Ross Stores Inc (ROST) is overvalued and Victoria's Secret & Co (VSXY) is overvalued.
Both trade above our estimate of their intrinsic value. VSXY is the closer of the two: -45%, 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 11.1% (average of 3 methods) values the shares at $57.96; the price of $83.82 is 45% above that value, and 69% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
| Metric | ROST | VSXY |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $232.51 | $83.82 |
| Intrinsic value | $134.75 | $57.96 |
| Margin of safety | -73% | -45% |
| Leak Score | 76/100 (9/12) | 14/100 (3/12) |
| Market cap | $74.3B | $6.7B |
| Revenue growth, 5 years | 12.7% | 3.9% |
| Operating margin | 12.7% | 9.8% |
| Net margin | 10.8% | 5.5% |
| Return on equity | 42.6% | 45.2% |
| Debt to equity | 0.70 | 2.93 |
| P/E | 28.1x | 18.9x |
| Forward P/E | 25.7x | 14.9x |
| P/B | 11.0x | 6.8x |
| Dividend yield | 0.8% | — |