Ross Stores Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 ($139.32) is trading below our estimate of fair value ($255.26)

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 Ratio22.3x
EarningsUS$2.07b
Market CapUS$46.20b

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 Average23x
BURL Burlington Stores
39.6x17.8%US$17.3b
TJX TJX Companies
28.4x7.3%US$134.8b
ANF Abercrombie & Fitch
13.9x2.9%US$7.3b
GAP Gap
10.1x5.2%US$7.9b
ROST Ross Stores
22.3x7.7%US$46.2b

Price-To-Earnings vs Peers: ROST is good value based on its Price-To-Earnings Ratio (22.3x) compared to the peer average (23x).


Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TKLF Tokyo Lifestyle
2xn/aUS$14.40m
SSOK Sunstock
2.3xn/aUS$771.79k
MASN Maison Luxe
0.09xn/aUS$192.03k
CONN.Q Conn's
n/an/aUS$2.49k
ROST 22.3xIndustry Avg. 16.7xNo. of Companies11PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ROST is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the US Specialty Retail industry average (16.7x).


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 Ratio22.3x
Fair PE Ratio17.8x

Price-To-Earnings vs Fair Ratio: ROST is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the estimated Fair Price-To-Earnings Ratio (17.8x).


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
CurrentUS$139.32
US$167.67
+20.4%
10.0%US$190.00US$123.00n/a21
Nov ’25US$140.06
US$171.05
+22.1%
9.8%US$190.00US$123.00n/a21
Oct ’25US$148.19
US$171.15
+15.5%
9.8%US$190.00US$123.00n/a21
Sep ’25US$150.61
US$173.49
+15.2%
7.5%US$190.00US$123.00n/a21
Aug ’25US$142.98
US$161.49
+13.0%
7.5%US$176.00US$117.00n/a21
Jul ’25US$145.24
US$161.49
+11.2%
7.5%US$176.00US$117.00n/a21
Jun ’25US$139.76
US$161.42
+15.5%
8.2%US$176.00US$111.00n/a21
May ’25US$127.82
US$160.78
+25.8%
7.9%US$173.00US$111.00n/a22
Apr ’25US$145.09
US$160.60
+10.7%
7.8%US$172.00US$111.00n/a22
Mar ’25US$149.63
US$146.39
-2.2%
8.3%US$165.00US$109.00n/a22
Feb ’25US$143.11
US$138.70
-3.1%
12.3%US$160.00US$85.00n/a22
Jan ’25US$138.39
US$135.20
-2.3%
10.8%US$150.00US$85.00n/a22
Dec ’24US$132.14
US$134.21
+1.6%
10.8%US$147.00US$85.00n/a22
Nov ’24US$115.98
US$129.13
+11.3%
10.3%US$142.00US$84.00US$140.0621
Oct ’24US$112.95
US$129.13
+14.3%
10.3%US$142.00US$84.00US$148.1921
Sep ’24US$121.70
US$128.38
+5.5%
10.4%US$142.00US$84.00US$150.6121
Aug ’24US$113.99
US$119.67
+5.0%
10.8%US$135.00US$78.00US$142.9821
Jul ’24US$112.13
US$119.05
+6.2%
11.0%US$135.00US$78.00US$145.2421
Jun ’24US$100.90
US$119.40
+18.3%
11.2%US$135.00US$78.00US$139.7620
May ’24US$105.75
US$120.95
+14.4%
12.0%US$139.00US$77.00US$127.8220
Apr ’24US$106.13
US$121.70
+14.7%
11.5%US$139.00US$77.00US$145.0920
Mar ’24US$110.67
US$123.76
+11.8%
8.0%US$139.00US$105.00US$149.6321
Feb ’24US$118.52
US$121.86
+2.8%
8.8%US$139.00US$103.00US$143.1121
Jan ’24US$116.07
US$119.76
+3.2%
8.7%US$135.00US$97.00US$138.3921
Dec ’23US$117.98
US$118.33
+0.3%
7.9%US$130.00US$97.00US$132.1421
Nov ’23US$94.68
US$97.86
+3.4%
10.5%US$119.00US$80.00US$115.9820

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies