How Does This Discount Retailer Operate?
Ross Stores runs off-price retail chains that sell branded apparel and home-related goods at discounted prices. The company buys inventory from a wide range of vendors and sells through a large store footprint in the US. Its model centers on turning opportunistic buys into frequent, value-oriented store visits. At today’s scale, it sits among the larger publicly traded US retailers, with a market value around USD 72.9 billion.
Are Growth And Margins Holding Steady?
FundamentalsFor the year ended January 31, 2026 (reported in USD), revenue was about USD 22.8 billion, growing 7.7% year over year, with EBIT of roughly USD 2.7 billion. Over the trailing period, profitability held at a 27.71% gross margin and an 11.90% operating margin.
Cash on hand was USD 4.6 billion alongside total debt of about USD 1.0 billion, leaving the balance sheet positioned with more cash than debt. Depreciation and amortization ran at USD 509.4 million, and the cash flow proxy came in at about USD 2.5 billion.
Is The Market Overpaying For Stability?
DCF / MultiplesAt USD 226.37, Ross trades above the central fair value estimate and below the stronger-outcome value, with the DCF range running from USD 111.63 through USD 173.50 to USD 248.93. The pricing also sits alongside a 34.00 P/E and 21.71 EV/EBITDA, which places a relatively rich tag on a business that already carries net cash.
Valuation Leaves Little Cushion
TakeawayThe price is leaning on a lot of good news already. The balance sheet can absorb shocks, but it cannot justify any price. For this to work, sales growth and operating margins must stay firm. If margins slip, the valuation has little room to hide.