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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Ross Stores Inc. To summarize, we found that Ross Stores Inc ranked in the 53th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 7.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for ROST, they are:
ROST's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 28.89% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Ross Stores Inc has a reliance on debt greater than only 19.48% of them.
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 HMTV, LOCO, CMLS, FND, and GPC.
I often see investors defining themselves as being either growth or value oriented. I don’t believe these two categories should be mutually exclusive, as both strategies have a place in a well-diversified portfolio. This is especially true, when considering that today’s growth stock can be regarded as being cheap on...
Ross Stores jumped Monday, staying in a buy zone. Unlike many discounters, the off-price chains like Ross weren't considered essential retailers and were shut down, still face a lot of restrictions. Big growth seen next year.