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 ($140.31) is trading below our estimate of fair value ($244.08)

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?

Other financial metrics that can be useful for relative valuation.

ROST key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.3x
Enterprise Value/EBITDA16.2x
PEG Ratio2.9x

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
38.7x17.8%US$16.3b
TJX TJX Companies
28.4x7.6%US$133.2b
ANF Abercrombie & Fitch
14.2x2.2%US$7.2b
GAP Gap
10.7x5.2%US$8.4b
ROST Ross Stores
22.5x7.7%US$47.2b

Price-To-Earnings vs Peers: ROST is good value based on its Price-To-Earnings Ratio (22.5x) 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?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ROST is expensive based on its Price-To-Earnings Ratio (22.5x) compared to the US Specialty Retail industry average (15.1x).


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 Ratio22.5x
Fair PE Ratio18.1x

Price-To-Earnings vs Fair Ratio: ROST is expensive based on its Price-To-Earnings Ratio (22.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.1x).


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 ROST forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$140.31
US$168.91
+20.4%
10.1%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.


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