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DCF Valuation
Base-case fair value
$265.48
Intrinsic $353.97 · 25% MOS
Base-case summary
Our base-case DCF for Ross Stores, Inc. (ROST) projects 10 years of free cash flow growth at 17.4% for years 1–5 and 8.7% for years 6–10, anchored to 17.4% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $2.6B in trailing free cash flow, this produces an intrinsic value of $353.97 per share. A 25% safety margin gives a fair value of $265.48.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$2.6B
Cash & equivalents
$4.1B
Total debt
$4.7B
Shares outstanding
321M