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 25.51 is considered Overvalued compared with the five-year average of 22.58. The fair price of Ross Stores Inc (ROST) is between 145.53 to 172.59 according to relative valuation methord. Compared to the current price of 178.00 USD , Ross Stores Inc is Overvalued By 3.13%.
Relative Value
Fair Zone
145.53-172.59
Current Price：178.00
3.13%
Overvalued
25.36
PE
1Y
3Y
5Y
Trailing
Forward
17.84
EV/EBITDA
Ross Stores Inc. (ROST) has a current EV/EBITDA of 17.84. The 5-year average EV/EBITDA is 15.26. The thresholds are as follows: Strongly Undervalued below 12.30, Undervalued between 12.30 and 13.78, Fairly Valued between 16.74 and 13.78, Overvalued between 16.74 and 18.22, and Strongly Overvalued above 18.22. The current Forward EV/EBITDA of 17.84 falls within the Overvalued range.
21.08
EV/EBIT
Ross Stores Inc. (ROST) has a current EV/EBIT of 21.08. The 5-year average EV/EBIT is 18.22. The thresholds are as follows: Strongly Undervalued below 14.82, Undervalued between 14.82 and 16.52, Fairly Valued between 19.91 and 16.52, Overvalued between 19.91 and 21.61, and Strongly Overvalued above 21.61. The current Forward EV/EBIT of 21.08 falls within the Overvalued range.
2.49
PS
Ross Stores Inc. (ROST) has a current PS of 2.49. The 5-year average PS is 2.05. The thresholds are as follows: Strongly Undervalued below 1.53, Undervalued between 1.53 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 2.49 falls within the Overvalued range.
22.20
P/OCF
Ross Stores Inc. (ROST) has a current P/OCF of 22.20. The 5-year average P/OCF is 19.09. The thresholds are as follows: Strongly Undervalued below 3.05, Undervalued between 3.05 and 11.07, Fairly Valued between 27.10 and 11.07, Overvalued between 27.10 and 35.12, and Strongly Overvalued above 35.12. The current Forward P/OCF of 22.20 falls within the Historic Trend Line -Fairly Valued range.
30.78
P/FCF
Ross Stores Inc. (ROST) has a current P/FCF of 30.78. The 5-year average P/FCF is 25.03. The thresholds are as follows: Strongly Undervalued below 9.99, Undervalued between 9.99 and 17.51, Fairly Valued between 32.55 and 17.51, Overvalued between 32.55 and 40.07, and Strongly Overvalued above 40.07. The current Forward P/FCF of 30.78 falls within the Historic Trend Line -Fairly Valued range.
Ross Stores Inc (ROST) has a current Price-to-Book (P/B) ratio of 9.72. Compared to its 3-year average P/B ratio of 9.02 , the current P/B ratio is approximately 7.69% higher. Relative to its 5-year average P/B ratio of 9.42, the current P/B ratio is about 3.23% higher. Ross Stores Inc (ROST) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.67%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.70% , the current FCF yield is about -100.00% lower.
9.67
P/B
Median3y
9.02
Median5y
9.42
3.39
FCF Yield
Median3y
3.67
Median5y
3.70
Competitors Valuation Multiple
The average P/S ratio for ROST's competitors is , providing a benchmark for relative valuation. Ross Stores Inc Corp (ROST) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 10.44%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ROST increased by 17.07% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 24.73 to 27.65.
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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