ROSTNEUTRAL

ROST EV/EBITDA Analysis

19.7x

Updated 198h ago·SEC filings & market data

Key Takeaway

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.

Sector Performance

73th percentile

ROST

19.7x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

23.1x(Aug 2026)

↑ Improving

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Deep Analysis

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.

Frequently Asked Questions

What does the EV/EBITDA tell investors about ROST?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are ROST's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.