Ross Stores Inc (ROST) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Ross Stores Inc stock $118, price $235, that is 49.7% below the price, quality 77 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
Keep an eye on it?Free in your watchlist: 5 stocks without an account, 10 with oneYes, for free
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $67.15 – $254.74 · fair‑value band $88.32 – $148.49 · the $235.23 price screens above the $118.41 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
Follow Ross Stores in your weekly email
Every Wednesday you see whether Ross Stores is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands in the United States. The company offers designer apparel, accessories, footwear, and home-fashioned products for the entire family.
Show moreShow less
It sells its products to middle income households and households with lower to more moderate incomes. Ross Stores, Inc. was incorporated in 1957 and is headquartered in Dublin, California.
Stock analysis
Ross Stores Inc (ROST) currently trades at $235.23, while our model-based Fair Value estimate is $118.41, 50% below the price, so the stock looks overvalued today.
Show more
Valuation
Bull case: the DCF Models group reads highest at a median of $144.80 per share, and 0 of the 26 models we run sit above the $235.23 price.
Bear case: the Asset-Based group reads lowest at $12.90, and 26 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $88.32 (bear) to $148.49 (bull), the price of $235.23 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 77/100 (high quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Ross Stores Inc reported revenue of $22.8B in FY2026 versus $18.9B in FY2022, a compound +4.7%/yr. Reported net income was $2.1B in FY2026, compounding +5.6%/yr from FY2022.
Key figures
Market cap $76.0B Large · P/E ratio 28.4 · P/S ratio 3.10 · EPS (TTM) $8.27 · Dividend yield 0.7% · Net margin 10.9% · Return on equity 42.6% · Return on assets (EBIT) 16.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 70 out of 100 (medium confidence).
What moves the price
The share trades about 8% below its 52-week high and 49% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −8% fair-value upside, at −50%, ROST screens richer than that median.
Fair Value models
Bear$88.32Fair Value $118.41Bull$148.49
Price $235.23 · Downside -49.7%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 9 months old). Earnings retained since then ($5.04 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 2 officers or directors sold shares worth $12.8M and none bought.
SaleJames Grant ConroyCHIEF EXECUTIVE OFFICER, Director49,205 shares at $229.48$11.3MSep 14, 2026
SaleStephen C BrinkleyPRESIDENT, OPERATIONS2× since Mar 24, 2026: 10,578 shares, avg. $223.08$2.4MSep 14, 2026
SaleWilliam W Sheehan IIEVP, CHIEF FINANCIAL OFFICER4,883 shares at $216.95$1.1MMar 26, 2026
SaleKaren SykesPRESIDENT, CMO DD'S DISCOUNTS2× since Mar 10, 2026: 8,062 shares, avg. $213.56$1.7MMar 25, 2026
SaleMichael J. HartshornGROUP PRESIDENT, COO, Director21,874 shares at $214.80$4.7MMar 25, 202610b5-1 plan
SaleKaren FlemingPRES, CMO ROSS DRESS FOR LESS7,000 shares at $212.76$1.5MMar 24, 2026
SalePatricia H MuellerDirector1,881 shares at $213.13$400,898Mar 10, 2026
Plus 14 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.97/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+7.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.8%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.7%
Start year 2021 (pandemic). Over 10 years: +6.7% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.8%
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
’26
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+8.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+7.6%
Dividend (yield on the price)0.7%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.7.6% vs 10.2%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.3% → 12%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+16.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+7.2%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +13.7% a year for the price and +4.8% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: Strong organization capital in sourcing and distribution supports solid returns for the off-price model, while limited innovation signals and sparse human-capital data remain the main constraints.
Main risk: If brands adopt AI for better inventory management, the flow of closeout and excess apparel merchandise could shrink, limiting Ross's opportunistic sourcing and pressuring its margin advantage.
