ROST EV/EBITDA Analysis

EV/EBITDA measures a company's valuation relative to its cash earnings before interest, taxes, depreciation, and amortization; at 23.8x, investors are paying $23.80 for each dollar of that earnings measure.

Compared to sector peers, this is well above the sector median of 13.6x, placing ROST in the 82nd percentile — meaning only 18% of peers trade at a higher multiple. The metric is increasing: the most recent reading rose +0.8% quarter-over-quarter to 23.8x from 23.6x, and the four-quarter trend (23.8x → 23.6x → 22.5x → 20.1x) shows a steady upward path, though year-over-year change is not available. The combination of a high level and rising trend suggests investors are paying more for the same cash generation, which raises the risk that future growth must justify the premium. This valuation signal does not contradict the overall NEUTRAL verdict — it supports it by highlighting elevated cost of entry without confirming a fundamental catalyst.

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