Using the PEG framework with analyst consensus forward EPS growth of 9.2% plus 0.8% dividend yield, Ross Stores, Inc. has a fair value of $60.17 based on NTM EPS (FY2026) of $6.52. The current PEG ratio is 3.59.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 8.5% |
| Dividend Yield | +0.8% |
| Adjusted Growth (clamped 8–25%) | 9.2% |
| Fair P/E | 9.2x |
| NTM EPS (FY2026) | $6.52 |
| Fair Value | $60.17 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $6.61 | — | — |
| FY2026E | $6.52 | -1.3% | 13 |
| FY2027E | $7.37 | +13.0% | 13 |
| FY2028E | $8.16 | +10.7% | 13 |
| FY2029E | $9.15 | +12.1% | 5 |
4Y Forward EPS CAGR: 8.5%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.7B | $4.87 | — |
| FY2022 | $1.5B | $4.38 | -10.1% |
| FY2023 | $1.9B | $5.56 | +26.9% |
| FY2024 | $2.1B | $6.32 | +13.7% |
| FY2025 | $2.1B | $6.61 | +4.6% |
4Y Historical EPS CAGR: 7.9%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.