Ross Stores Inc (ROST) is overvalued and Urban Outfitters Inc (URBN) is undervalued.
Against our estimates of intrinsic value, URBN trades at the wider discount: a margin of safety of +38%, against -73% for ROST.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 9.9% (average of 3 methods) values the shares at $120.84; the price of $75.02 is 38% below that value, and 73% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
| Metric | ROST | URBN |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $232.51 | $75.02 |
| Intrinsic value | $134.75 | $120.84 |
| Margin of safety | -73% | +38% |
| Leak Score | 76/100 (9/12) | 100/100 (3/12) |
| Market cap | $74.3B | $6.4B |
| Revenue growth, 5 years | 12.7% | 12.3% |
| Operating margin | 12.7% | 11.3% |
| Net margin | 10.8% | 8.8% |
| Return on equity | 42.6% | 20.9% |
| Debt to equity | 0.70 | 0.43 |
| P/E | 28.1x | 11.7x |
| Forward P/E | 25.7x | 10.9x |
| P/B | 11.0x | 2.3x |
| Dividend yield | 0.8% | — |