Price to Book Value (P/BV)
since 2005
Calculation
Ross Stores Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Stockholders’ equity1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 29, 2022 | 8.26 | = | 95.55 | ÷ | 11.57 | 11.57 | = | 4,060,050 | ÷ | 350,892,474 | |
| Mar 30, 2021 | 13.04 | = | 120.38 | ÷ | 9.23 | 9.23 | = | 3,290,640 | ÷ | 356,523,349 | |
| Mar 31, 2020 | 9.21 | = | 86.97 | ÷ | 9.44 | 9.44 | = | 3,359,249 | ÷ | 355,896,821 | |
| Apr 2, 2019 | 10.44 | = | 93.76 | ÷ | 8.98 | 8.98 | = | 3,305,746 | ÷ | 368,247,009 | |
| Apr 3, 2018 | 9.46 | = | 76.20 | ÷ | 8.05 | 8.05 | = | 3,049,308 | ÷ | 378,713,373 | |
| Mar 28, 2017 | 9.38 | = | 65.77 | ÷ | 7.01 | 7.01 | = | 2,748,017 | ÷ | 391,895,145 | |
| Mar 29, 2016 | 9.43 | = | 58.09 | ÷ | 6.16 | 6.16 | = | 2,471,991 | ÷ | 401,287,592 | |
| Mar 31, 2015 | 9.59 | = | 52.68 | ÷ | 5.49 | 5.49 | = | 2,279,210 | ÷ | 414,978,552 | |
| Apr 1, 2014 | 7.73 | = | 36.45 | ÷ | 4.71 | 4.71 | = | 2,007,302 | ÷ | 425,938,590 | |
| Apr 2, 2013 | 7.40 | = | 29.71 | ÷ | 4.02 | 4.02 | = | 1,766,863 | ÷ | 440,037,780 | |
| Mar 27, 2012 | 8.95 | = | 29.50 | ÷ | 3.30 | 3.30 | = | 1,493,012 | ÷ | 453,040,332 | |
| Mar 29, 2011 | 6.19 | = | 17.55 | ÷ | 2.83 | 2.83 | = | 1,332,692 | ÷ | 470,399,976 | |
| Mar 30, 2010 | 5.64 | = | 13.32 | ÷ | 2.36 | 2.36 | = | 1,157,293 | ÷ | 490,119,460 | |
| Mar 31, 2009 | 4.56 | = | 8.97 | ÷ | 1.97 | 1.97 | = | 996,369 | ÷ | 506,992,348 | |
| Apr 1, 2008 | 4.26 | = | 7.77 | ÷ | 1.82 | 1.82 | = | 970,649 | ÷ | 532,729,332 | |
| Apr 3, 2007 | 5.27 | = | 8.62 | ÷ | 1.64 | 1.64 | = | 909,830 | ÷ | 556,092,672 | |
| Apr 12, 2006 | 5.05 | = | 7.36 | ÷ | 1.46 | 1.46 | = | 836,172 | ÷ | 573,994,456 | |
| Apr 14, 2005 | 5.40 | = | 6.99 | ÷ | 1.30 | 1.30 | = | 765,569 | ÷ | 590,938,572 |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Ross Stores Inc. Annual Report.
Analysis of the financial data from 2005 to 2022 reveals a consistent expansion in both market valuation and intrinsic book value, although the rate of growth in share price significantly outpaced the growth of net assets.
- Book Value Per Share (BVPS) Progression
- A steady and uninterrupted upward trend in book value per share is observed, rising from $1.30 in 2005 to $11.57 in 2022. This linear growth indicates a consistent accumulation of net assets and retained earnings over the seventeen-year period.
- Price to Book Value (P/BV) Ratio Trends
- The P/BV ratio exhibits three distinct phases of valuation. From 2005 to 2009, the ratio remained relatively stable, fluctuating within a range of 4.26 to 5.40. A period of valuation expansion occurred between 2010 and 2014, during which the ratio increased from 5.64 to 7.73. From 2015 to 2021, the ratio entered a high-valuation regime, peaking at 13.04 in 2021, before experiencing a correction to 8.26 in 2022.
- Market Price Dynamics and Valuation Premium
- The share price demonstrated substantial growth, increasing from $6.99 in 2005 to a peak of $120.38 in 2021. The widening gap between the share price and the BVPS suggests that the market assigned an increasing premium to the company's intangible assets, brand equity, or future earnings potential. The sharp increase in the P/BV ratio toward 2021 indicates a period of heightened market optimism, while the subsequent decline in 2022 suggests a normalization of the valuation multiple.
The overall trajectory indicates a transition from a conservative valuation multiple in the mid-2000s to an aggressive market valuation by 2021, followed by a moderate contraction in the final year of the period analyzed.
