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DCF valuation

What is Ross Stores, Inc. worth?

With the base-case assumptions below, a discounted cash flow model on Ross Stores, Inc.'s reported free cash flow gives $203.02 per share. The share price was $236.12 on September 25, 2026, 16% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$2.21B
Average free cash flow, last 5 years
$1.56B
Cash
$4.29B
balance sheet of August 1, 2026
Debt
$1.02B
balance sheet of August 1, 2026
Diluted shares, fiscal 2025
324,416,000
Revenue growth per year, last 5 years
12.7%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear7.5%5.0%2.0%10.0%$129.58-45%
Base12.5%7.5%2.5%9.0%$203.02-14%
Bull17.5%10.5%3.0%8.0%$349.36+48%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$259.21$276.62$297.90$324.50$358.70
8.0%$217.08$228.38$241.72$257.73$277.30
9.0%$186.40$194.12$203.02$213.42$225.70
10.0%$163.09$168.58$174.81$181.92$190.12
11.0%$144.84$148.86$153.36$158.42$164.15

Where the presets come from

Base: years 1 to 5 grow at Ross Stores, Inc.'s revenue growth rate over the last 5 fiscal years (12.7% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Ross Stores, Inc. company page