10 Best Proptech for October 2025
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Market Overview & Selection Criteria
The current market landscape is defined by sector rotation, persistent macroeconomic uncertainty, and a renewed focus on quality growth at a reasonable price. Our stock selection methodology emphasizes intrinsic value, robust free cash flow, and sustainable growth, leveraging ValueSense’s proprietary ratings and financial analysis. Each stock in this watchlist was chosen for its combination of strong fundamentals, sector leadership, and unique catalysts, with a focus on diversification across industries such as technology, real estate, and consumer services.
Featured Stock Analysis
Garmin Ltd. (GRMN)
| Metric | Value |
|---|---|
| Market Cap | $48.0B |
| Quality Rating | 6.9 |
| Intrinsic Value | $192.5 |
| 1Y Return | 50.0% |
| Revenue | $6,758.2M |
| Free Cash Flow | $1,126.8M |
| Revenue Growth | 19.6% |
| FCF margin | 16.7% |
| Gross margin | 58.9% |
| ROIC | 32.9% |
| Total Debt to Equity | 1.8% |
Investment Thesis
Garmin Ltd. stands out as a leader in navigation technology and wearable devices, with a market cap of $48.0B and a ValueSense quality rating of 6.9. The company’s intrinsic value is estimated at $192.5, suggesting potential upside relative to current market pricing. Garmin’s robust financials are highlighted by a 1-year return of 50.0%, revenue of $6,758.2M, and free cash flow of $1,126.8M. The company’s 19.6% revenue growth and 16.7% FCF margin underscore its operational efficiency and growth trajectory. A gross margin of 58.9% and an impressive ROIC of 32.9% further reinforce Garmin’s profitability and capital allocation discipline.
Key Catalysts
- Expansion in fitness and aviation segments
- Strong brand recognition in consumer electronics
- Continued innovation in GPS and wearable technology
- High free cash flow supporting shareholder returns
Risk Factors
- Exposure to consumer discretionary spending cycles
- Competitive pressures from tech giants in wearables
- Modest total debt to equity 1.8% but sensitive to macroeconomic shifts
Zillow Group, Inc. Class C (Z)
| Metric | Value |
|---|---|
| Market Cap | $17.6B |
| Quality Rating | 6.0 |
| Intrinsic Value | $96.2 |
| 1Y Return | 15.5% |
| Revenue | $2,388.0M |
| Free Cash Flow | $351.0M |
| Revenue Growth | 15.3% |
| FCF margin | 14.7% |
| Gross margin | 75.8% |
| ROIC | (3.7%) |
| Total Debt to Equity | 6.9% |
Investment Thesis
Zillow Group is a dominant player in the U.S. online real estate marketplace, with a $17.6B market cap and a ValueSense quality rating of 6.0. The company’s intrinsic value is pegged at $96.2, and it has delivered a 1-year return of 15.5%. Zillow’s revenue stands at $2,388.0M, with free cash flow of $351.0M and a 15.3% revenue growth rate. Its gross margin of 75.8% is among the highest in the sector, reflecting the scalability of its digital platform. However, a negative ROIC of 3.7% and a higher debt-to-equity ratio 6.9% warrant careful monitoring.
Key Catalysts
- Expansion of Zillow’s “housing super app” ecosystem
- Growth in digital real estate transactions and advertising
- Recovery in U.S. housing activity post-pandemic
Risk Factors
- Volatility in the real estate market and mortgage rates
- High competition from other proptech platforms
- Negative ROIC and elevated leverage
Bentley Systems, Incorporated (BSY)
| Metric | Value |
|---|---|
| Market Cap | $16.0B |
| Quality Rating | 6.8 |
| Intrinsic Value | $36.6 |
| 1Y Return | 1.6% |
| Revenue | $1,419.6M |
| Free Cash Flow | $433.7M |
| Revenue Growth | 10.4% |
| FCF margin | 30.6% |
| Gross margin | 80.6% |
| ROIC | 9.2% |
| Total Debt to Equity | 110.4% |
Investment Thesis
Bentley Systems provides infrastructure engineering software, serving a global client base in construction and utilities. With a $16.0B market cap and a ValueSense quality rating of 6.8, Bentley’s intrinsic value is $36.6. The company’s 1-year return is 1.6%, reflecting a period of consolidation after strong prior growth. Financially, Bentley boasts $1,419.6M in revenue, $433.7M in free cash flow, and a 10.4% revenue growth rate. Its 80.6% gross margin and 30.6% FCF margin highlight a highly profitable, asset-light business model. However, a total debt to equity of 110.4% and a moderate ROIC of 9.2% suggest some balance sheet risk.
