ROST Relative Valuation
ROST's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ROST is overvalued; if below, it's undervalued.
Historical Valuation
Ross Stores Inc (ROST) is now in the Overvalued zone, suggesting that its current forward PE ratio of 26.21 is considered Overvalued compared with the five-year average of 22.54. The fair price of Ross Stores Inc (ROST) is between 152.43 to 179.62 according to relative valuation methord. Compared to the current price of 189.53 USD , Ross Stores Inc is Overvalued By 5.52%.
Relative Value
Fair Zone
152.43-179.62
Current Price：189.53
5.52%
Overvalued
26.21
PE
1Y
3Y
5Y
18.10
EV/EBITDA
Ross Stores Inc. (ROST) has a current EV/EBITDA of 18.10. The 5-year average EV/EBITDA is 15.27. The thresholds are as follows: Strongly Undervalued below 12.29, Undervalued between 12.29 and 13.78, Fairly Valued between 16.75 and 13.78, Overvalued between 16.75 and 18.24, and Strongly Overvalued above 18.24. The current Forward EV/EBITDA of 18.10 falls within the Overvalued range.
21.54
EV/EBIT
Ross Stores Inc. (ROST) has a current EV/EBIT of 21.54. The 5-year average EV/EBIT is 18.21. The thresholds are as follows: Strongly Undervalued below 14.84, Undervalued between 14.84 and 16.52, Fairly Valued between 19.90 and 16.52, Overvalued between 19.90 and 21.59, and Strongly Overvalued above 21.59. The current Forward EV/EBIT of 21.54 falls within the Overvalued range.
2.54
PS
Ross Stores Inc. (ROST) has a current PS of 2.54. The 5-year average PS is 2.05. The thresholds are as follows: Strongly Undervalued below 1.54, Undervalued between 1.54 and 1.79, Fairly Valued between 2.31 and 1.79, Overvalued between 2.31 and 2.57, and Strongly Overvalued above 2.57. The current Forward PS of 2.54 falls within the Overvalued range.
20.09
P/OCF
Ross Stores Inc. (ROST) has a current P/OCF of 20.09. The 5-year average P/OCF is 18.69. The thresholds are as follows: Strongly Undervalued below 3.88, Undervalued between 3.88 and 11.29, Fairly Valued between 26.09 and 11.29, Overvalued between 26.09 and 33.49, and Strongly Overvalued above 33.49. The current Forward P/OCF of 20.09 falls within the Historic Trend Line -Fairly Valued range.
28.77
P/FCF
Ross Stores Inc. (ROST) has a current P/FCF of 28.77. The 5-year average P/FCF is 24.64. The thresholds are as follows: Strongly Undervalued below 11.14, Undervalued between 11.14 and 17.89, Fairly Valued between 31.39 and 17.89, Overvalued between 31.39 and 38.14, and Strongly Overvalued above 38.14. The current Forward P/FCF of 28.77 falls within the Historic Trend Line -Fairly Valued range.
Ross Stores Inc (ROST) has a current Price-to-Book (P/B) ratio of 10.05. Compared to its 3-year average P/B ratio of 9.03 , the current P/B ratio is approximately 11.31% higher. Relative to its 5-year average P/B ratio of 9.35, the current P/B ratio is about 7.51% higher. Ross Stores Inc (ROST) has a Forward Free Cash Flow (FCF) yield of approximately 3.32%. Compared to its 3-year average FCF yield of 3.77%, the current FCF yield is approximately -11.82% lower. Relative to its 5-year average FCF yield of 3.68% , the current FCF yield is about -9.65% lower.
10.05
P/B
Median3y
9.03
Median5y
9.35
3.32
FCF Yield
Median3y
3.77
Median5y
3.68
Competitors Valuation Multiple
The average P/S ratio for ROST's competitors is 1.94, providing a benchmark for relative valuation. Ross Stores Inc Corp (ROST) exhibits a P/S ratio of 2.54, which is 30.54% above the industry average. Given its robust revenue growth of 10.44%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ROST increased by 23.99% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 24.03 to 28.53.
The secondary factor is the Revenue Growth, contributed 10.44%to the performance.
Overall, the performance of ROST in the past 1 year is driven by P/E Change. Which is more unsustainable.
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Frequently Asked Questions
Is Ross Stores Inc (ROST) currently overvalued or undervalued?
Ross Stores Inc (ROST) is now in the Overvalued zone, suggesting that its current forward PE ratio of 26.21 is considered Overvalued compared with the five-year average of 22.54. The fair price of Ross Stores Inc (ROST) is between 152.43 to 179.62 according to relative valuation methord. Compared to the current price of 189.53 USD , Ross Stores Inc is Overvalued By 5.52% .
What is Ross Stores Inc (ROST) fair value?
ROST's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Ross Stores Inc (ROST) is between 152.43 to 179.62 according to relative valuation methord.
How does ROST's valuation metrics compare to the industry average?
The average P/S ratio for ROST's competitors is 1.94, providing a benchmark for relative valuation. Ross Stores Inc Corp (ROST) exhibits a P/S ratio of 2.54, which is 30.54% above the industry average. Given its robust revenue growth of 10.44%, this premium appears unsustainable.
What is the current P/B ratio for Ross Stores Inc (ROST) as of Jan 06 2026?
As of Jan 06 2026, Ross Stores Inc (ROST) has a P/B ratio of 10.05. This indicates that the market values ROST at 10.05 times its book value.
What is the current FCF Yield for Ross Stores Inc (ROST) as of Jan 06 2026?
As of Jan 06 2026, Ross Stores Inc (ROST) has a FCF Yield of 3.32%. This means that for every dollar of Ross Stores Inc’s market capitalization, the company generates 3.32 cents in free cash flow.
What is the current Forward P/E ratio for Ross Stores Inc (ROST) as of Jan 06 2026?
As of Jan 06 2026, Ross Stores Inc (ROST) has a Forward P/E ratio of 26.21. This means the market is willing to pay $26.21 for every dollar of Ross Stores Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Ross Stores Inc (ROST) as of Jan 06 2026?
As of Jan 06 2026, Ross Stores Inc (ROST) has a Forward P/S ratio of 2.54. This means the market is valuing ROST at $2.54 for every dollar of expected revenue over the next 12 months.