NASDAQ
COST
Last Price
US $982.35
KEY FIGURES
MKT CAP
$435.7B
EPS
TTM
$19.91
PEG
TTM
3.89x
P/E
TTM
49.34x
P/S
TTM
1.58x
YIELD
0.55%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
28.27%
Return on equity
ROIC: 19.01%
Valuation History
49.3X
Price to Earnings
EV/EBITDA: 29.4X
Cash flow
Profit margin
10.54%
(FY vs FY)
EBITDA Y/Y
13.30%
(FY vs FY)
Cash flow Y/Y
5.31%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $982.35
-72.28%
Default assumptions
EBITDA Multiple
Fair Value
Market $982.35
-77.11%
Default assumptions
EARNINGS FV (GRAHAM)
Fair Value
Market $982.35
-60.55%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Costco Wholesale Corporation cash flow to debt ratio of 163.16% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
Costco Wholesale Corporation's free cash flow has increased 18.22% from $6.63G last year to $7.84G, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
Costco Wholesale Corporation's debt to equity ratio is 0.24, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
Costco Wholesale Corporation's debt has decreased relative to shareholder equity from 0.35 last year to 0.24 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Costco Wholesale Corporation has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Costco Wholesale Corporation's interest coverage ratio of 76.88 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Costco Wholesale Corporation's profit margin has increased (3.98%) in the last year from 2.90% to 3.01%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Costco Wholesale Corporation's short-term assets of $38.38G exceed its short-term liabilities of $37.11G
Increasing perfomance - ROA.
Costco Wholesale Corporation's return on assets of 10.23% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing perfomance - Absolute return on equity.
Costco Wholesale Corporation's return on equity of 28.27%, is higher than 15.00%, indicating good performance
Increasing perfomance - Earnings quality.
Costco Wholesale Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing perfomance - Earnings stability.
Costco Wholesale Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing perfomance - Free cash flow.
Costco Wholesale Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Decreasing perfomance - FCF yield.
Costco Wholesale Corporation has a free cash flow yield of 1.81%, which is below the 2.00% threshold, indicating limited cash return relative to market value
Increasing perfomance - Healthy earnings growth.
Costco Wholesale Corporation's yearly earnings has increased 9.94% since last year from $7.37G to $8.10G, signaling increasing performance
Increasing perfomance - Healthy revenue growth.
Costco Wholesale Corporation's yearly revenue has increased 8.17% since last year from $254.45G to $275.24G, signaling increasing performance
Increasing perfomance - ROIC.
ROIC 19.01% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing perfomance - 3-year revenue CAGR.
Costco Wholesale Corporation's 3-year revenue CAGR of 6.64% is positive, indicating growing revenue over the past 3 years
Increasing perfomance - Revenue consistency.
Costco Wholesale Corporation had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing perfomance - ROE consistency.
Costco Wholesale Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Costco Wholesale Corporation is overvalued relative to its fair value price of 272.27 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Costco Wholesale Corporation has an earnings yield of 2.04%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Costco Wholesale Corporation is overvalued relative to its fair value price of 224.90 based on EBITDA multiple model
Overvalued - EV/EBITDA.
Costco Wholesale Corporation has an EV/EBITDA ratio of 29.13x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
Overvalued - Earnings Fair Value vs Stock Price.
Costco Wholesale Corporation is overvalued relative to its fair value price of 387.52 based on Earnings Fair Value model
Overvalued - PEG ratio value.
Costco Wholesale Corporation has a PEG-ratio over 1 which is considered overvalued
Overvalued - P/B ratio.
Costco Wholesale Corporation has a price-to-book ratio of 12.91x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Costco Wholesale Corporation has a price-to-sales ratio of 1.47x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue