Costco Wholesale Corp., FCFE calculation

US$ in millions

12 months ended:	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021	Aug 30, 2020	Sep 1, 2019	Sep 2, 2018
Net income attributable to Costco	6,292)	5,844)	5,007)	4,002)	3,659)	3,134)
Net income attributable to noncontrolling interests	—)	71)	72)	57)	45)	45)
Net noncash charges	3,758)	3,040)	2,876)	2,604)	2,243)	1,926)
Changes in operating assets and liabilities	1,018)	(1,563)	1,003)	2,198)	409)	669)
Net cash provided by operating activities	11,068)	7,392)	8,958)	8,861)	6,356)	5,774)
Additions to property and equipment	(4,323)	(3,891)	(3,588)	(2,810)	(2,998)	(2,969)
Repayments of short-term borrowings	(935)	(6)	—)	—)	—)	—)
Proceeds from short-term borrowings	917)	53)	41)	—)	—)	—)
Proceeds from issuance of long-term debt	—)	—)	—)	3,992)	298)	—)
Repayments of long-term debt	(75)	(800)	(94)	(3,200)	(89)	(86)
Financing lease payments	(291)	(176)	(67)	—)	—)	—)
Free cash flow to equity (FCFE)	6,361)	2,572)	5,250)	6,843)	3,567)	2,719)

Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Costco Wholesale Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Costco Wholesale Corp. FCFE decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Costco Wholesale Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	443,504,036
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	6,361)
FCFE per share	14.34
Current share price (P)	729.18
Valuation Ratio
P/FCFE	50.84
Benchmarks
P/FCFE, Competitors¹
Target Corp.	20.60
Walmart Inc.	29.15
P/FCFE, Sector
Consumer Staples Distribution & Retail	40.57
P/FCFE, Industry
Consumer Staples	27.28

Based on: 10-K (reporting date: 2023-09-03).

¹ Click competitor name to see calculations.

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

Costco Wholesale Corp., historical P/FCFE calculation, comparison to benchmarks

	Sep 3, 2023	Aug 28, 2022	Aug 29, 2021	Aug 30, 2020	Sep 1, 2019	Sep 2, 2018
No. shares of common stock outstanding¹	442,740,572	442,604,145	441,823,811	441,228,027	439,656,950	438,208,376
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	6,361)	2,572)	5,250)	6,843)	3,567)	2,719)
FCFE per share³	14.37	5.81	11.88	15.51	8.11	6.20
Share price^1, 4	565.52	480.32	449.34	363.02	297.60	218.19
Valuation Ratio
P/FCFE⁵	39.36	82.66	37.82	23.41	36.68	35.16
Benchmarks
P/FCFE, Competitors⁶
Target Corp.	78.41	16.84	11.15	13.90	17.63	—
Walmart Inc.	25.97	122.02	18.26	23.39	9.30	—
P/FCFE, Sector
Consumer Staples Distribution & Retail	32.19	60.47	19.63	21.92	12.56	—
P/FCFE, Industry
Consumer Staples	24.38	31.85	24.14	17.57	18.66	—

Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 6,361,000,000 ÷ 442,740,572 = 14.37

⁴ Closing price as at the filing date of Costco Wholesale Corp. Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 565.52 ÷ 14.37 = 39.36

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Costco Wholesale Corp. P/FCFE ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Costco Wholesale Corp. (NASDAQ:COST)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical