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Ross Stores, Inc. and its subsidiaries ( we , our , or the Company ) operate two brands of off-price retail apparel and home fashion stores Ross Dress for Less ( Ross ) and dd s DISCOUNTS . Ross is the largest off-price apparel and home fashion chain in the United States, with 1,904 locations in 44 states, the District of Columbia, Guam, and Puerto Rico as of January 31, 2026.
$233.46
+$0.74 (+0.32%)
EOD Jul 17, 2026
11.90% operating margin is respectable but not wide. ROIC at 17.80%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 7.7%, steady but not accelerating.
At 33x earnings, the current multiple leaves limited room for execution misses or growth deceleration.
32.6x earnings, 28.5x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$23.78B
▲ +7.7% YoY
Net Income (TTM)
$2.32B
▲ +2.6% YoY
Op. Margin
12.22%
▼ -0.3pp YoY
ROIC
19.70%
▲ +0.2pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$2.63B
▲ +34.9% YoY
Op. Cash Flow (TTM)
$3.45B
▲ +28.4% YoY
Net Debt
$592M
Cash & Equiv.
$4.13B
5Y CAGR: +12.7%
5Y CAGR: +3.7%
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At a P/E of 32.6 and a price-to-free-cash-flow of 28.5, Ross Stores (ROST) trades below a two-stage DCF intrinsic value of about $353.97 per share, so at $233.46 the stock looks undervalued (51.6% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Ross Stores scores 79/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 0.7%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $353.97 per share for ROST, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $265.48. At today's $233.46, that puts the stock about 51.6% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Ross Stores scores 79 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 12.2% operating margin and a 19.7% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, Ross Stores pays a regular dividend of about $1.68 per share per year (typically in quarterly installments), a yield of roughly 0.7% at the current price. That is a payout ratio of about 23.2% of earnings, so the dividend is amply covered by earnings. Ross Stores has grown the dividend at roughly 6.9% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For ROST's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. ROST currently trades below its estimated intrinsic value and scores 79/100 on quality (solid). It also yields about 0.7%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.