1% of its book).
In the quarter ended 2026-06-30, 0 of the tracked filers opened a new position in FTV, 2 added to existing ones, 2 trimmed, and 0 sold out entirely.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
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Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
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