Ross Stores Inc., FCFF calculation

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Net earnings	1,722,589)	85,382)	1,660,928)	1,587,457)	1,362,753)	1,117,654)
Net noncash charges	510,656)	677,954)	478,339)	457,719)	359,349)	368,366)
Change in assets and liabilities	(494,396)	1,482,597)	32,279)	21,501)	(40,824)	72,831)
Net cash provided by operating activities	1,738,849)	2,245,933)	2,171,546)	2,066,677)	1,681,278)	1,558,851)
Interest paid, net of tax¹	64,345)	58,194)	9,727)	14,013)	12,130)	11,406)
Capitalized interest, net of tax²	11,045)	9,838)	3,349)	1,933)	476)	16)
Additions to property and equipment	(557,840)	(405,433)	(555,483)	(413,898)	(371,423)	(297,880)
Proceeds from sale of property and equipment	—)	—)	—)	—)	15,981)	—)
Free cash flow to the firm (FCFF)	1,256,399)	1,908,532)	1,629,140)	1,668,725)	1,338,442)	1,272,394)

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Ross Stores Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Ross Stores Inc. FCFF increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Ross Stores Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Effective Income Tax Rate (EITR)
EITR¹	23.70%	19.70%	23.30%	22.60%	33.00%	37.00%
Interest Paid, Net of Tax
Interest paid, before tax	84,331)	72,471)	12,682)	18,105)	18,105)	18,105)
Less: Interest paid, tax²	19,986)	14,277)	2,955)	4,092)	5,975)	6,699)
Interest paid, net of tax	64,345)	58,194)	9,727)	14,013)	12,130)	11,406)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	14,476)	12,251)	4,367)	2,497)	710)	26)
Less: Capitalized interest, tax³	3,431)	2,413)	1,018)	564)	234)	10)
Capitalized interest, net of tax	11,045)	9,838)	3,349)	1,933)	476)	16)

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

¹ See details »

² 2022 Calculation
Interest paid, tax = Interest paid × EITR
= 84,331 × 23.70% = 19,986

³ 2022 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 14,476 × 23.70% = 3,431

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Ross Stores Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	37,256,600)
Free cash flow to the firm (FCFF)	1,256,399)
Valuation Ratio
EV/FCFF	29.65
Benchmarks
EV/FCFF, Competitors¹
Amazon.com Inc.	54.93
Home Depot Inc.	23.09
Lowe’s Cos. Inc.	25.23
TJX Cos. Inc.	30.09
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail	190.43
EV/FCFF, Industry
Consumer Discretionary	76.88

Based on: 10-K (reporting date: 2022-01-29).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Ross Stores Inc., historical EV/FCFF calculation, comparison to benchmarks

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	31,057,736)	40,612,073)	29,914,033)	33,426,368)	27,964,120)	25,059,838)
Free cash flow to the firm (FCFF)²	1,256,399)	1,908,532)	1,629,140)	1,668,725)	1,338,442)	1,272,394)
Valuation Ratio
EV/FCFF³	24.72	21.28	18.36	20.03	20.89	19.70
Benchmarks
EV/FCFF, Competitors⁴
Amazon.com Inc.	—	—	78.83	74.39	—	—
Home Depot Inc.	25.12	20.22	19.11	21.30	—	—
Lowe’s Cos. Inc.	19.56	14.88	20.95	18.88	—	—
TJX Cos. Inc.	33.03	18.30	19.08	21.16	—	—
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail	111.04	130.00	51.35	42.44	—	—
EV/FCFF, Industry
Consumer Discretionary	50.20	59.78	45.72	30.57	—	—

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

¹ See details »

² See details »

³ 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 31,057,736 ÷ 1,256,399 = 24.72

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Ross Stores Inc. EV/FCFF ratio increased from 2020 to 2021 and from 2021 to 2022.

Ross Stores Inc. (NASDAQ:ROST)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical