Is Ross Stores, Inc. overvalued or undervalued?

As of 21 November 2024, the valuation grade for Ross Stores, Inc. has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a P/E ratio of 28, a Price to Book Value of 10.30, and an EV to EBITDA of 18.28, all of which suggest that the stock is trading at a premium compared to its earnings and assets.
In comparison to peers, Ross Stores, Inc. has a higher P/E ratio than The TJX Cos., Inc., which stands at 28.20, and a PEG ratio of 4.12 compared to The TJX's 4.5570. This indicates that Ross is priced higher relative to its growth expectations than its competitor. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -15.47% compared to the index's 2.44%, reinforcing the notion that the stock may be overvalued in the current market environment.