Bull case: Ross could strengthen vendor relationships and diversify sourcing geographies to secure attractive closeouts even if AI trims overall excess inventory while navigating tariffs through negotiations and efficiency gains.
Bear case: If AI sharply cuts brand overstock and tariffs persist or rise, Ross's core sourcing model could face sustained higher costs and thinner merchandise selection, eroding its value proposition and margin edge over time.
Ross Stores delivered double-digit comparable sales growth in its latest quarter, powered by rising customer traffic that has outpaced some off-price rivals. The lean, opportunistic buying model and low-overhead stores continue to support underlying margin gains even after one-time items. Will the traffic surge and sourcing edge sustain stronger results as store expansion accelerates, or will competition and a return to normal demand patterns cap the upside?
Price, fair value, quality and upside side by side.
Free, no sign-up
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Apparel Retail · 101 stocks
Beats the industry median on 6/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score77 · Top 25%
Fair Value upside−49.7% · Bottom 25%
Profitability
Return on equity (12 months)42.6% · Top 25%
Return on assets13.8% · Top 25%
Net margin (12 months)10.9% · Top 25%
Operating margin (12 months)13.6% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)13.3% · Top 25%
Dividend yield (12 months)0.7% · Bottom 25%
Balance sheet
Debt / equity0.17× · Above median
Valuation Multiplesvs Apparel Retail median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Ross Stores Inc (ROST) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $118.41 versus a price of $235.23, about 50% lower (overvalued).
What is the fair value of ROST?
Our model-based fair value for Ross Stores Inc is $118.41 (as of Nov 6, 2026), built from audited fundamentals. The current price: $235.23.
What is the quality score of ROST?
Ross Stores Inc has a Quality Score of 77/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Ross Stores Inc (ROST)?
Our model-based price target is the fair value of $118.41 (as of Nov 6, 2026) from 26 valuation models. Cautious scenario $88.32, optimistic scenario $148.49. It is a calculation from audited fundamentals, not an analyst target.
What is the Ross Stores Inc stock forecast for 2026?
Our models put fair value at $118.41, about 50% lower versus a price of $235.23 (overvalued). Cautious scenario $88.32, optimistic scenario $148.49. The calculation is refreshed regularly with new filings.
What is the revenue of Ross Stores Inc (ROST)?
Ross Stores Inc reported trailing-twelve-month revenue of about $24.5B (latest available figure, as of Nov 6, 2026).
Does Ross Stores Inc pay a dividend?
Ross Stores Inc currently shows a dividend yield of 0.72% relative to its recent price (as of Nov 6, 2026).
What growth is priced into Ross Stores Inc (ROST)?
For today's price to be fair in a discounted-cash-flow model, Ross Stores Inc would have to grow free cash flow by +16.4 % per year for five years (discount rate 8.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +12.7 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of ROST use?
Our models discount Ross Stores Inc at 8.9 %: a base by market capitalisation (large), damped by beta 0.84, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Ross Stores Inc that is +16.4 % per year a year over ten years, using the same discount rate (8.9 %) and the same formula as our fair value.
How much growth has Ross Stores Inc (ROST) delivered so far?
Over the past 5 years revenue at Ross Stores Inc grew +12.7 % a year. The price currently implies +16.4 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Ross Stores Inc (ROST) growing?
The median revenue growth in the sector is +4.6 % a year. That is the yardstick for the growth priced into Ross Stores Inc (+16.4 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Ross Stores Inc (ROST)?
The free-cash-flow yield on the price is 2.91 %: that much free cash flow Ross Stores Inc produces per unit of market value. When it exceeds the discount rate of our models (8.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Ross Stores Inc (ROST)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Ross Stores Inc it is $118.41 per share (as of Nov 6, 2026), against a price of $235.23. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Ross Stores Inc stock overvalued or undervalued in 2026?
As of Nov 6, 2026, ROST trades above its calculated fair value: price $235.23, fair value $118.41, a gap of about −50% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ROST?
