Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Costco Wholesale Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2026-08-30), 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).
A consistent upward trajectory is observed across all reported profitability metrics from August 2021 through August 2026. The financial performance demonstrates steady year-over-year expansion, reflecting a sustained increase in operational capacity and earnings power.
- EBITDA Growth Trends
- Earnings before interest, tax, depreciation and amortization (EBITDA) exhibited strong and continuous growth, rising from 8,632 million US$ in 2021 to 15,070 million US$ by 2026. This represents a total increase of approximately 74.6% over the period. The growth rate remained resilient, with consistent annual gains that indicate a scalable operational model.
- Operational Profitability (EBIT and EBT)
- Earnings before interest and tax (EBIT) followed a parallel growth pattern to EBITDA, increasing from 6,851 million US$ in 2021 to 12,396 million US$ in 2026. The consistent gap between EBITDA and EBIT suggests a stable trend in depreciation and amortization expenses. Furthermore, the close proximity between EBIT and Earnings before tax (EBT) indicates a managed and stable interest expense profile relative to the growth in operating income.
- Net Income Translation
- Net income attributable to the company grew from 5,007 million US$ in 2021 to 9,226 million US$ in 2026. The expansion of the bottom line closely tracks the growth seen in EBITDA and EBIT, confirming that the operational gains are effectively translating into net profitability after the application of taxes and interest.
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Enterprise Value to EBITDA Ratio, Current
Costco Wholesale Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 421,750) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 15,070) |
| Valuation Ratio | |
| EV/EBITDA | 27.99 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Target Corp. | 9.42 |
| Walmart Inc. | 21.29 |
| EV/EBITDA, Sector | |
| Consumer Staples Distribution & Retail | 23.29 |
| EV/EBITDA, Industry | |
| Consumer Staples | 20.55 |
Based on: 10-K (reporting date: 2026-08-30).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Costco Wholesale Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Aug 30, 2026 | Aug 31, 2025 | Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 403,813) | 397,403) | 399,049) | 243,035) | 209,733) | 195,411) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 15,070) | 13,398) | 12,146) | 10,724) | 9,898) | 8,632) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 26.80 | 29.66 | 32.85 | 22.66 | 21.19 | 22.64 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Target Corp. | 7.76 | 6.94 | 10.37 | 13.52 | 9.00 | 10.35 | |
| Walmart Inc. | 22.72 | 17.31 | 14.63 | 13.92 | 13.94 | 12.01 | |
| EV/EBITDA, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 18.50 | 17.87 | 15.84 | 14.18 | 13.50 | |
| EV/EBITDA, Industry | |||||||
| Consumer Staples | — | 18.05 | 17.62 | 16.39 | 16.42 | 15.65 | |
Based on: 10-K (reporting date: 2026-08-30), 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).
3 2026 Calculation
EV/EBITDA = EV ÷ EBITDA
= 403,813 ÷ 15,070 = 26.80
4 Click competitor name to see calculations.
The financial trajectory from 2021 to 2026 is characterized by consistent operational growth contrasted with a significant shift in market valuation. While earnings capacity has expanded linearly, the valuation multiple experienced a substantial peak followed by a period of gradual contraction.
- Enterprise Value Trends
- Enterprise value exhibited moderate growth between 2021 and 2023, increasing from 195,411 million US$ to 243,035 million US$. A sharp escalation occurred in 2024, with the value rising to 399,049 million US$. For the final two periods, the enterprise value stabilized, ending at 403,813 million US$ in 2026.
- EBITDA Performance
- Earnings before interest, tax, depreciation, and amortization demonstrated a steady upward trend throughout the entire period. EBITDA grew from 8,632 million US$ in 2021 to 15,070 million US$ by 2026. This continuous growth indicates a sustained improvement in core operational profitability.
- EV/EBITDA Multiple Analysis
- The EV/EBITDA ratio remained stable between 21.19 and 22.66 from 2021 to 2023. A significant spike to 32.85 was recorded in 2024, driven by the disproportionate increase in enterprise value relative to earnings growth. In the subsequent years, a downward trend is observed, with the ratio compressing to 29.66 in 2025 and further to 26.80 in 2026, suggesting a gradual normalization of the valuation multiple as earnings growth catches up to the enterprise value.
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