Price to Earnings (P/E)
since 2005
Calculation
Ross Stores Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net earnings1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 29, 2022 | 19.46 | = | 95.55 | ÷ | 4.91 | 4.91 | = | 1,722,589 | ÷ | 350,892,474 | |
| Mar 30, 2021 | 502.66 | = | 120.38 | ÷ | 0.24 | 0.24 | = | 85,382 | ÷ | 356,523,349 | |
| Mar 31, 2020 | 18.64 | = | 86.97 | ÷ | 4.67 | 4.67 | = | 1,660,928 | ÷ | 355,896,821 | |
| Apr 2, 2019 | 21.75 | = | 93.76 | ÷ | 4.31 | 4.31 | = | 1,587,457 | ÷ | 368,247,009 | |
| Apr 3, 2018 | 21.18 | = | 76.20 | ÷ | 3.60 | 3.60 | = | 1,362,753 | ÷ | 378,713,373 | |
| Mar 28, 2017 | 23.06 | = | 65.77 | ÷ | 2.85 | 2.85 | = | 1,117,654 | ÷ | 391,895,145 | |
| Mar 29, 2016 | 22.84 | = | 58.09 | ÷ | 2.54 | 2.54 | = | 1,020,661 | ÷ | 401,287,592 | |
| Mar 31, 2015 | 23.64 | = | 52.68 | ÷ | 2.23 | 2.23 | = | 924,724 | ÷ | 414,978,552 | |
| Apr 1, 2014 | 18.54 | = | 36.45 | ÷ | 1.97 | 1.97 | = | 837,304 | ÷ | 425,938,590 | |
| Apr 2, 2013 | 16.62 | = | 29.71 | ÷ | 1.79 | 1.79 | = | 786,763 | ÷ | 440,037,780 | |
| Mar 27, 2012 | 20.34 | = | 29.50 | ÷ | 1.45 | 1.45 | = | 657,170 | ÷ | 453,040,332 | |
| Mar 29, 2011 | 14.88 | = | 17.55 | ÷ | 1.18 | 1.18 | = | 554,797 | ÷ | 470,399,976 | |
| Mar 30, 2010 | 14.74 | = | 13.32 | ÷ | 0.90 | 0.90 | = | 442,757 | ÷ | 490,119,460 | |
| Mar 31, 2009 | 14.89 | = | 8.97 | ÷ | 0.60 | 0.60 | = | 305,441 | ÷ | 506,992,348 | |
| Apr 1, 2008 | 15.86 | = | 7.77 | ÷ | 0.49 | 0.49 | = | 261,051 | ÷ | 532,729,332 | |
| Apr 3, 2007 | 19.84 | = | 8.62 | ÷ | 0.43 | 0.43 | = | 241,634 | ÷ | 556,092,672 | |
| Apr 12, 2006 | 21.16 | = | 7.36 | ÷ | 0.35 | 0.35 | = | 199,632 | ÷ | 573,994,456 | |
| Apr 14, 2005 | 24.31 | = | 6.99 | ÷ | 0.29 | 0.29 | = | 169,902 | ÷ | 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.
The financial trajectory from 2005 to 2022 is characterized by a long-term increase in both share price and earnings per share (EPS), with the price-to-earnings (P/E) ratio exhibiting distinct phases of contraction, stabilization, and an extreme short-term anomaly.
- Valuation Compression (2005–2010)
- A consistent downward trend in the P/E ratio is observed during this period, falling from 24.31 in 2005 to 14.74 by 2010. This contraction occurred despite a steady increase in EPS, suggesting that earnings growth outpaced the appreciation of the share price, leading to a more conservative valuation multiple.
- Valuation Stabilization (2011–2019)
- The P/E ratio entered a period of relative stability, oscillating primarily between 14.88 and 23.64. This suggests a market equilibrium where the share price growth closely tracked the consistent expansion of earnings per share, which rose from 1.18 in 2011 to 4.31 in 2019.
- Earnings Shock and Recovery (2020–2022)
- A severe divergence between price and earnings occurred in 2021. While the share price reached a peak of 120.38, EPS collapsed to 0.24, resulting in an outlier P/E ratio of 502.66. This indicates a temporary decoupling of market valuation from current profitability. By 2022, the P/E ratio reverted to a historical norm of 19.46 as EPS recovered to 4.91, reflecting a restoration of fundamental valuation levels.
Overall, the data indicates a robust long-term growth profile in earnings capacity, with the market generally valuing the company between 15x and 24x earnings, notwithstanding the significant volatility experienced in 2021.
