Latest Ratios: P/E Ratio 35.6x · EV/EBITDA 21.4x · ROE 36.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $76.1B | $60.9B | $49.8B | $47.3B | $40.8B | $34.6B | $39.5B | $40.5B | $34.3B | $31.7B | $26.1B |
| Enterprise Value | $76.8B | $61.5B | $50.8B | $48.2B | $42.0B | $35.3B | $40.4B | $42.7B | $33.2B | $30.8B | $25.4B |
| P/E Ratio → | 35.61 | 28.54 | 23.82 | 25.23 | 26.98 | 20.07 | 463.71 | 24.39 | 21.62 | 23.21 | 23.36 |
| P/S Ratio | 3.35 | 2.68 | 2.36 | 2.32 | 2.18 | 1.83 | 3.15 | 2.53 | 2.29 | 2.24 | 2.03 |
| P/B Ratio | 12.29 | 9.85 | 9.05 | 9.72 | 9.51 | 8.52 | 11.99 | 12.06 | 10.39 | 10.38 | 9.50 |
| P/FCF | 34.49 | 27.60 | 30.44 | 27.02 | 39.41 | 29.28 | 21.44 | 25.07 | 20.77 | 24.17 | 20.71 |
| P/OCF | 25.15 | 20.13 | 21.14 | 18.82 | 24.15 | 19.89 | 17.57 | 18.66 | 16.61 | 18.83 | 16.75 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.70 | 2.40 | 2.37 | 2.24 | 1.86 | 3.22 | 2.66 | 2.22 | 2.18 | 1.97 |
| EV / EBITDA | 21.42 | 17.17 | 16.75 | 17.68 | 17.59 | 13.10 | 50.86 | 17.08 | 14.02 | 13.03 | 12.06 |
| EV / EBIT | 28.35 | 22.73 | 18.01 | 18.94 | 20.29 | 15.12 | 207.75 | 19.62 | 16.07 | 14.94 | 14.06 |
| EV / FCF | — | 27.88 | 31.03 | 27.52 | 40.53 | 29.87 | 21.94 | 26.40 | 20.11 | 23.49 | 20.14 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 27.9% | 27.9% | 27.8% | 27.4% | 25.4% | 27.5% | 21.5% | 28.1% | 28.4% | 29.0% | 28.7% |
| Operating Margin | 11.9% | 11.9% | 12.2% | 11.3% | 10.6% | 12.3% | 3.4% | 13.4% | 13.6% | 14.5% | 14.0% |
| Net Profit Margin | 9.4% | 9.4% | 9.9% | 9.2% | 8.1% | 9.1% | 0.7% | 10.4% | 10.6% | 9.6% | 8.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 36.7% | 36.7% | 40.3% | 40.9% | 36.2% | 46.9% | 2.6% | 49.8% | 50.0% | 47.0% | 42.8% |
| ROA | 14.1% | 14.1% | 14.3% | 13.5% | 11.2% | 13.1% | 0.8% | 21.5% | 26.9% | 24.7% | 22.0% |
| ROIC | 30.6% | 30.6% | 31.8% | 30.9% | 29.3% | 39.0% | 6.6% | 41.8% | 70.2% | 73.4% | 65.3% |
| ROCE | 25.8% | 25.8% | 25.4% | 23.2% | 20.7% | 25.7% | 5.6% | 40.1% | 51.9% | 55.7% | 52.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.84 | 0.84 | 1.03 | 1.18 | 1.33 | 1.38 | 1.74 | 1.04 | 0.09 | 0.13 | 0.14 |
| Debt / EBITDA | 1.45 | 1.45 | 1.87 | 2.11 | 2.39 | 2.09 | 7.22 | 1.40 | 0.13 | 0.17 | 0.19 |
| Net Debt / Equity | — | 0.10 | 0.17 | 0.18 | 0.27 | 0.17 | 0.28 | 0.64 | -0.33 | -0.29 | -0.26 |
| Net Debt / EBITDA | 0.17 | 0.17 | 0.31 | 0.32 | 0.48 | 0.26 | 1.15 | 0.86 | -0.46 | -0.38 | -0.34 |
| Debt / FCF | — | 0.28 | 0.58 | 0.50 | 1.12 | 0.59 | 0.50 | 1.32 | -0.67 | -0.68 | -0.57 |
| Interest Coverage | 82.30 | 82.30 | 44.50 | 34.36 | 25.67 | 31.05 | 2.21 | 223.21 | 126.00 | 109.28 | 92.27 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.58 | 1.58 | 1.62 | 1.77 | 1.90 | 1.77 | 1.69 | 1.27 | 1.69 | 1.64 | 1.61 |
| Quick Ratio | 1.04 | 1.04 | 1.09 | 1.24 | 1.34 | 1.24 | 1.31 | 0.59 | 0.82 | 0.78 | 0.74 |
| Cash Ratio | 0.95 | 0.95 | 1.01 | 1.16 | 1.25 | 1.17 | 1.21 | 0.50 | 0.70 | 0.67 | 0.63 |
| Asset Turnover | — | 1.46 | 1.42 | 1.42 | 1.39 | 1.39 | 0.99 | 1.72 | 2.47 | 2.47 | 2.42 |
| Inventory Turnover | 6.23 | 6.23 | 6.24 | 6.75 | 6.89 | 6.06 | 6.52 | 6.30 | 6.13 | 6.12 | 6.06 |
| Days Sales Outstanding | — | 2.91 | 2.50 | 2.34 | 2.84 | 2.30 | 3.35 | 2.33 | 2.36 | 2.27 | 2.13 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.7% | 0.9% | 1.0% | 1.0% | 1.1% | 1.2% | 0.3% | 0.9% | 1.0% | 0.8% | 0.8% |
| Payout Ratio | 24.6% | 24.6% | 23.4% | 24.3% | 28.5% | 23.5% | 118.8% | 22.3% | 21.2% | 18.2% | 19.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.8% | 3.5% | 4.2% | 4.0% | 3.7% | 5.0% | 0.2% | 4.1% | 4.6% | 4.3% | 4.3% |
| FCF Yield | 2.9% | 3.6% | 3.3% | 3.7% | 2.5% | 3.4% | 4.7% | 4.0% | 4.8% | 4.1% | 4.8% |
| Buyback Yield | 1.5% | 1.9% | 2.3% | 2.1% | 2.4% | 2.0% | 0.5% | 3.3% | 3.3% | 2.9% | 2.8% |
| Total Shareholder Yield | 2.2% | 2.7% | 3.3% | 3.1% | 3.5% | 3.2% | 0.7% | 4.2% | 4.3% | 3.7% | 3.7% |
| Shares Outstanding | — | $323M | $331M | $337M | $345M | $354M | $355M | $361M | $373M | $384M | $395M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ROST stock.
