COST

Costco Wholesale Corporation

Fundamental data last updated:July 17, 2026

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company profile

SECTOR

Consumer Defensive

industry

Discount Stores

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

09/24/2026

Business Summary

Costco Wholesale Corporation, alongside its group entities, operates membership-based retail warehouses across a broad international scope, spanning the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, South Korea, Australia, Spain, France, Iceland, China, and Taiwan. These outlets provide customers with an extensive array of both well-known branded and proprietary private-label products. Their vast inventory includes household staples, shelf-stable groceries, confectionery, chilled and frozen items, alcoholic beverages, tobacco, and deli selections. Furthermore, the stores stock major appliances, consumer electronics, health and beauty aids, hardware, garden and patio furniture, sporting goods, vehicle tires, toys, seasonal merchandise, office supplies, automotive maintenance products, postage services, event tickets, apparel, small kitchen appliances, home furnishings, domestic textiles, kitchenware, custom-order kiosks, and fine jewelry. Fresh departments offer meat, produce, a service deli, and bakery items. Beyond retail goods, Costco provides in-store amenities such as pharmacies, optical clinics, food courts, hearing aid centers, and tire installation facilities, in addition to managing 636 gas stations. The company also extends its offerings online through business delivery, travel booking, and same-day grocery fulfillment in various countries. As of August 29, 2021, Costco maintained a global network of 815 membership warehouses, with 564 located in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in South Korea, 14 in Taiwan, 12 in Australia, 3 in Spain, and one each in Iceland, France, and China. Digital storefronts facilitate e-commerce operations in the United States, Canada, the United Kingdom, Mexico, South Korea, Taiwan, Japan, and Australia. Founded in 1976, the enterprise was originally known as Costco Companies, Inc. before officially adopting the name Costco Wholesale Corporation in August 1999. Its corporate headquarters are situated in Issaquah, Washington.

 


VALUATION

P/E

47.73

Market Cap ($M USD)

$421.42B

Forward P/E

33.35

PEG

0.77

PRICE TO SALES

1.44

PRICE TO BOOK

12.59

EV / EBITDA

28.38

5-Year Average P/E

Free Cash Flow Yield

2.09%

DCF Value

$323.20

Graham Number

$183.88

Price to FCF

47.86

EV to FCF

46.64

Earnings Yield

2.10%

FCF Yield

2.09%

DIVIDEND

Yield

0.57%

Annual Payout

$5.37

Payout Ratio

26.10%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$19.91

Next Year EPS Growth Estimate

$28.50

Next Year Revenue Growth Estimate

$39.45T

Return on Equity (ROE)

28.27%

FREE CASH FLOW

Operating Margin

3.82%

Debt-to-Equity

0.28

Piotroski F-Score

7

Altman Z-Score

9.11

Return on Invested Capital (ROIC)

25.34%

Current Ratio

1.07

Quick Ratio

0.61

Net Debt to EBITDA

-0.74

Interest Coverage

76.88

Gross Profit margin

12.88%

FCF PER SHARE

$19.84

REVENUE PER SHARE

$661.35

Gainseekers Quantitative Analysis

Summary

Costco’s valuation is a paradox. Despite a DCF value significantly below its snapshot price, the market seems to be pricing in perfection with a sky-high P/E ratio of 46.99. However, the Forward P/E of 32.83 suggests some anticipated earnings growth, supported by a robust Altman Z-score of 9.08, indicating financial stability. The earnings yield of 2.13% is underwhelming, yet the company’s strong ROIC of 25.34% showcases its ability to generate returns efficiently. The market may be overestimating its growth potential, but its financial health remains solid.

AI Exposure / Tech Reliance

In the realm of AI and tech resilience, Costco's position in the consumer defensive sector provides a buffer against rapid technological disruptions. As a discount retailer, its focus on bulk sales and membership models offers stability. However, integrating AI for inventory management and customer personalization could enhance its operational efficiency.

The Bull Case

For the value or GARP investor, Costco's appeal lies in its impressive ROIC of 25.34%, indicating strong capital efficiency. The Piotroski F-Score of 7 suggests solid financial health, while a modest FCF yield of 2.12% reflects its ability to generate cash. Despite a low operating margin of 3.82%, Costco's pricing power and scale allow it to maintain profitability. These metrics paint a picture of a company that, while expensive, offers a reliable growth trajectory.

The Bear Case

The bear case for Costco is clear: its valuation multiples are stretched. A Price/Book ratio of 12.39 and Price/Sales of 1.41 signal a premium valuation that may not be justified by its cash flow metrics. The Price to FCF ratio of 47.11 is particularly concerning, suggesting the stock is priced for perfection. Additionally, trading close to its 52-week high, it appears technically overextended, posing a risk for potential investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$1,110.75

Institutional Ownership %

1-Year Beta

0.87

Insider Buying % (6 Mo)

Distance to 52-Week High

15.39%

Distance to 52-Week Low

11.17%

EARNINGS SURPRISE %

-0.20%

50-DAY SMA

$991.25

200-DAY SMA

$957.21

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.