Using the industry peer median P/E multiple (trailing + forward), Ross Stores, Inc. (ROST) has a fair value of $149.61 based on 6 comparable companies in the Apparel - Retail industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Ross Stores, Inc.ROST | 69,690 | 32.6x | 33.1x |
| Hilton Worldwide Holdings Inc.HLT | 70,481 | 49.5x | 33.5x |
| AutoZone, Inc.AZO | 55,766 | 23.4x | 22.6x |
| Chipotle Mexican Grill, Inc.CMG | 42,703 | 28.3x | 28.3x |
| eBay Inc.EBAY | 40,355 | 20.6x | 14.7x |
| Las Vegas Sands Corp.LVS | 35,355 | 22.3x | 22.5x |
| Copart, Inc.CPRT | 32,075 | 20.8x | 23.0x |
| Industry Median | 22.8x | 22.8x | |
| (*) Profit after tax | 2,145 | 2,107 | |
| Equity Value | 48,921 | 47,704 | |
| (/) Outstanding shares | 323 | 323 | |
| Fair Price | $151 | $148 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.