Stock Analysis on Net

Costco Wholesale Corp. (NASDAQ:COST)

$24.99

Price to Earnings (P/E)
since 2005

Microsoft Excel

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Calculation

Costco Wholesale Corp., P/E, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 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), 10-K (reporting date: 2017-09-03), 10-K (reporting date: 2016-08-28), 10-K (reporting date: 2015-08-30), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-09-01), 10-K (reporting date: 2012-09-02), 10-K (reporting date: 2011-08-28), 10-K (reporting date: 2010-08-29), 10-K (reporting date: 2009-08-30), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-09-02), 10-K (reporting date: 2006-09-03), 10-K (reporting date: 2005-08-28).

1 US$

2 Data adjusted for splits and stock dividends.

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


Share Price
The share price demonstrated a generally strong upward trend over the entire period. Starting at $50.06 in 2005, it displayed moderate fluctuations in the initial years, including a slight decline around 2008 coinciding with the global financial crisis. From 2011 onward, the share price consistently increased, reaching $914.8 by 2025. Notably, the growth accelerated markedly from 2018, reflecting heightened investor confidence or improved company performance during this time frame.
Earnings Per Share (EPS)
Earnings per share showed steady improvement throughout the years, starting at $2.25 in 2005 and rising to $18.27 in 2025. Despite a minor dip observed around 2009, EPS generally increased year-over-year, indicating sustained growth in profitability. This growth was particularly pronounced from 2017 forward, aligning with the surge in share price and suggesting enhanced operational efficiency or increased revenue generation capabilities.
Price-to-Earnings (P/E) Ratio
The P/E ratio exhibited some variability, ranging between approximately 19.45 and 54.68 during the period. Early on, it fluctuated modestly with occasional peaks, such as in 2007 and 2009. More recently, from 2015 onward, the ratio tended to trend upwards, peaking significantly at 54.68 in 2024, before slightly easing to 50.06 in 2025. This indicates growing investor willingness to pay a premium for each dollar of earnings, possibly driven by expectations of continued growth or market positioning advantages.
Overall Interpretation
The dataset reveals a company experiencing consistent growth in earnings accompanied by substantial increases in share price, reflecting positive market sentiment. The rising P/E ratio in later years suggests investors have heightened expectations regarding future profitability. The resilience of EPS despite economic downturns and the acceleration in valuation metrics post-2017 indicate strong financial health and investor confidence. The divergence between faster share price growth and EPS expansion may also imply anticipated strategic initiatives or market expansion beyond current earnings figures.

Comparison to Competitors


Comparison to Sector (Consumer Staples Distribution & Retail)

Costco Wholesale Corp., P/E, long-term trends, comparison to sector (consumer staples distribution & retail)

Microsoft Excel

Based on: 10-K (reporting date: 2025-08-31), 10-K (reporting date: 2024-09-01), 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), 10-K (reporting date: 2017-09-03), 10-K (reporting date: 2016-08-28), 10-K (reporting date: 2015-08-30), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-09-01), 10-K (reporting date: 2012-09-02), 10-K (reporting date: 2011-08-28), 10-K (reporting date: 2010-08-29), 10-K (reporting date: 2009-08-30), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-09-02), 10-K (reporting date: 2006-09-03), 10-K (reporting date: 2005-08-28).


Comparison to Industry (Consumer Staples)