Ross StoresROST +0.72%91 Return-on-Tangible-Equity is 41.62% as of Apr. 2026, which is 1% below its 10-year median of 41.88. GuruFocus rates ROST with a GF Score™ of 91/100 and a GF Value™ of $174.18 (Modestly Overvalued). Among 1,058 Retail - Cyclical companies, Ross Stores ranks better than 85.82% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Ross Stores's annualized net income for the quarter that ended in Apr. 2026 was $2,600 Mil. Ross Stores's average shareholder tangible equity for the quarter that ended in Apr. 2026 was $6,246 Mil. Therefore, Ross Stores's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 41.62%.
The historical rank and industry rank for Ross Stores's Return-on-Tangible-Equity or its related term are showing as below:
ROST'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.57 Med: 41.88 Max: 49.96
Current: 39.01
During the past 13 years, Ross Stores's highest Return-on-Tangible-Equity was 49.96%. The lowest was 2.57%. And the median was 41.88%.
ROST's Return-on-Tangible-Equity is ranked better than 85.82% of 1058
companies
in the Retail - Cyclical industry
Industry Median: 8.325
vs ROST: 39.01
Ross Stores (NAS:ROST) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Ross Stores Return-on-Tangible-Equity Related Terms
Ross Stores Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ross Stores's Return-on-Tangible-Equity 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.
ROST vs BURL, LULU, GAP: Return-on-Tangible-Equity Comparison
For the Apparel Retail subindustry, Ross Stores's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ross Stores's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ross Stores's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 41.62% mean?
Ross Stores (ROST) has a Return-on-Tangible-Equity of 41.62% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ross Stores and its competitors. This is near median its historical median of 41.88. Over the past decade, Ross Stores' Return-on-Tangible-Equity has ranged from 2.57 to 49.96. According to the industry distribution chart, Ross Stores ranks #150 out of 1058 companies in the Retail - Cyclical industry, placing it in the top 14.2%.
Is Ross Stores' Return-on-Tangible-Equity too high?
Ross Stores' current Return-on-Tangible-Equity of 41.62% is near median its 10-year median of 41.88. Over the past 10 years, this metric has ranged from a low of 2.57 to a high of 49.96. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.33. Ross Stores' value of 41.62% is 399.9% above this industry median. Based on the distribution chart, Ross Stores ranks #150 out of 1058 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Ross Stores has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ross Stores' Return-on-Tangible-Equity compare to BURL and LULU?
According to the Retail - Cyclical industry distribution chart, Ross Stores ranks #150 out of 1058 companies for Return-on-Tangible-Equity. This places Ross Stores in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.33. Ross Stores' value of 41.62% is 399.9% above this benchmark. Historically, Ross Stores' own Return-on-Tangible-Equity has ranged from 2.57 to 49.96 over the past decade. While the company's 10-year median is 41.88 vs. the industry median of 8.33, 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 Return-on-Tangible-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.33, based on 1,058 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ross Stores's current Return-on-Tangible-Equity of 41.62% is 399.9% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ross Stores and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ross Stores's current Return-on-Tangible-Equity is 41.62%, which is near median its own 10-year median of 41.88. 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 $174.18, compared to a current price of $213.43 — trading 22.5% above its estimated fair value. The current Return-on-Tangible-Equity is 41.62%, which is near median its 10-year median of 41.88 and 399.9% above the Retail - Cyclical industry median of 8.33. Ross Stores' overall GF Score™ is 91/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Ross Stores (ROST), the current Return-on-Tangible-Equity is 41.62% 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 $213.43 is trading 22.5% above its estimated GF Value™ of $174.18.
GuruFocus considers Ross Stores to be Modestly Overvalued.
Key valuation signals for ROST:
Return-on-Tangible-Equity: 41.62% (near median its 10-year median of 41.88)
GF Value™: $174.18 vs. price of $213.43 (22.5% above fair value)
Industry Position: 399.9% above the Retail - Cyclical median (#150 of 1058)
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.
91GF Score
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