Financial statements analysis and common stock valuation

Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Analysis of Long-term (Investment) Activity Ratios
Quarterly Data

Measures how efficiently Costco Wholesale Corp. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover

Price to Earnings (P/E)
since 2005

The P/E ratio tells analyst how much an investor in Costco Wholesale Corp.’s common stock pays per dollar of current earnings.

• Calculation
• Comparison to Competitors
• Comparison to General Retailers Sector
• Comparison to Consumer Services Industry

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Costco Wholesale Corp.’s common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Balance Sheet: Assets

The assets reports major classes and amounts of resources owned or controlled by Costco Wholesale Corp..

Net Profit Margin
since 2005

Costco Wholesale Corp.’s indicator of profitability, calculated as net income divided by revenue.

• Calculation
• Comparison to Competitors
• Comparison to General Retailers Sector
• Comparison to Consumer Services Industry