Ross Stores, Inc. (ROST) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-50.0%

$114.44

vs $229.11 price

Levered DCF

$108.13

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

7.69

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	28.33×	23.67×	25.09×	26.86×	19.95×	468.38×	24.23×	21.42×
P/B	9.75×	8.98×	9.65×	9.47×	8.46×	12.04×	11.97×	10.3×
P/S	2.65×	2.34×	2.31×	2.17×	1.82×	3.16×	2.51×	2.27×
EV / EBITDA	18×	15.43×	16.15×	16.95×	13.01×	72.55×	16.77×	13.74×
Gross margin	27.9%	27.8%	27.4%	25.4%	27.5%	21.5%	28.1%	28.4%
Operating margin	11.9%	12.2%	11.3%	10.6%	12.3%	3.4%	13.4%	13.6%
Net margin	9.4%	9.9%	9.2%	8.1%	9.1%	0.7%	10.4%	10.6%
Current ratio	1.58×	1.62×	1.77×	1.9×	1.77×	1.69×	1.27×	1.69×
Debt / equity	0.84×	1.03×	1.18×	1.33×	1.38×	1.74×	1.04×	0.09×
Interest coverage	82.3×	40.79×	31.15×	24.71×	31.04×	4.88×	220.35×	124.38×
Dividend yield	0.9%	1.0%	1.0%	1.1%	1.2%	0.3%	0.9%	1.0%
Payout ratio	24.6%	23.4%	24.3%	28.5%	23.5%	118.8%	22.3%	21.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	34.7%	37.9%	38.5%	35.3%	42.4%	2.6%	49.4%	48.0%
Return on invested capital	17.1%	16.8%	15.8%	14.5%	17.7%	3.7%	22.8%	38.9%
Return on assets	13.8%	14.0%	13.1%	11.3%	12.6%	0.7%	17.8%	26.1%
Free cash flow yield	3.7%	3.3%	3.7%	2.6%	3.4%	4.6%	4.0%	4.9%
Earnings yield	3.6%	4.2%	4.0%	3.7%	5.0%	0.2%	4.1%	4.7%
Enterprise value	$60.9B	$50.4B	$47.9B	$41.7B	$35.1B	$40.5B	$42.4B	$32.9B
Net debt / EBITDA	0.18×	0.29×	0.3×	0.47×	0.26×	1.64×	0.85×	-0.46×
Cash conversion cycle (days)	8	10	8	3	-1	-24	19	22