Is Ross Stores, Inc. overvalued or undervalued?

As of 14 August 2025, the valuation grade for Ross Stores, Inc. has moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears fairly valued based on its current metrics. Key valuation ratios include a P/E ratio of 28, an EV to EBITDA of 18.28, and a PEG ratio of 4.12, which suggest that while the stock is not undervalued, it is also not excessively priced compared to its earnings growth potential.
In comparison to peers, Ross Stores has a P/E ratio of 29.21, which is lower than The TJX Companies, Inc. at 31.33, indicating a competitive valuation within the industry. Additionally, Ross's EV to EBITDA ratio of 18.28 is also in line with the industry average, suggesting it is positioned well relative to its peers. However, the company's recent stock performance has lagged behind the S&P 500, with a YTD return of -3.42% compared to the index's 12.22%, reinforcing the notion that while fairly valued, it may face challenges in the near term.