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Comparison to Competitors
Ross Stores Inc., P/E, 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 | 19.46 | — | 19.94 | 17.84 | 22.20 |
| Mar 30, 2021 | 502.66 | 48.08 | 24.51 | 22.36 | 881.78 |
| Mar 31, 2020 | 18.64 | 78.20 | 17.38 | 11.96 | 17.13 |
| Apr 2, 2019 | 21.75 | 86.30 | 18.87 | 37.80 | 21.11 |
| Apr 3, 2018 | 21.18 | 79.30 | 23.51 | 20.26 | 20.19 |
| Mar 28, 2017 | 23.06 | 228.25 | 22.37 | 22.62 | 22.11 |
| Mar 29, 2016 | 22.84 | 166.52 | 23.32 | 26.67 | 22.87 |
| Mar 31, 2015 | 23.64 | 463.73 | 23.15 | 26.24 | 21.62 |
| Apr 1, 2014 | 18.54 | — | 20.18 | 21.79 | 20.15 |
| Apr 2, 2013 | 16.62 | 601.07 | 22.86 | 21.13 | 17.99 |
| Mar 27, 2012 | 20.34 | — | 19.49 | 20.46 | 19.73 |
| Mar 29, 2011 | 14.88 | 129.38 | 18.15 | 17.66 | 14.54 |
| Mar 30, 2010 | 14.74 | 67.02 | 20.76 | 19.70 | 14.57 |
| Mar 31, 2009 | 14.89 | 61.80 | 18.59 | 12.26 | 12.02 |
| Apr 1, 2008 | 15.86 | 39.07 | 11.24 | 12.74 | 18.61 |
| Apr 3, 2007 | 19.84 | 65.85 | 12.59 | 15.42 | 16.30 |
| Apr 12, 2006 | 21.16 | 88.17 | 15.57 | 18.31 | 16.91 |
| Apr 14, 2005 | 24.31 | 45.52 | 16.29 | 19.15 | 17.81 |
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/E, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Ross Stores Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Mar 29, 2022 | 19.46 | 63.32 |
| Mar 30, 2021 | 502.66 | 40.84 |
| Mar 31, 2020 | 18.64 | 49.11 |
| Apr 2, 2019 | 21.75 | 48.49 |
| Apr 3, 2018 | 21.18 | 45.41 |
| Mar 28, 2017 | 23.06 | 60.50 |
| Mar 29, 2016 | 22.84 | 47.75 |
| Mar 31, 2015 | 23.64 | 45.72 |
| Apr 1, 2014 | 18.54 | 38.28 |
| Apr 2, 2013 | 16.62 | 39.66 |
| Mar 27, 2012 | 20.34 | 37.17 |
| Mar 29, 2011 | 14.88 | 26.94 |
| Mar 30, 2010 | 14.74 | 27.21 |
| Mar 31, 2009 | 14.89 | 21.68 |
| Apr 1, 2008 | 15.86 | 14.47 |
| Apr 3, 2007 | 19.84 | 16.25 |
| Apr 12, 2006 | 21.16 | 17.92 |
| Apr 14, 2005 | 24.31 | 18.45 |
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/E, long-term trends, comparison to industry (consumer discretionary)
| Ross Stores Inc. | Consumer Discretionary | |
|---|---|---|
| Mar 29, 2022 | 19.46 | 46.01 |
| Mar 30, 2021 | 502.66 | 39.27 |
| Mar 31, 2020 | 18.64 | 73.74 |
| Apr 2, 2019 | 21.75 | 39.37 |
| Apr 3, 2018 | 21.18 | 33.13 |
| Mar 28, 2017 | 23.06 | 47.03 |
| Mar 29, 2016 | 22.84 | 29.19 |
| Mar 31, 2015 | 23.64 | 24.70 |
| Apr 1, 2014 | 18.54 | 29.48 |
| Apr 2, 2013 | 16.62 | 26.50 |
| Mar 27, 2012 | 20.34 | 20.90 |
| Mar 29, 2011 | 14.88 | 11.38 |
| Mar 30, 2010 | 14.74 | 17.54 |
| Mar 31, 2009 | 14.89 | 18.66 |
| Apr 1, 2008 | 15.86 | 303.41 |
| Apr 3, 2007 | 19.84 | 24.33 |
| Apr 12, 2006 | 21.16 | 117.34 |
| Apr 14, 2005 | 24.31 | 17.54 |
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).