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Ross StoresROST +0.09%90 Forward Rate of Return (Yacktman) % is 14.48% as of Jul. 2026, which is 8% below its 10-year median of 15.70. GuruFocus rates ROST with a GF Score™ of 90/100 and a GF Value™ of $182.26 (Modestly Overvalued). Among 791 Retail - Cyclical companies, Ross Stores ranks better than 54.99% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Ross Stores's forward rate of return for was 14.48%.
The historical rank and industry rank for Ross Stores's Forward Rate of Return (Yacktman) % or its related term are showing as below:
ROST'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -7.41 Med: 15.7 Max: 23.77
Current: 14.7
During the past 13 years, Ross Stores's highest Forward Rate of Return was 23.77. The lowest was -7.41. And the median was 15.70.
ROST's Forward Rate of Return (Yacktman) % is ranked better than 54.99% of 791
companies
in the Retail - Cyclical industry
Industry Median: 12.88
vs ROST: 14.70
Unlike the Earnings Yield %, 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) Forward Rate of Return (Yacktman) % Explanation
Unlike the Earnings Yield, 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.
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.
Be Aware
In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.
Ross Stores Forward Rate of Return (Yacktman) % Related Terms
Ross Stores Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Ross Stores's Forward Rate of Return (Yacktman) % 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 Forward Rate of Return (Yacktman) % Chart
ROST vs BURL, LULU, GAP: Forward Rate of Return (Yacktman) % Comparison
For the Apparel Retail subindustry, Ross Stores's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % 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 Forward Rate of Return (Yacktman) % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ross Stores's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Ross Stores's Forward Rate of Return (Yacktman) % falls into.
Ross Stores Forward Rate of Return (Yacktman) % Calculation
Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
Ross Stores's Forward Rate of Return of Jul. 2026 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year EBITDA Growth Rate
=
4.86057143
/
251.07
+
0.1254
=
14.48 %
* 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.
What does a Forward Rate of Return (Yacktman) % of 14.48% mean?
Ross Stores (ROST) has a Forward Rate of Return (Yacktman) % of 14.48% as of Jul. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Ross Stores and its competitors. This is near median its historical median of 15.70. According to the industry distribution chart, Ross Stores ranks #356 out of 791 companies in the Retail - Cyclical industry, placing it in the top 45%.
Is Ross Stores' Forward Rate of Return (Yacktman) % too high?
Ross Stores' current Forward Rate of Return (Yacktman) % of 14.48% is near median its 10-year median of 15.70. The Retail - Cyclical industry median Forward Rate of Return (Yacktman) % is 12.88. Ross Stores' value of 14.48% is 12.4% above this industry median. Based on the distribution chart, Ross Stores ranks #356 out of 791 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Ross Stores has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ross Stores' Forward Rate of Return (Yacktman) % compare to BURL and LULU?
According to the Retail - Cyclical industry distribution chart, Ross Stores ranks #356 out of 791 companies for Forward Rate of Return (Yacktman) %. This puts Ross Stores in the upper half of its industry. The industry median Forward Rate of Return (Yacktman) % is 12.88. Ross Stores' value of 14.48% is 12.4% above this benchmark. While the company's 10-year median is 15.70 vs. the industry median of 12.88, Ross Stores 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 Forward Rate of Return (Yacktman) % for a Retail - Cyclical company?
The median Forward Rate of Return (Yacktman) % among Retail - Cyclical companies is 12.88, based on 791 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ross Stores's current Forward Rate of Return (Yacktman) % of 14.48% is 12.4% 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 Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Ross Stores and its competitors. For the Retail - Cyclical industry, the median Forward Rate of Return (Yacktman) % is 12.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ross Stores's current Forward Rate of Return (Yacktman) % is 14.48%, which is near median its own 10-year median of 15.70. 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 Modestly Overvalued. The stock's GF Value™ is $182.26, compared to a current price of $225.49 — trading 23.7% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 14.48%, which is near median its 10-year median of 15.70 and 12.4% above the Retail - Cyclical industry median of 12.88. Ross Stores' overall GF Score™ is 90/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For Ross Stores (ROST), the current Forward Rate of Return (Yacktman) % is 14.48% as of Jul. 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 $225.49 is trading 23.7% above its estimated GF Value™ of $182.26.
GuruFocus considers Ross Stores to be Modestly Overvalued.
Key valuation signals for ROST:
Forward Rate of Return (Yacktman) %: 14.48% (near median its 10-year median of 15.70)
GF Value™: $182.26 vs. price of $225.49 (23.7% above fair value)
Industry Position: 12.4% above the Retail - Cyclical median (#356 of 791)
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, 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.
90GF Score
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