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ROST - Ross Stores Inc Fair Value Calculator

Earnings Per Share : $
  
Default value for Earning per Share (without none-recurring items) is the TTM GAAP earning. Use the information at right side to adjust.
Growth Rate In the Next:
Years : %
  
The number of years in the growth stage, and the average annual growth rate. The default value for the growth rate is the average Earings Per Share (eps) growth rate of the past 10 years. If this growth rate is high than 20% a year, it is set to 20%.
Business Predictability  
Terminal Growth Rate: %
  
After the growth stage, it is more reasonable to set the terminal growth rate at the inflation rate. The terminal growth rate must be smaller than the discount rate to make the calculation converge.
Years of Terminal Growth:
  
The number of years for terminal value calculation. The value after this is considered zero. Default is 10.
Discount Rate:
%
  
A reasonable discount rate assumption should be at least the long term average return of the stock market, which is about 11%, because investors can always invest passively in an index fund and get an average return. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 10% - 20%.
Tangible Book Value:
$
  
Default Book Value is the tangible book value, which may underestimate or overestimate the real value
Growth Value:
 
  
Cumulative earnings during the growth stage discounted to current using the discount rate.
Terminal Value:
 
  
Cumulative earnings during the terminal stage discounted to current using the discount rate.
= Fair Value:
 
  
Intrinsic Value = Future Earnings at Growth Stage + Terminal Value.
 
Margin Of Safety:
 

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User Comments

Stitifier
ReplyStitifier - 5 months ago
Sgietl, it seems to come largely on the back of share buybacks. Diluted shares outstanding has decreased by a 2.6% CAGR over that time period from 240m to 216m today. This is a fairly consistent trend; shares have decreased by about a 3.3% CAGR since 2005.
Sgietl
ReplySgietl - 6 months ago
Doing the growth analysis for ROST it seems that EPS has grown 68% from 2011 to 2014 whereas the NOI growth is merely 51%. How can the difference be explained?
Thank you
SG



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