Ross Stores operates off-price retail apparel and home fashion stores, offering apparel, accessories, footwear, and home fashions. The company was founded in 1957 and is based in Dublin, California.
ROST Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Ross Stores Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Ross Stores Inc ranked in the 38th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for ROST, they are:
The company has produced more trailing twelve month cash flow than 92.33% of its sector Consumer Cyclical.
The business' balance sheet reveals debt to be 9% of the company's capital (with equity being the remaining amount). Approximately just 20.65% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Ross Stores Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -118.53. This coverage rate is greater than that of merely 1.47% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Ross Stores Inc? See PENN, RELX, ATR, LOW, and AZO.
Image source Treasure hunt retailer Ross Stores (ROST) has been a strong performer for many years. The company’s focus on a robust value proposition for consumers has resonated well and driven steady comparable sales growth, driving earnings growth over time. The COVID-19 crisis is obviously derailing some of that, but...
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In this article you are going to find out whether hedge funds think Ross Stores, Inc. (NASDAQ:ROST) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]