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RootsTSX:ROOT +3.65%62 EV-to-OCF is 7.33 as of Aug. 20, 2026, which is 2% below its 10-year median of 7.47. GuruFocus rates TSX:ROOT with a GF Score™ of 62/100 and a GF Value™ of C$3.10 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,134 Retail - Cyclical companies, Roots ranks better than 50.79% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Roots's Enterprise Value is C$242.0 Mil.
Roots's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2026 was C$33.0 Mil. Therefore, Roots's EV-to-OCF for today is 7.33.
The historical rank and industry rank for Roots's EV-to-OCF or its related term are showing as below:
TSX:ROOT'
s EV-to-OCF Range Over the Past 10 Years
Min: -45.23 Med: 7.47 Max: 25.24
Current: 7.06
During the past 11 years, the highest EV-to-OCF of Roots was 25.24. The lowest was -45.23. And the median was 7.47.
TSX:ROOT's EV-to-OCF is ranked better than 50.79% of 1134
companies
in the Retail - Cyclical industry
Industry Median: 7.31
vs TSX:ROOT: 7.06
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
As of today (2026-08-20), Roots's stock price is C$3.69.
Roots's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Apr. 2026 was C$0.060. Therefore, Roots's PE Ratio (TTM) for today is 61.50.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Roots's share price for today is C$3.69.
Roots's Earnings per Share (Diluted) 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 C$0.060.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Roots EV-to-OCF Related Terms
Roots EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Roots's EV-to-OCF 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.
For the Apparel Retail subindustry, Roots's EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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.
Roots EV-to-OCF vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Roots's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Roots's EV-to-OCF falls into.
Roots's current Enterprise Value is C$242.0 Mil.
Roots's Cash Flow from Operations 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 C$33.0 Mil.
* 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.
Roots (TSX:ROOT) has a EV-to-OCF of 7.33 as of Aug. 20, 2026. This is near median its historical median of 7.47. According to the industry distribution chart, Roots ranks #558 out of 1134 companies in the Retail - Cyclical industry, placing it in the top 49.2%.
Is Roots' EV-to-OCF too high?
Roots' current EV-to-OCF of 7.33 is near median its 10-year median of 7.47. The Retail - Cyclical industry median EV-to-OCF is 7.31. Roots' value of 7.33 is 0.3% above this industry median. Based on the distribution chart, Roots ranks #558 out of 1134 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Roots has a GF Score™ of 62/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Roots' EV-to-OCF compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Roots ranks #558 out of 1134 companies for EV-to-OCF. This puts Roots in the upper half of its industry. The industry median EV-to-OCF is 7.31. Roots' value of 7.33 is 0.3% above this benchmark. While the company's 10-year median is 7.47 vs. the industry median of 7.31, Roots has consistently been above 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 EV-to-OCF for a Retail - Cyclical company?
The median EV-to-OCF among Retail - Cyclical companies is 7.31, based on 1,134 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Roots's current EV-to-OCF of 7.33 is 0.3% above 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 EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Retail - Cyclical industry, the median EV-to-OCF is 7.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Roots's current EV-to-OCF is 7.33, which is near median its own 10-year median of 7.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Roots stock overvalued right now?
Based on GuruFocus' analysis, Roots (TSX:ROOT) is currently considered Modestly Overvalued. The stock's GF Value™ is C$3.10, compared to a current price of C$3.69 — trading 19% above its estimated fair value. The current EV-to-OCF is 7.33, which is near median its 10-year median of 7.47 and 0.3% above the Retail - Cyclical industry median of 7.31. Roots' overall GF Score™ is 62/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Roots (TSX:ROOT), the current EV-to-OCF is 7.33 as of Aug. 20, 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 Roots (TSX:ROOT) Overvalued in 2026?
Based on GuruFocus' analysis, Roots stock appears to be overvalued.
The current stock price of C$3.69 is trading 19% above its estimated GF Value™ of C$3.10.
GuruFocus considers Roots to be Modestly Overvalued.
Key valuation signals for TSX:ROOT:
EV-to-OCF: 7.33 (near median its 10-year median of 7.47)
GF Value™: C$3.10 vs. price of C$3.69 (19% above fair value)
Industry Position: 0.3% above the Retail - Cyclical median (#558 of 1134)
No single metric tells the full story. See the TSX:ROOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Roots Corp provides a portfolio of apparel, leather goods, accessories, and footwear for men, women, and children under the Roots brand. Its merchandise includes genuine leather, such as jackets, bags, kids & baby clothing, and leather, linens, towels, and accessories. The company operates through two segments: Direct-To-Consumer (DTC), which accounts for the majority of revenue, and Partners and Other. The DTC segment sells products through the company's corporate retail stores and e-commerce website, and the Partners and Other segment engages in the wholesale of Roots-branded products to the company's international operating partners, and it earns royalties on the retail sales of Roots-branded products.
62GF Score
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