ROST (Ross Stores) Earnings Yield (Joel Greenblatt) %: 4.17% (As of Apr. 2026) — 26% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ROST Ross Stores Inc ROST
89 GF Score
Price $255.23
GF Value $175.70
Valuation Significantly Overvalued
! 5 Warning Signs
View Full Analysis

What is Ross Stores Earnings Yield (Joel Greenblatt) %?

Ross Stores ROST +0.36% 89 Earnings Yield (Joel Greenblatt) % is 4.17% as of Apr. 2026, which is 26% below its 10-year median of 5.60. GuruFocus rates ROST with a GF Score™ of 89/100 and a GF Value™ of $175.70 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,130 Retail - Cyclical companies, Ross Stores ranks worse than 60.27% on this metric.

Ross Stores's Enterprise Value for the quarter that ended in Apr. 2026 was $73,721 Mil. Ross Stores's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 was $3,072 Mil. Ross Stores's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2026 was 4.17%.

The historical rank and industry rank for Ross Stores's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

ROST' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 0.41   Med: 5.6   Max: 9.13
Current: 3.72

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Ross Stores was 9.13%. The lowest was 0.41%. And the median was 5.60%.

ROST's Earnings Yield (Joel Greenblatt) % is ranked worse than
60.27% of 1130 companies
in the Retail - Cyclical industry
Industry Median: 5.45 vs ROST: 3.72

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Ross Stores's Forward Rate of Return (Yacktman) % for the quarter that ended in Apr. 2026 was 15.78%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Ross Stores  (NAS:ROST) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Ross Stores Earnings Yield (Joel Greenblatt) % Related Terms


Ross Stores Earnings Yield (Joel Greenblatt) % Historical Data

* Premium members only.

The historical data trend for Ross Stores's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Ross Stores Earnings Yield (Joel Greenblatt) % Chart

Ross Stores Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.65 4.96 5.32 5.59 4.69

Ross Stores Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.03 6.08 5.34 4.69 4.17

ROST vs BURL, LULU, GAP: Earnings Yield (Joel Greenblatt) % Comparison

For the Apparel Retail subindustry, Ross Stores's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ross Stores Earnings Yield (Joel Greenblatt) % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Ross Stores's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Ross Stores's Earnings Yield (Joel Greenblatt) % falls into.


ROST
89GF Score
Ross Stores Inc ROST
Earnings Yield (Joel Greenblatt) % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ross Stores Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Ross Storess Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Jan. 2026 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=2880.099/61426.06645
=4.69 %

Ross Stores's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $3,072 Mil.


What does a Earnings Yield (Joel Greenblatt) % of 4.17% mean?
Ross Stores (ROST) has a Earnings Yield (Joel Greenblatt) % of 4.17% as of Apr. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Ross Stores and its competitors. This is 26% below median its historical median of 5.60. Over the past decade, Ross Stores' Earnings Yield (Joel Greenblatt) % has ranged from 0.41 to 9.13. According to the industry distribution chart, Ross Stores ranks #681 out of 1130 companies in the Retail - Cyclical industry, placing it in the top 60.3%.
Is Ross Stores' Earnings Yield (Joel Greenblatt) % too high?
Ross Stores' current Earnings Yield (Joel Greenblatt) % of 4.17% is 26% below median its 10-year median of 5.60. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 9.13. The Retail - Cyclical industry median Earnings Yield (Joel Greenblatt) % is 5.45. Ross Stores' value of 4.17% is 23.5% below this industry median. Based on the distribution chart, Ross Stores ranks #681 out of 1130 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Ross Stores has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ross Stores' Earnings Yield (Joel Greenblatt) % compare to BURL and LULU?
According to the Retail - Cyclical industry distribution chart, Ross Stores ranks #681 out of 1130 companies for Earnings Yield (Joel Greenblatt) %. This places Ross Stores in the lower half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 5.45. Ross Stores' value of 4.17% is 23.5% below this benchmark. Historically, Ross Stores' own Earnings Yield (Joel Greenblatt) % has ranged from 0.41 to 9.13 over the past decade. While the company's 10-year median is 5.60 vs. the industry median of 5.45, Ross Stores has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Retail - Cyclical company?
The median Earnings Yield (Joel Greenblatt) % among Retail - Cyclical companies is 5.45, based on 1,130 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ross Stores's current Earnings Yield (Joel Greenblatt) % of 4.17% is 23.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Ross Stores and its competitors. For the Retail - Cyclical industry, the median Earnings Yield (Joel Greenblatt) % is 5.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ross Stores's current Earnings Yield (Joel Greenblatt) % is 4.17%, which is 26% below median its own 10-year median of 5.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ross Stores stock overvalued right now?
Based on GuruFocus' analysis, Ross Stores (ROST) is currently considered Significantly Overvalued. The stock's GF Value™ is $175.70, compared to a current price of $255.23 — trading 45.3% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 4.17%, which is 26% below median its 10-year median of 5.60 and 23.5% below the Retail - Cyclical industry median of 5.45. Ross Stores' overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Ross Stores (ROST), the current Earnings Yield (Joel Greenblatt) % is 4.17% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ross Stores (ROST) Overvalued in 2026?

Based on GuruFocus' analysis, Ross Stores stock appears to be overvalued. The current stock price of $255.23 is trading 45.3% above its estimated GF Value™ of $175.70. GuruFocus considers Ross Stores to be Significantly Overvalued.

Key valuation signals for ROST:

  • Earnings Yield (Joel Greenblatt) %: 4.17% (26% below median its 10-year median of 5.60)
  • GF Value™: $175.70 vs. price of $255.23 (45.3% above fair value)
  • GF Score™: 89/100 with 5 warning signs
  • Industry Position: 23.5% below the Retail - Cyclical median (#681 of 1130)

No single metric tells the full story. See the ROST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ross Stores Business Description

Address 5130 Hacienda Drive, Dublin, CA, USA, 94568
Ross Stores, founded in 1982, is a US-focused off-price apparel and home fashion retailer operating more than 2,100 stores across 43 states, primarily under the Ross Dress for Less banner, with a smaller footprint through dd's Discounts. In fiscal 2025, the company generated over $22 billion in sales. Ross offers branded apparel, footwear, accessories, and home goods at a 20%-60% discount to department and specialty store prices, sourcing closeouts and excess inventory from vendors worldwide.
89GF Score

Get the complete analysis for ROST

Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$255.23
Price
$175.70
GF Value