Ross Stores, Inc.'s current P/E ratio is 35.6x. The historical average is 18.8x. This places it at the 100th percentile of its historical range.
Ross Stores, Inc.'s current EV/EBITDA is 21.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.6x.
Ross Stores, Inc.'s return on equity (ROE) is 36.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 36.4%.
Based on historical data, Ross Stores, Inc. is trading at a P/E of 35.6x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Ross Stores, Inc.'s current dividend yield is 0.69% with a payout ratio of 24.6%.
Ross Stores, Inc. has 27.9% gross margin and 11.9% operating margin. Operating margin between 10-20% is typical for established companies.
Ross Stores, Inc.'s Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Geographic concentration in California
Metrics are mathematically derived from official filings.
Premium Valuation Reflects Quality Discount to TJX
Ross trades at a P/E of 34.90 and EV/EBITDA of 20.99, a premium to peers like Burlington (27.90 P/E) but a discount to TJX (27.07 P/E), suggesting the market prices its operational quality below the industry leader.
The valuation premium over Burlington appears justified by Ross's superior profitability and balance sheet strength, as evidenced by its 13.0% ROE versus Burlington's 39.8% ROE, which is heavily leveraged. However, the discount to TJX's P/E of 27.07, despite Ross's higher growth trajectory, indicates the market may be applying a 'quality discount' due to perceived lower ceilings for international or digital expansion. The PEG ratio of 0.37 suggests the current valuation is attractive relative to its earnings growth rate, but this assumes the recent margin expansion is sustainable.
Margin Expansion Drives Exceptional Earning Power
Gross margin surged to 33.8% in Q2 2026, a significant expansion from 27.6% a year prior, driving net margin to 13.6% and demonstrating the powerful earnings leverage inherent in the off-price model.
The recent gross margin expansion to 33.8% is well above the company's historical average and peer benchmarks, suggesting a favorable shift in merchandise cost and pricing. This expansion, coupled with disciplined SG&A management, has amplified operating leverage, with operating income growing 72.3% year-over-year. However, the sustainability of this margin level warrants monitoring, as it may reflect temporary supply chain benefits rather than a permanent structural shift.
ROIC Inflection Signals Improved Capital Efficiency
Return on Invested Capital (ROIC) has improved to 11.8% in Q2 2026 from a low of 6.9% in Q1 2025, indicating a meaningful inflection in the company's ability to generate returns from its capital base.
The ROIC improvement appears driven by both margin expansion and a reduction in the capital base, as the company has been actively deleveraging. This trend contrasts with the prior period of relatively stable returns, suggesting the business is entering a phase of more efficient capital deployment. The current ROIC of 11.8% is now approaching the level of Ollie's (11.1%), a peer with a different model, but remains well below TJX's 32.3%, highlighting a significant gap in capital efficiency that may be structural.
Deleveraging Trend Improves Financial Flexibility
The debt-to-equity ratio has improved significantly from 1.18 in Q1 2024 to 0.70 in Q2 2026, a trend driven by both debt reduction and equity accumulation from retained earnings.
The deleveraging trend is a positive development, reducing financial risk and potentially lowering the company's cost of capital. However, the headline debt-to-equity ratio of 0.70 may understate the company's true leverage, as it excludes substantial lease liabilities that are a core component of its capital structure. Interest coverage remains exceptionally strong at 37.44x, indicating that debt service is highly comfortable and covenant risk is minimal.
Gross Margin Sustainability is the Key Misapplied Metric
The most commonly misapplied metric is the current gross margin of 33.8%, which appears elevated and may not be sustainable as supply chain conditions normalize and competition for off-price inventory intensifies.
Investors often extrapolate recent margin expansion into perpetuity, but for an off-price retailer like Ross, gross margins are structurally capped by the need to maintain a visible discount to full-price retailers. The current level is well above the company's historical average and peer benchmarks, suggesting it may reflect temporary factors like favorable freight rates or excess brand inventory. A more appropriate metric to monitor is the trend in 'average unit retail' (AUR) versus 'units per transaction' (UPT), which provides a clearer signal of underlying pricing power and consumer engagement.