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 16th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 82%. The most interesting components of our discounted cash flow analysis for Ross Stores Inc ended up being:
Ross Stores Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 24.36% of tickers in our DCF set.
ROST's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 24.36% 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 18.93% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ROST, try NWSA, SKX, WYND, BBGI, and MTN.
DUBLIN, Calif.--(BUSINESS WIRE)--Ross Stores, Inc. (NASDAQ: ROST) (the “Company”) today announced that it has commenced tender offers to purchase for cash the debt securities issued by the Company listed in the table below (collectively, the “Securities” and each a “series”). Up to $800,000,000 (the “Aggregate Tender Cap”) in Aggregate Amount Payable (exclusive of Accrued Interest) for the Outstanding Securities of Ross Stores, Inc. Listed Below Title of Security CUSIP Number/ ISIN Number Princ
Burlington Stores' (BURL) second quarter results looked ugly, maybe more so than most analysts and investors had been expecting. However, a word of encouragement regarding the third quarter, one that had been lacking in the current off-price retail earnings season, was probably enough to send shares higher on Thursday, August...
D.M. Martins Research on Seeking Alpha | August 27, 2020
Ross Stores' (ROST) second-quarter results were heavily impacted by COVID-19. The company had all of its stores closed from March 20th through May 14th. As a result, comparable same-store sales were down 12% from the day of reopening to the close of the quarter, but better than analyst expectations of...
DUBLIN, Calif.--(BUSINESS WIRE)--Ross Stores, Inc. (NASDAQ: ROST) today reported its 2020 second quarter and first half financial results. Both sales and earnings for these periods reflect the COVID-19 related closures of all Ross Dress for Less® and dd’s DISCOUNTS® locations that began on March 20th and continued through a portion of the second quarter. The Company began a phased process of reopening its stores on May 14th, with the vast majority of its retail locations open and operating by t