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Comparison to Competitors
Ross Stores Inc., P/BV, long-term trends, comparison to competitors
| Ross Stores Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Mar 29, 2022 | 8.26 | 7.25 | — | — | 12.14 |
| Mar 30, 2021 | 13.04 | 11.60 | 95.58 | 90.79 | 13.68 |
| Mar 31, 2020 | 9.21 | 17.86 | — | 25.96 | 9.42 |
| Apr 2, 2019 | 10.44 | 16.11 | — | 24.01 | 12.79 |
| Apr 3, 2018 | 9.46 | 18.34 | 139.52 | 11.89 | 10.23 |
| Mar 28, 2017 | 9.38 | 24.98 | 41.08 | 10.87 | 11.27 |
| Mar 29, 2016 | 9.43 | 20.47 | 25.88 | 8.87 | 12.09 |
| Mar 31, 2015 | 9.59 | 20.65 | 15.76 | 7.10 | 11.23 |
| Apr 1, 2014 | 7.73 | 15.33 | 8.68 | 4.20 | 10.18 |
| Apr 2, 2013 | 7.40 | 16.90 | 5.83 | 2.99 | 9.36 |
| Mar 27, 2012 | 8.95 | 15.14 | 4.23 | 2.28 | 9.20 |
| Mar 29, 2011 | 6.19 | 10.52 | 3.21 | 1.96 | 6.30 |
| Mar 30, 2010 | 5.64 | 11.25 | 2.85 | 1.84 | 6.12 |
| Mar 31, 2009 | 4.56 | 10.60 | 2.36 | 1.49 | 4.96 |
| Apr 1, 2008 | 4.26 | 9.43 | 2.79 | 2.22 | 6.74 |
| Apr 3, 2007 | 5.27 | 26.19 | 2.90 | 3.04 | 5.25 |
| Apr 12, 2006 | 5.05 | 38.87 | 3.38 | 3.54 | 6.17 |
| Apr 14, 2005 | 5.40 | 66.44 | 3.37 | 3.61 | 7.15 |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
Ross Stores Inc., P/BV, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Ross Stores Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Mar 29, 2022 | 8.26 | 11.07 |
| Mar 30, 2021 | 13.04 | 14.31 |
| Mar 31, 2020 | 9.21 | 20.07 |
| Apr 2, 2019 | 10.44 | 19.77 |
| Apr 3, 2018 | 9.46 | 20.07 |
| Mar 28, 2017 | 9.38 | 23.06 |
| Mar 29, 2016 | 9.43 | 18.06 |
| Mar 31, 2015 | 9.59 | 14.67 |
| Apr 1, 2014 | 7.73 | 9.31 |
| Apr 2, 2013 | 7.40 | 7.64 |
| Mar 27, 2012 | 8.95 | 5.82 |
| Mar 29, 2011 | 6.19 | 4.12 |
| Mar 30, 2010 | 5.64 | 3.84 |
| Mar 31, 2009 | 4.56 | 3.13 |
| Apr 1, 2008 | 4.26 | 3.23 |
| Apr 3, 2007 | 5.27 | 3.70 |
| Apr 12, 2006 | 5.05 | 3.90 |
| Apr 14, 2005 | 5.40 | 4.03 |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).
Comparison to Industry (Consumer Discretionary)
Ross Stores Inc., P/BV, long-term trends, comparison to industry (consumer discretionary)
| Ross Stores Inc. | Consumer Discretionary | |
|---|---|---|
| Mar 29, 2022 | 8.26 | 9.41 |
| Mar 30, 2021 | 13.04 | 13.21 |
| Mar 31, 2020 | 9.21 | 17.99 |
| Apr 2, 2019 | 10.44 | 13.59 |
| Apr 3, 2018 | 9.46 | 11.35 |
| Mar 28, 2017 | 9.38 | 10.74 |
| Mar 29, 2016 | 9.43 | 8.39 |
| Mar 31, 2015 | 9.59 | 7.17 |
| Apr 1, 2014 | 7.73 | 5.83 |
| Apr 2, 2013 | 7.40 | 5.12 |
| Mar 27, 2012 | 8.95 | 4.39 |
| Mar 29, 2011 | 6.19 | 3.84 |
| Mar 30, 2010 | 5.64 | 4.04 |
| Mar 31, 2009 | 4.56 | 4.72 |
| Apr 1, 2008 | 4.26 | 4.98 |
| Apr 3, 2007 | 5.27 | 3.91 |
| Apr 12, 2006 | 5.05 | 4.50 |
| Apr 14, 2005 | 5.40 | 3.49 |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).