Ross Stores, Inc.

WBAG:ROST Stock Report

Market Cap: €46.5b

Ross Stores Valuation

Is ROST undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ROST when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ROST (€141.78) is trading below our estimate of fair value (€260.49)

Significantly Below Fair Value: ROST is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ROST?

Key metric: As ROST is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ROST. This is calculated by dividing ROST's market cap by their current earnings.
What is ROST's PE Ratio?
PE Ratio22.9x
EarningsUS$2.11b
Market CapUS$48.47b

Price to Earnings Ratio vs Peers

How does ROST's PE Ratio compare to its peers?

The above table shows the PE ratio for ROST vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.8x
HM B H & M Hennes & Mauritz
24.6x16.9%SEK 249.5b
9983 Fast Retailing
40.4x8.4%JP¥15.0t
BURL Burlington Stores
42.1x17.8%US$18.0b
TJX TJX Companies
28.1x7.4%US$137.0b
ROST Ross Stores
22.9x7.6%€48.5b

Price-To-Earnings vs Peers: ROST is good value based on its Price-To-Earnings Ratio (22.9x) compared to the peer average (33.8x).

Price to Earnings Ratio vs Industry

How does ROST's PE Ratio compare vs other companies in the European Specialty Retail Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ROST 22.9xIndustry Avg. 16.3xNo. of Companies13PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ROST is expensive based on its Price-To-Earnings Ratio (22.9x) compared to the European Specialty Retail industry average (16.2x).

Price to Earnings Ratio vs Fair Ratio

What is ROST's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ROST PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ROST's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ROST forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€141.78
€162.07
+14.3%
10.2%€182.46€118.12n/a21
Nov ’25€129.04
€158.17
+22.6%
9.8%€175.69€113.74n/a21
Oct ’25€134.04
€153.28
+14.4%
9.8%€170.16€110.16n/a21
Sep ’25€135.42
€156.98
+15.9%
7.5%€171.91€111.29n/a21
Aug ’25€131.62
€149.51
+13.6%
7.5%€162.94€108.32n/a21
Jul ’25€135.36
€149.51
+10.5%
7.5%€162.94€108.32n/a21
Jun ’25€127.66
€148.78
+16.5%
8.2%€162.22€102.31n/a21
May ’25€121.56
€149.88
+23.3%
7.9%€161.27€103.47n/a22
Apr ’25€136.48
€147.77
+8.3%
7.8%€158.26€102.13n/a22
Mar ’25€137.78
€134.97
-2.0%
8.3%€152.13€100.50n/a22
Feb ’25€130.24
€127.59
-2.0%
12.3%€147.18€78.19n/a22
Jan ’25€124.38
€122.44
-1.6%
10.8%€135.84€76.98n/a22
Dec ’24€120.88
€123.05
+1.8%
10.8%€134.77€77.93n/a22
Nov ’24€109.42
€120.35
+10.0%
10.3%€132.34€78.29€129.0421
Oct ’24€107.46
€120.35
+12.0%
10.3%€132.34€78.29€134.0421
Sep ’24€112.62
€118.37
+5.1%
10.4%€130.92€77.45€135.4221
Aug ’24€104.58
€107.45
+2.7%
10.8%€121.22€70.04€131.6221
Jul ’24€101.82
€109.54
+7.6%
11.0%€124.21€71.77€135.3621
Jun ’24€95.07
€110.52
+16.2%
11.2%€124.96€72.20€127.6620
May ’24€95.00
€110.25
+16.0%
12.0%€126.70€70.19€121.5620
Apr ’24€96.24
€111.59
+15.9%
11.5%€127.45€70.60€136.4820
Mar ’24€102.10
€116.08
+13.7%
8.0%€130.37€98.48€137.7821
Feb ’24€107.78
€112.10
+4.0%
8.8%€127.87€94.75€130.2421
Jan ’24€108.02
€112.79
+4.4%
8.7%€127.14€91.35€124.3821
Dec ’23€112.02
€112.42
+0.4%
7.9%€123.50€92.15€120.8821
Nov ’23€94.80
€98.20
+3.6%
10.5%€119.42€80.28€109.4220

Analyst Forecast: Target price is less than 20% higher than the current share price.

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