Key Catalysts
- Increased infrastructure spending globally
- Adoption of digital twins and cloud-based engineering solutions
- Expansion into emerging markets and public sector contracts
Risk Factors
- High leverage (total debt to equity 110.4%)
- Cyclical exposure to construction and infrastructure budgets
- Slower growth in mature markets
AppFolio, Inc. (APPF)
| Metric | Value |
|---|---|
| Market Cap | $8,210.0M |
| Quality Rating | 7.4 |
| Intrinsic Value | $109.5 |
| 1Y Return | 13.2% |
| Revenue | $862.7M |
| Free Cash Flow | $182.8M |
| Revenue Growth | 19.5% |
| FCF margin | 21.2% |
| Gross margin | 63.3% |
| ROIC | 86.4% |
| Total Debt to Equity | 8.7% |
Investment Thesis
AppFolio is a SaaS provider for property management, with a market cap of $8,210.0M and a ValueSense quality rating of 7.4—the highest among this group. The company’s intrinsic value is $109.5, and it has posted a 1-year return of 13.2%. AppFolio’s revenue is $862.7M, with $182.8M in free cash flow and a robust 19.5% revenue growth rate. Its FCF margin of 21.2% and gross margin of 63.3% reflect strong operational leverage. The standout ROIC of 86.4% signals exceptional capital efficiency, though the total debt to equity ratio of 8.7% is higher than some peers.
Key Catalysts
- Growing demand for digital property management solutions
- Expansion into adjacent real estate technology services
- High customer retention and recurring revenue model
Risk Factors
- Competitive SaaS landscape
- Dependence on real estate market health
- Elevated valuation metrics
Frontdoor, Inc. (FTDR)
| Metric | Value |
|---|---|
| Market Cap | $4,871.3M |
| Quality Rating | 7.8 |
| Intrinsic Value | $61.9 |
| 1Y Return | 28.0% |
| Revenue | $1,965.0M |
| Free Cash Flow | $303.0M |
| Revenue Growth | 8.6% |
| FCF margin | 15.4% |
| Gross margin | 53.9% |
| ROIC | 25.9% |
| Total Debt to Equity | 476.3% |
Investment Thesis
Frontdoor, Inc. operates in the home services and warranty sector, with a $4,871.3M market cap and a ValueSense quality rating of 7.8. Its intrinsic value is $61.9, and it has achieved a 1-year return of 28.0%. Frontdoor’s revenue is $1,965.0M, with $303.0M in free cash flow and an 8.6% revenue growth rate. The company’s FCF margin is 15.4%, gross margin is 53.9%, and ROIC is a healthy 25.9%. However, the total debt to equity ratio is notably high at 476.3%, indicating significant leverage.
Key Catalysts
- Expansion of home warranty and repair services
- Cross-selling opportunities within the home services ecosystem
- Increased demand for home maintenance amid aging housing stock
Risk Factors
- High leverage (debt to equity 476.3%)
- Sensitivity to housing market cycles
- Competition from new entrants and established players
Compass, Inc. (COMP)
| Metric | Value |
|---|---|
| Market Cap | $4,047.8M |
| Quality Rating | 5.6 |
| Intrinsic Value | $69.9 |
| 1Y Return | 21.7% |
| Revenue | $6,290.2M |
| Free Cash Flow | $147.0M |
| Revenue Growth | 21.2% |
| FCF margin | 2.3% |
| Gross margin | 16.6% |
| ROIC | (4.1%) |
| Total Debt to Equity | 125.8% |
Investment Thesis
Compass, Inc. is a technology-driven real estate brokerage with a $4,047.8M market cap and a ValueSense quality rating of 5.6. The company’s intrinsic value is $69.9, and it has delivered a 1-year return of 21.7%. Compass reported $6,290.2M in revenue, $147.0M in free cash flow, and a 21.2% revenue growth rate. However, its FCF margin is a modest 2.3%, and gross margin is 16.6%. The company’s ROIC is negative at 4.1%, and total debt to equity is elevated at 125.8%.
