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Ross Stores (WBO:ROST) Peter Lynch Fair Value : €144.14 (As of Dec. 13, 2024)


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What is Ross Stores Peter Lynch Fair Value?

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Here, as of today, Ross Stores's PEG is 1. Ross Stores's 5-Year TTM EBITDA Growth Rate is 24.61. Ross Stores's EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2024 was €5.86. Therefore, the Peter Lynch Fair Value for today is €144.14.

As of today (2024-12-13), Ross Stores's share price is €147.28. Ross Stores's Peter Lynch fair value is €144.14. Therefore, Ross Stores's Price to Peter Lynch Fair Value Ratio for today is 1.02.


The historical rank and industry rank for Ross Stores's Peter Lynch Fair Value or its related term are showing as below:

WBO:ROST' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 1.04   Med: 1.6   Max: 4.53
Current: 1.15


During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Ross Stores was 4.53. The lowest was 1.04. And the median was 1.60.


WBO:ROST's Price-to-Peter-Lynch-Fair-Value is ranked worse than
52.66% of 319 companies
in the Retail - Cyclical industry
Industry Median: 1.13 vs WBO:ROST: 1.15

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.


Ross Stores Peter Lynch Fair Value Historical Data

The historical data trend for Ross Stores's Peter Lynch Fair Value 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.

* Premium members only.

Ross Stores Peter Lynch Fair Value Chart

Ross Stores Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Peter Lynch Fair Value
Get a 7-Day Free Trial Premium Member Only Premium Member Only 46.59 - - - 56.31

Ross Stores Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Peter Lynch Fair Value 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 35.42 56.31 80.52 104.85 129.86

Competitive Comparison of Ross Stores's Peter Lynch Fair Value

For the Apparel Retail subindustry, Ross Stores's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value 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's Price-to-Peter-Lynch-Fair-Value Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Ross Stores's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:

* The bar in red indicates where Ross Stores's Price-to-Peter-Lynch-Fair-Value falls into.



Ross Stores Peter Lynch Fair Value Calculation

Ross Stores's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year TTM EBITDA Growth Rate***EPS without NRI (TTM)
=1* 24.61 *5.857
=144.14

Ross Stores's EPS without NRI for the trailing twelve months (TTM) ended in Oct. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €5.86.


* 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.

** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.

If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.

If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.


Ross Stores  (WBO:ROST) Peter Lynch Fair Value Explanation

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.

Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.

Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 24.61 instead of 15 in this case.

Ross Stores's Price to Peter Lynch Fair Value Ratio for today is calculated as

Price to Peter Lynch Fair Value=Share Price/Peter Lynch Fair Value
=147.28/144.14
=1.02

* 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 Peter Lynch Fair Value Related Terms

Thank you for viewing the detailed overview of Ross Stores's Peter Lynch Fair Value provided by GuruFocus.com. Please click on the following links to see related term pages.


Ross Stores Business Description

Address
5130 Hacienda Drive, Dublin, CA, USA, 94568-7579
Ross Stores operates as an off-price apparel and accessories retailer with the majority of its sales derived from its Ross Dress for Less banner. The company opportunistically procures excess brand-name merchandise made available via manufacturing overruns and retail liquidation sales at a 20%-60% discount to full prices. As such, its stores are often filled with a vast array of stock-keeping units, each with minimal product depth that creates a treasure hunt shopping experience. The firm's more than 1,750 Ross Dress for Less stores are primarily located in densely populated suburban communities and typically serve middle-income consumers. Ross also operates about 350 DD's Discounts chains targeting lower-income shoppers.