Ross Stores, Inc.

DB:RSO Stock Report

Market Cap: €46.5b

Ross Stores Valuation

Is RSO 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 RSO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RSO (€145.94) is trading below our estimate of fair value (€274.29)

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

Key Valuation Metric

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

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

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

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RSO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.6x
ZAL Zalando
37x21.9%€7.6b
FIE Fielmann Group
23.8x18.9%€3.4b
HM B H & M Hennes & Mauritz
24.6x16.9%SEK 249.5b
HBM HORNBACH Baumarkt
24.8xn/a€1.8b
RSO Ross Stores
22.9x7.6%€48.5b

Price-To-Earnings vs Peers: RSO is good value based on its Price-To-Earnings Ratio (22.9x) compared to the peer average (27.6x).

Price to Earnings Ratio vs Industry

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

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

Price-To-Earnings vs Industry: RSO 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 RSO'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.

RSO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.9x
Fair PE Ratio16.1x

Price-To-Earnings vs Fair Ratio: RSO is expensive based on its Price-To-Earnings Ratio (22.9x) compared to the estimated Fair Price-To-Earnings Ratio (16.1x).

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 RSO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€145.94
€162.07
+11.1%
10.2%€182.46€118.12n/a21
Nov ’25€128.26
€158.17
+23.3%
9.8%€175.69€113.74n/a21
Oct ’25€134.46
€153.28
+14.0%
9.8%€170.16€110.16n/a21
Sep ’25€136.64
€156.98
+14.9%
7.5%€171.91€111.29n/a21
Aug ’25€132.02
€149.51
+13.2%
7.5%€162.94€108.32n/a21
Jul ’25€134.74
€149.51
+11.0%
7.5%€162.94€108.32n/a21
Jun ’25€129.06
€148.78
+15.3%
8.2%€162.22€102.31n/a21
May ’25€122.02
€149.88
+22.8%
7.9%€161.27€103.47n/a22
Apr ’25€135.74
€147.77
+8.9%
7.8%€158.26€102.13n/a22
Mar ’25€137.60
€134.97
-1.9%
8.3%€152.13€100.50n/a22
Feb ’25€130.04
€127.59
-1.9%
12.3%€147.18€78.19n/a22
Jan ’25€124.24
€122.44
-1.4%
10.8%€135.84€76.98n/a22
Dec ’24€119.24
€123.05
+3.2%
10.8%€134.77€77.93n/a22
Nov ’24€109.48
€120.35
+9.9%
10.3%€132.34€78.29€128.2621
Oct ’24€105.50
€120.35
+14.1%
10.3%€132.34€78.29€134.4621
Sep ’24€111.88
€118.37
+5.8%
10.4%€130.92€77.45€136.6421
Aug ’24€104.00
€107.45
+3.3%
10.8%€121.22€70.04€132.0221
Jul ’24€99.81
€109.54
+9.7%
11.0%€124.21€71.77€134.7421
Jun ’24€96.63
€110.52
+14.4%
11.2%€124.96€72.20€129.0620
May ’24€95.47
€110.25
+15.5%
12.0%€126.70€70.19€122.0220
Apr ’24€96.02
€111.59
+16.2%
11.5%€127.45€70.60€135.7420
Mar ’24€100.68
€116.08
+15.3%
8.0%€130.37€98.48€137.6021
Feb ’24€108.22
€112.10
+3.6%
8.8%€127.87€94.75€130.0421
Jan ’24€108.12
€112.79
+4.3%
8.7%€127.14€91.35€124.2421
Dec ’23€112.16
€112.42
+0.2%
7.9%€123.50€92.15€119.2421
Nov ’23€94.50
€98.20
+3.9%
10.5%€119.42€80.28€109.4820

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

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