Price to Sales (P/S)
since 2005
Calculation
Ross Stores Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Sales1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 29, 2022 | 1.77 | = | 95.55 | ÷ | 53.91 | 53.91 | = | 18,916,244 | ÷ | 350,892,474 | |
| Mar 30, 2021 | 3.42 | = | 120.38 | ÷ | 35.15 | 35.15 | = | 12,531,565 | ÷ | 356,523,349 | |
| Mar 31, 2020 | 1.93 | = | 86.97 | ÷ | 45.07 | 45.07 | = | 16,039,073 | ÷ | 355,896,821 | |
| Apr 2, 2019 | 2.30 | = | 93.76 | ÷ | 40.69 | 40.69 | = | 14,983,541 | ÷ | 368,247,009 | |
| Apr 3, 2018 | 2.04 | = | 76.20 | ÷ | 37.32 | 37.32 | = | 14,134,732 | ÷ | 378,713,373 | |
| Mar 28, 2017 | 2.00 | = | 65.77 | ÷ | 32.83 | 32.83 | = | 12,866,757 | ÷ | 391,895,145 | |
| Mar 29, 2016 | 1.95 | = | 58.09 | ÷ | 29.75 | 29.75 | = | 11,939,999 | ÷ | 401,287,592 | |
| Mar 31, 2015 | 1.98 | = | 52.68 | ÷ | 26.61 | 26.61 | = | 11,041,677 | ÷ | 414,978,552 | |
| Apr 1, 2014 | 1.52 | = | 36.45 | ÷ | 24.02 | 24.02 | = | 10,230,353 | ÷ | 425,938,590 | |
| Apr 2, 2013 | 1.34 | = | 29.71 | ÷ | 22.09 | 22.09 | = | 9,721,065 | ÷ | 440,037,780 | |
| Mar 27, 2012 | 1.55 | = | 29.50 | ÷ | 19.00 | 19.00 | = | 8,608,291 | ÷ | 453,040,332 | |
| Mar 29, 2011 | 1.05 | = | 17.55 | ÷ | 16.72 | 16.72 | = | 7,866,100 | ÷ | 470,399,976 | |
| Mar 30, 2010 | 0.91 | = | 13.32 | ÷ | 14.66 | 14.66 | = | 7,184,213 | ÷ | 490,119,460 | |
| Mar 31, 2009 | 0.70 | = | 8.97 | ÷ | 12.79 | 12.79 | = | 6,486,139 | ÷ | 506,992,348 | |
| Apr 1, 2008 | 0.69 | = | 7.77 | ÷ | 11.22 | 11.22 | = | 5,975,212 | ÷ | 532,729,332 | |
| Apr 3, 2007 | 0.86 | = | 8.62 | ÷ | 10.02 | 10.02 | = | 5,570,210 | ÷ | 556,092,672 | |
| Apr 12, 2006 | 0.85 | = | 7.36 | ÷ | 8.61 | 8.61 | = | 4,944,179 | ÷ | 573,994,456 | |
| Apr 14, 2005 | 0.97 | = | 6.99 | ÷ | 7.18 | 7.18 | = | 4,239,990 | ÷ | 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 Price to Sales (P/S) ratio indicates a long-term expansion in market valuation relative to revenue generation. The trend reflects a transition from a period of conservative valuation in the mid-2000s to a more premium valuation regime over the following decade, characterized by a general increase in the multiple the market is willing to pay for each dollar of sales.
- Valuation Phases
- From 2005 to 2009, the P/S ratio remained consistently below 1.0, reaching a floor of 0.69 in 2008. A structural shift is observed starting in 2010, with the ratio surpassing 1.0 in 2011 and maintaining an upward trajectory to reach 2.30 by 2019. This suggests an increasing market premium attributed to the company's operational performance during this period.
- Revenue and Equity Growth Correlation
- Sales per share exhibited consistent growth, rising from $7.18 in 2005 to $40.69 in 2019. While sales grew steadily, the share price increased at a more rapid pace, moving from $6.99 to $93.76 in the same timeframe. This disproportionate growth between equity price and sales volume drove the steady expansion of the P/S ratio.
- Recent Volatility and Correction
- A significant spike in the P/S ratio occurred in 2021, peaking at 3.42. This peak was the result of a convergence of two factors: a share price high of $120.38 and a sharp contraction in sales per share to $35.15. A subsequent correction is evident in 2022, where the P/S ratio fell to 1.77, driven by a substantial recovery in sales per share to $53.91 and a moderation of the share price to $95.55.
