Ross Stores Inc., FCFE calculation

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Net earnings	1,722,589)	85,382)	1,660,928)	1,587,457)	1,362,753)	1,117,654)
Net noncash charges	510,656)	677,954)	478,339)	457,719)	359,349)	368,366)
Change in assets and liabilities	(494,396)	1,482,597)	32,279)	21,501)	(40,824)	72,831)
Net cash provided by operating activities	1,738,849)	2,245,933)	2,171,546)	2,066,677)	1,681,278)	1,558,851)
Additions to property and equipment	(557,840)	(405,433)	(555,483)	(413,898)	(371,423)	(297,880)
Proceeds from sale of property and equipment	—)	—)	—)	—)	15,981)	—)
Net proceeds from issuance of short-term debt	—)	805,601)	—)	—)	—)	—)
Payments of short-term debt	—)	(805,601)	—)	—)	—)	—)
Net proceeds from issuance of long-term debt	—)	2,965,115)	—)	—)	—)	—)
Payments of long-term debt	(65,000)	(775,009)	—)	(85,000)	—)	—)
Payments of debt extinguishment and debt issuance costs	—)	(232,688)	—)	—)	—)	—)
Free cash flow to equity (FCFE)	1,116,009)	3,797,918)	1,616,063)	1,567,779)	1,325,836)	1,260,971)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Ross Stores Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Ross Stores Inc. FCFE increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Ross Stores Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	344,371,009
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	1,116,009)
FCFE per share	3.24
Current share price (P)	115.36
Valuation Ratio
P/FCFE	35.60
Benchmarks
P/FCFE, Competitors¹
Amazon.com Inc.	90.65
Home Depot Inc.	17.81
Lowe’s Cos. Inc.	16.30
TJX Cos. Inc.	28.04
P/FCFE, Sector
Consumer Discretionary Distribution & Retail	80.35
P/FCFE, Industry
Consumer Discretionary	50.12

Based on: 10-K (reporting date: 2022-01-29).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Ross Stores Inc., historical P/FCFE calculation, comparison to benchmarks

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
No. shares of common stock outstanding¹	350,892,474	356,523,349	355,896,821	368,247,009	378,713,373	391,895,145
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	1,116,009)	3,797,918)	1,616,063)	1,567,779)	1,325,836)	1,260,971)
FCFE per share³	3.18	10.65	4.54	4.26	3.50	3.22
Share price^1, 4	95.55	120.38	86.97	93.76	76.20	65.77
Valuation Ratio
P/FCFE⁵	30.04	11.30	19.15	22.02	21.77	20.44
Benchmarks
P/FCFE, Competitors⁶
Amazon.com Inc.	240.95	—	55.66	63.35	—	—
Home Depot Inc.	19.87	15.41	14.99	16.61	—	—
Lowe’s Cos. Inc.	13.55	12.28	8.69	20.45	—	—
TJX Cos. Inc.	—	10.55	19.71	21.79	—	—
P/FCFE, Sector
Consumer Discretionary Distribution & Retail	51.89	59.10	38.09	38.19	—	—
P/FCFE, Industry
Consumer Discretionary	38.31	86.53	30.52	28.87	—	—

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).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,116,009,000 ÷ 350,892,474 = 3.18

⁴ Closing price as at the filing date of Ross Stores Inc. Annual Report.

⁵ 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 95.55 ÷ 3.18 = 30.04

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Ross Stores Inc. P/FCFE ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Ross Stores Inc. (NASDAQ:ROST)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical