Burlington Stores Inc (BURL) is overvalued and Ross Stores Inc (ROST) is overvalued.
Both trade above our estimate of their intrinsic value. BURL is the closer of the two: -40%, against -73% for ROST.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.9% (average of 3 methods) values the shares at $183.28; the price of $256.85 is 40% above that value, and 74% of that value comes from beyond year five.
Leak Score 14/100 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 | BURL | ROST |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $256.85 | $232.51 |
| Intrinsic value | $183.28 | $134.75 |
| Margin of safety | -40% | -73% |
| Leak Score | 14/100 (3/12) | 76/100 (9/12) |
| Market cap | $16.1B | $74.3B |
| Revenue growth, 5 years | 14.9% | 12.7% |
| Operating margin | 8.2% | 12.7% |
| Net margin | 5.8% | 10.8% |
| Return on equity | 41.4% | 42.6% |
| Debt to equity | 2.95 | 0.70 |
| P/E | 23.0x | 28.1x |
| Forward P/E | 18.8x | 25.7x |
| P/B | 8.1x | 11.0x |
| Dividend yield | — | 0.8% |