Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Costco Wholesale Corp., current price multiples
| Costco Wholesale Corp. | Target Corp. | Walmart Inc. | Consumer Staples Distribution & Retail | Consumer Staples | ||||
|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||
| Current share price (P) | $729.18 | |||||||
| No. shares of common stock outstanding | 443,504,036 | |||||||
| Growth rate (g) | 18.62% | |||||||
| Earnings per share (EPS) | $14.19 | |||||||
| Next year expected EPS | $16.83 | |||||||
| Operating profit per share | $18.30 | |||||||
| Sales per share | $535.98 | |||||||
| Book value per share (BVPS) | $56.50 | |||||||
| Valuation Ratios (Price Multiples) | ||||||||
| Price to earnings (P/E) | 51.40 | 18.38 | 31.25 | 42.61 | 28.56 | |||
| Price to next year expected earnings | 43.33 | 15.79 | 28.70 | 38.77 | 26.11 | |||
| Price-earnings-growth (PEG) | 2.76 | 1.12 | 3.51 | 4.31 | 3.05 | |||
| Price to operating profit (P/OP) | 39.86 | 13.33 | 17.95 | 27.30 | 21.37 | |||
| Price to sales (P/S) | 1.36 | 0.72 | 0.75 | 0.93 | 1.58 | |||
| Price to book value (P/BV) | 12.91 | 5.66 | 5.78 | 7.83 | 8.48 | |||
Based on: 10-K (reporting date: 2023-09-03).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Costco Wholesale Corp., historical price multiples
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).
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Costco Wholesale Corp. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Costco Wholesale Corp. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Costco Wholesale Corp. P/S ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Costco Wholesale Corp. P/BV ratio decreased from 2021 to 2022 and from 2022 to 2023. |
Price to Earnings (P/E)
Costco Wholesale Corp., historical P/E 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$) | |||||||
| Net income attributable to Costco (in millions) | 6,292) | 5,844) | 5,007) | 4,002) | 3,659) | 3,134) | |
| Earnings per share (EPS)2 | 14.21 | 13.20 | 11.33 | 9.07 | 8.32 | 7.15 | |
| Share price1, 3 | 565.52 | 480.32 | 449.34 | 363.02 | 297.60 | 218.19 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 39.79 | 36.38 | 39.65 | 40.02 | 35.76 | 30.51 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Target Corp. | 27.08 | 14.38 | 20.39 | 16.12 | 13.56 | — | |
| Walmart Inc. | 32.17 | 29.27 | 27.47 | 21.69 | 41.79 | — | |
| P/E Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 33.80 | 26.93 | 28.78 | 24.18 | 33.88 | — | |
| P/E Ratio, Industry | |||||||
| Consumer Staples | 25.52 | 25.47 | 27.69 | 24.71 | 37.90 | — | |
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 2023 Calculation
EPS = Net income attributable to Costco ÷ No. shares of common stock outstanding
= 6,292,000,000 ÷ 442,740,572 = 14.21
3 Closing price as at the filing date of Costco Wholesale Corp. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 565.52 ÷ 14.21 = 39.79
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Costco Wholesale Corp. P/E ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Price to Operating Profit (P/OP)
Costco Wholesale Corp., historical P/OP 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$) | |||||||
| Operating income (in millions) | 8,114) | 7,793) | 6,708) | 5,435) | 4,737) | 4,480) | |
| Operating profit per share2 | 18.33 | 17.61 | 15.18 | 12.32 | 10.77 | 10.22 | |
| Share price1, 3 | 565.52 | 480.32 | 449.34 | 363.02 | 297.60 | 218.19 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 30.86 | 27.28 | 29.60 | 29.47 | 27.62 | 21.34 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Target Corp. | 19.56 | 11.17 | 13.62 | 11.35 | 9.69 | — | |
| Walmart Inc. | 18.40 | 15.43 | 16.46 | 15.69 | 12.70 | — | |
| P/OP Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 21.66 | 16.70 | 18.40 | 17.48 | 14.59 | — | |
| P/OP Ratio, Industry | |||||||
| Consumer Staples | 19.10 | 17.57 | 18.49 | 17.82 | 19.11 | — | |
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 2023 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 8,114,000,000 ÷ 442,740,572 = 18.33
3 Closing price as at the filing date of Costco Wholesale Corp. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 565.52 ÷ 18.33 = 30.86
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Costco Wholesale Corp. P/OP ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Price to Sales (P/S)
Costco Wholesale Corp., historical P/S 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$) | |||||||
| Net sales (in millions) | 237,710) | 222,730) | 192,052) | 163,220) | 149,351) | 138,434) | |
| Sales per share2 | 536.91 | 503.23 | 434.68 | 369.92 | 339.70 | 315.91 | |
| Share price1, 3 | 565.52 | 480.32 | 449.34 | 363.02 | 297.60 | 218.19 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 1.05 | 0.95 | 1.03 | 0.98 | 0.88 | 0.69 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Target Corp. | 0.70 | 0.95 | 0.96 | 0.69 | 0.53 | — | |
| Walmart Inc. | 0.62 | 0.70 | 0.67 | 0.62 | 0.55 | — | |
| P/S Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.74 | 0.80 | 0.78 | 0.70 | 0.61 | — | |
| P/S Ratio, Industry | |||||||
| Consumer Staples | 1.41 | 1.49 | 1.55 | 1.45 | 1.41 | — | |
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 2023 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 237,710,000,000 ÷ 442,740,572 = 536.91
3 Closing price as at the filing date of Costco Wholesale Corp. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 565.52 ÷ 536.91 = 1.05
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Costco Wholesale Corp. P/S ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Price to Book Value (P/BV)
Costco Wholesale Corp., historical P/BV 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$) | |||||||
| Total Costco stockholders’ equity (in millions) | 25,058) | 20,642) | 17,564) | 18,284) | 15,243) | 12,799) | |
| Book value per share (BVPS)2 | 56.60 | 46.64 | 39.75 | 41.44 | 34.67 | 29.21 | |
| Share price1, 3 | 565.52 | 480.32 | 449.34 | 363.02 | 297.60 | 218.19 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 9.99 | 10.30 | 11.30 | 8.76 | 8.58 | 7.47 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Target Corp. | 6.70 | 7.79 | 6.17 | 4.47 | 3.52 | — | |
| Walmart Inc. | 4.90 | 4.81 | 4.59 | 4.32 | 3.85 | — | |
| P/BV Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 6.21 | 6.11 | 5.83 | 5.11 | 4.54 | — | |
| P/BV Ratio, Industry | |||||||
| Consumer Staples | 7.58 | 7.60 | 7.52 | 6.66 | 6.34 | — | |
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 2023 Calculation
BVPS = Total Costco stockholders’ equity ÷ No. shares of common stock outstanding
= 25,058,000,000 ÷ 442,740,572 = 56.60
3 Closing price as at the filing date of Costco Wholesale Corp. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 565.52 ÷ 56.60 = 9.99
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Costco Wholesale Corp. P/BV ratio decreased from 2021 to 2022 and from 2022 to 2023. |