Abercrombie & Fitch Co (ANF) is undervalued and Ross Stores Inc (ROST) is overvalued.
Against our estimates of intrinsic value, ANF trades at the wider discount: a margin of safety of +43%, against -73% for ROST.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.1% (average of 3 methods) values the shares at $238.74; the price of $136.21 is 43% below that value, and 76% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
Discounting its cash flows at 9.4% (average of 3 methods) values the shares at $134.75; the price of $232.51 is 73% above that value, and 75% of that value comes from beyond year five.
Leak Score 76/100 on 9 of 12 signals
| Metric | ANF | ROST |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $136.21 | $232.51 |
| Intrinsic value | $238.74 | $134.75 |
| Margin of safety | +43% | -73% |
| Leak Score | 100/100 (3/12) | 76/100 (9/12) |
| Market cap | $5.8B | $74.3B |
| Revenue growth, 5 years | 11.0% | 12.7% |
| Operating margin | 13.9% | 12.7% |
| Net margin | 10.0% | 10.8% |
| Return on equity | 40.5% | 42.6% |
| Debt to equity | 0.95 | 0.70 |
| P/E | 11.7x | 28.1x |
| Forward P/E | 10.5x | 25.7x |
| P/B | 4.3x | 11.0x |
| Dividend yield | — | 0.8% |