Sep. 3 at 11:03 AM
$ROST
Ross Stores is undeniably a well-run company with a proven business model that's survived multiple economic cycles. Their operational metrics are solid, their market position is strong, and their management team knows how to execute.
However, the current valuation appears to price in a lot of optimism. At recent prices significantly above the DCF fair value estimate, investors are paying a premium for quality and defensive characteristics. This isn't necessarily wrong – good businesses often trade at premiums – but it does reduce the margin of safety.
https://stratafinance.beehiiv.com/p/ross