Key Catalysts
- Technology-enabled agent productivity tools
- Expansion into new U.S. markets
- Strong revenue growth in a competitive sector
Risk Factors
- Low profitability and negative ROIC
- High leverage and thin margins
- Intense competition in real estate brokerage
WillScot Holdings Corporation (WSC)
| Metric | Value |
|---|---|
| Market Cap | $4,032.5M |
| Quality Rating | 6.4 |
| Intrinsic Value | $22.8 |
| 1Y Return | -39.0% |
| Revenue | $2,352.6M |
| Free Cash Flow | $429.5M |
| Revenue Growth | (2.3%) |
| FCF margin | 18.3% |
| Gross margin | 52.3% |
| ROIC | 8.2% |
| Total Debt to Equity | 382.8% |
Investment Thesis
WillScot Holdings specializes in modular space and portable storage solutions, with a $4,032.5M market cap and a ValueSense quality rating of 6.4. The company’s intrinsic value is $22.8, but it has experienced a 1-year return of -39.0%, reflecting recent headwinds. WillScot’s revenue is $2,352.6M, with $429.5M in free cash flow and a negative revenue growth rate of 2.3%. The FCF margin is 18.3%, gross margin is 52.3%, and ROIC is 8.2%. The company’s total debt to equity is high at 382.8%.
Key Catalysts
- Infrastructure and construction sector demand
- Expansion into new end markets
- Operational improvements to restore growth
Risk Factors
- Recent negative share price performance
- High leverage and cyclical exposure
- Declining revenue growth
The RealReal, Inc. (REAL)
| Metric | Value |
|---|---|
| Market Cap | $3,002.2M |
| Quality Rating | 4.9 |
| Intrinsic Value | $0.6 |
| 1Y Return | 228.0% |
| Revenue | $637.0M |
| Free Cash Flow | ($23.1M) |
| Revenue Growth | 12.7% |
| FCF margin | (3.6%) |
| Gross margin | 74.6% |
| ROIC | (20.7%) |
| Total Debt to Equity | (169.5%) |
Investment Thesis
The RealReal operates a luxury consignment marketplace, with a $3,002.2M market cap and a ValueSense quality rating of 4.9. The company’s intrinsic value is $0.6, but it has delivered a remarkable 1-year return of 228.0%. The RealReal’s revenue is $637.0M, but free cash flow is negative at $23.1M. Revenue growth is 12.7%, with a strong gross margin of 74.6%. However, the company’s ROIC is deeply negative at 20.7%, and total debt to equity is also negative at 169.5%.
Key Catalysts
- Growth in luxury resale and circular economy trends
- Expansion of online and offline consignment channels
- Brand partnerships and authentication technology
Risk Factors
- Persistent negative free cash flow and ROIC
- High leverage and operational losses
- Volatility in luxury goods demand
EverCommerce Inc. (EVCM)
| Metric | Value |
|---|---|
| Market Cap | $2,036.0M |
| Quality Rating | 6.1 |
| Intrinsic Value | $22.2 |
| 1Y Return | 6.4% |
| Revenue | $641.5M |
| Free Cash Flow | $131.5M |
| Revenue Growth | (7.2%) |
| FCF margin | 20.5% |
| Gross margin | 70.2% |
| ROIC | 2.7% |
| Total Debt to Equity | 72.7% |
Investment Thesis
EverCommerce is a SaaS platform for service-based businesses, with a $2,036.0M market cap and a ValueSense quality rating of 6.1. The company’s intrinsic value is $22.2, and it has achieved a 1-year return of 6.4%. EverCommerce’s revenue is $641.5M, with $131.5M in free cash flow and a negative revenue growth rate of 7.2%. The FCF margin is 20.5%, gross margin is 70.2%, and ROIC is 2.7%. Total debt to equity stands at 72.7%.