No. The price is what the market pays today ($235.23); the fair value is what the company's own numbers justify ($118.41). For Ross Stores Inc the two are $116.82 per share apart. That gap is exactly why we show both numbers side by side.
How much is Ross Stores Inc worth?
The market values Ross Stores Inc at about $76.0B (market capitalisation, as of Nov 6, 2026). Per share that is $235.23; our models calculate a fair value of $118.41 per share.
What do the bullish and bearish scenarios say about ROST?
Our models span a range for Ross Stores Inc: cautious scenario $88.32, base $118.41, optimistic $148.49 per share (as of Nov 6, 2026, price $235.23). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ROST?
Ross Stores Inc trades at a price-to-earnings ratio of 28.4 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $118.41 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, FY2026 ex one-offs: 24.1. Other multiples: PEG 2.5, P/B 12.3, P/S 3.1, EV/EBITDA 19.8.
What is the PEG ratio of ROST?
The PEG ratio of Ross Stores Inc is 2.49 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Ross Stores Inc (ROST)?
Balance-sheet figures for Ross Stores Inc (as of Nov 6, 2026): return on equity 42.6%, debt of 0.17 per unit of equity. They feed the Quality Score of 77/100, which measures business quality independently of the share price.
How far is ROST from its 52-week high?
Ross Stores Inc trades at $235.23, about 8% below its 52-week high of $254.74 and 49% above the low of $158.09 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $118.41 is for.
Which stocks are comparable to Ross Stores Inc?
From the same area (Consumer Cyclical) we also value Industria de Diseño Textil, S.A, The TJX Companies, Inc, Fast Retailing Co, Trent Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Ross Stores Inc stock attractive at the current price?
The data as of Nov 6, 2026: price $235.23, calculated fair value $118.41 (−50%), Quality Score 77/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ROST calculated?
We run Ross Stores Inc through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $118.41, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Ross Stores Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Ross Stores Inc (ROST)?
The closing price on Nov 5, 2026 was $235.23. Our model-based fair value is $118.41, about 50% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Ross Stores Inc right now?
A high-quality business (quality 77/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety. The price sits above even our optimistic bull case ($148.49). The favourable scenario is already priced in.
Where does the earnings growth of Ross Stores Inc (ROST) come from?
Earnings per share at Ross Stores Inc grew +10.5 % a year from 2015 to 2026. Broken into its drivers: revenue per share +9.2 %, EBIT margin −1.6 %, tax rate +2.1 %, residual (interest, one-offs) +0.7 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Ross Stores Inc
How large is the market capitalisation of Ross Stores Inc (ROST)?
The market capitalisation of Ross Stores Inc is $76.0B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Ross Stores Inc (ROST)?
The price-to-sales ratio of Ross Stores Inc is 3.10 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Ross Stores Inc (ROST)?
Earnings per share at Ross Stores Inc are $8.27 (price ÷ EPS = P/E 28.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Ross Stores Inc (ROST)?
The dividend yield of Ross Stores Inc is 0.7% (payout 20.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Ross Stores Inc (ROST)?
The net margin of Ross Stores Inc is 10.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Ross Stores Inc (ROST)?
The return on equity (ROE) of Ross Stores Inc is 42.6% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Ross Stores Inc (ROST)?
On an EBIT basis the return on assets of Ross Stores Inc is 16.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Ross Stores Inc (ROST)?
The operating margin of Ross Stores Inc is 13.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Ross Stores Inc (ROST)?
Revenue at Ross Stores Inc is growing +13.3% versus a year earlier (3y avg +6.8%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Ross Stores Inc (ROST)?
Earnings per share at Ross Stores Inc are growing +70.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Ross Stores Inc (ROST) carry?
The net debt of Ross Stores Inc is $618M (fiscal year 2026, ≈ 0.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch Ross Stores Inc in the live analysis
One click puts Ross Stores Inc on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 27,000+ stock screener.
Broad data
Nov 6, 2026