Is Ross Stores Inc (ROST) overvalued?
On Equity Rank's model estimate, ROST trades 29% above its fair value. Ross Stores Inc (ROST) last closed at $231.09; the multi-method model fair value is $179.63.
| Price | Model fair value | Price vs model |
|---|---|---|
| $231.09 | $179.63 | 29% above |
What the answer rests on
- 1 of 11 valuation methods put ROST's value above its price and 10 put it below, so the methods mostly agree.
- To justify today's price, ROST's free cash flow would need to grow about 12.3% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 28.7% a year.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 5% above to 293% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind ROST's fair value · What prices assume · Other companies