Key Catalysts
- Expansion of SaaS adoption in service industries
- Cross-selling opportunities across verticals
- Margin improvement initiatives
Risk Factors
- Negative revenue growth
- Moderate leverage
- Competitive SaaS landscape
Soho House & Co Inc. (SHCO)
| Metric | Value |
|---|---|
| Market Cap | $1,728.0M |
| Quality Rating | 5.2 |
| Intrinsic Value | $9.6 |
| 1Y Return | 64.9% |
| Revenue | $1,248.2M |
| Free Cash Flow | $8,024.0K |
| Revenue Growth | 7.6% |
| FCF margin | 0.6% |
| Gross margin | 8.4% |
| ROIC | 2.1% |
| Total Debt to Equity | (871.0%) |
Investment Thesis
Soho House & Co operates a global network of private members’ clubs, with a $1,728.0M market cap and a ValueSense quality rating of 5.2. The company’s intrinsic value is $9.6, and it has delivered a 1-year return of 64.9%. Soho House’s revenue is $1,248.2M, with free cash flow of $8.0M and a 7.6% revenue growth rate. However, its FCF margin is just 0.6%, gross margin is 8.4%, and ROIC is 2.1%. The company’s total debt to equity is highly negative at 871.0%.
Key Catalysts
- Expansion of club locations and membership base
- Growth in hospitality and lifestyle services
- Brand strength in the luxury hospitality sector
Risk Factors
- Low profitability and high leverage
- Sensitivity to discretionary spending trends
- Execution risk in global expansion
Portfolio Diversification Insights
This stock watchlist offers broad sector diversification across technology (AppFolio, Bentley Systems, EverCommerce), real estate (Zillow, Compass, WillScot), consumer services (Frontdoor, The RealReal, Soho House), and industrials (Garmin). The mix balances high-growth SaaS and proptech names with established consumer and industrial businesses. This approach helps mitigate sector-specific risks and provides exposure to multiple growth drivers, from digital transformation to infrastructure spending and consumer trends.
Market Timing & Entry Strategies
Given the current market volatility, staggered entry strategies such as dollar-cost averaging can help manage risk. Monitoring earnings releases, sector rotation, and macroeconomic indicators is essential for timing entries. Investors may consider initiating positions in stocks with strong free cash flow and quality ratings during market pullbacks, while keeping an eye on catalysts such as product launches, regulatory changes, or industry consolidation.
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
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📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
🔍 Check out these stocks on the Value Sense platform for free!
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FAQ Section
Q1: How were these stocks selected?
Stocks were chosen using ValueSense’s intrinsic value methodology, focusing on financial quality, growth metrics, and sector diversification based on proprietary ratings and in-depth analysis of each company’s fundamentals.
Q2: What’s the best stock from this list?
Each stock offers unique strengths; for example, AppFolio has the highest quality rating, while Garmin and The RealReal have delivered standout returns. The “best” stock depends on individual investment goals and risk tolerance.
Q3: Should I buy all these stocks or diversify?
Diversification is a core principle of portfolio construction. This watchlist is designed to provide sector balance, but investors should consider their own risk profile and investment objectives before allocating capital.
Q4: What are the biggest risks with these picks?
Key risks include sector-specific volatility, high leverage for some companies, negative free cash flow or ROIC in select names, and macroeconomic uncertainty affecting real estate, consumer, and tech sectors.
Q5: When is the best time to invest in these stocks?
Optimal timing depends on market conditions, company-specific catalysts, and broader economic trends. Many investors use dollar-cost averaging or wait for pullbacks to initiate or add to positions.
For more in-depth analysis and real-time updates, visit ValueSense and explore our full suite of research tools and stock ideas.