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Comparison to Competitors
Ross Stores Inc., P/S, 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 | 1.77 | 2.06 | 2.17 | 1.56 | 1.50 |
| Mar 30, 2021 | 3.42 | 3.41 | 2.39 | 1.46 | 2.48 |
| Mar 31, 2020 | 1.93 | 4.32 | 1.77 | 0.71 | 1.34 |
| Apr 2, 2019 | 2.30 | 3.56 | 1.94 | 1.23 | 1.66 |
| Apr 3, 2018 | 2.04 | 3.43 | 2.01 | 1.02 | 1.47 |
| Mar 28, 2017 | 2.00 | 3.89 | 1.88 | 1.08 | 1.53 |
| Mar 29, 2016 | 1.95 | 2.90 | 1.85 | 1.15 | 1.68 |
| Mar 31, 2015 | 1.98 | 2.58 | 1.77 | 1.26 | 1.65 |
| Apr 1, 2014 | 1.52 | 1.85 | 1.38 | 0.93 | 1.57 |
| Apr 2, 2013 | 1.34 | 2.21 | 1.39 | 0.82 | 1.33 |
| Mar 27, 2012 | 1.55 | 2.03 | 1.08 | 0.75 | 1.27 |
| Mar 29, 2011 | 1.05 | 1.70 | 0.89 | 0.73 | 0.89 |
| Mar 30, 2010 | 0.91 | 2.26 | 0.83 | 0.74 | 0.87 |
| Mar 31, 2009 | 0.70 | 2.27 | 0.59 | 0.56 | 0.56 |
| Apr 1, 2008 | 0.69 | 1.31 | 0.64 | 0.74 | 0.77 |
| Apr 3, 2007 | 0.86 | 2.11 | 0.80 | 1.02 | 0.69 |
| Apr 12, 2006 | 0.85 | 1.56 | 1.11 | 1.17 | 0.73 |
| Apr 14, 2005 | 0.97 | 1.93 | 1.11 | 1.14 | 0.79 |
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/S, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Ross Stores Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Mar 29, 2022 | 1.77 | 1.99 |
| Mar 30, 2021 | 3.42 | 2.94 |
| Mar 31, 2020 | 1.93 | 3.23 |
| Apr 2, 2019 | 2.30 | 2.73 |
| Apr 3, 2018 | 2.04 | 2.56 |
| Mar 28, 2017 | 2.00 | 2.67 |
| Mar 29, 2016 | 1.95 | 2.16 |
| Mar 31, 2015 | 1.98 | 1.97 |
| Apr 1, 2014 | 1.52 | 1.47 |
| Apr 2, 2013 | 1.34 | 1.52 |
| Mar 27, 2012 | 1.55 | 1.30 |
| Mar 29, 2011 | 1.05 | 1.06 |
| Mar 30, 2010 | 0.91 | 1.10 |
| Mar 31, 2009 | 0.70 | 0.83 |
| Apr 1, 2008 | 0.69 | 0.76 |
| Apr 3, 2007 | 0.86 | 0.96 |
| Apr 12, 2006 | 0.85 | 1.12 |
| Apr 14, 2005 | 0.97 | 1.14 |
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/S, long-term trends, comparison to industry (consumer discretionary)
| Ross Stores Inc. | Consumer Discretionary | |
|---|---|---|
| Mar 29, 2022 | 1.77 | 2.27 |
| Mar 30, 2021 | 3.42 | 3.58 |
| Mar 31, 2020 | 1.93 | 3.81 |
| Apr 2, 2019 | 2.30 | 2.33 |
| Apr 3, 2018 | 2.04 | 2.05 |
| Mar 28, 2017 | 2.00 | 2.06 |
| Mar 29, 2016 | 1.95 | 1.68 |
| Mar 31, 2015 | 1.98 | 1.57 |
| Apr 1, 2014 | 1.52 | 1.32 |
| Apr 2, 2013 | 1.34 | 1.33 |
| Mar 27, 2012 | 1.55 | 1.06 |
| Mar 29, 2011 | 1.05 | 0.97 |
| Mar 30, 2010 | 0.91 | 0.96 |
| Mar 31, 2009 | 0.70 | 0.92 |
| Apr 1, 2008 | 0.69 | 0.66 |
| Apr 3, 2007 | 0.86 | 0.79 |
| Apr 12, 2006 | 0.85 | 0.86 |
| Apr 14, 2005 | 0.97 | 0.79 |
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).