Costco Wholesale Corp. (NASDAQ:COST)

Net income attributable to Costco

The net income shows a consistent upward trend over the six-year period. Starting at $3,659 million in 2019, it grew steadily each year, reaching $7,367 million in 2024. This represents more than a doubling of net income within the time frame, indicating solid profitability improvements.

Earnings before tax (EBT)

EBT also demonstrates continuous growth across the years. From $4,765 million in 2019, it increased progressively to $9,740 million by 2024. The growth rate appears to be robust and consistent, paralleling the net income trend, suggesting effective cost management and revenue expansion before tax impacts.

Earnings before interest and tax (EBIT)

EBIT follows a similar ascending pattern, rising from $4,915 million in 2019 to $9,909 million in 2024. The steady increase in EBIT reflects enhanced operational profitability before interest and taxes, which aligns with the observed improvements in EBT and net income.

Earnings before interest, tax, depreciation and amortization (EBITDA)

EBITDA experienced significant growth, beginning at $6,407 million in 2019 and reaching $12,146 million in 2024. This measure, representing cash operating income, roughly doubled over the period, implying strong operational performance and efficient management of non-cash expenses such as depreciation and amortization.

Overall Trends and Insights

All key profitability metrics show a consistent and steady increase from 2019 to 2024, with net income more than doubling. The parallel upward trends in EBT, EBIT, and EBITDA suggest sustained growth in operating performance and effective cost control. The growth across these financial indicators indicates a healthy financial trajectory with expanding earnings capacity and operational efficiency over the evaluated period.

The financial data demonstrates a consistent upward trend in both enterprise value (EV) and EBITDA over the six-year period. Enterprise value increased steadily from $128,983 million in 2019 to $399,049 million in 2024, representing more than a threefold increase. Similarly, EBITDA rose from $6,407 million in 2019 to $12,146 million in 2024, nearly doubling in this timeframe.

The EV/EBITDA ratio experienced fluctuations over the years, with values ranging from a low of 20.13 in 2019 to a high of 32.85 in 2024. Initially, the ratio increased gradually from 20.13 in 2019 to a peak of 22.66 in 2023, indicating an expanding valuation multiple relative to earnings. However, in 2024, the ratio jumped significantly to 32.85, suggesting a sharp increase in enterprise value relative to EBITDA during the latest period.

Enterprise Value (EV)

There is a consistent and strong growth trend in EV, reflecting market valuation expansion or increased investor confidence over the years.

EBITDA

EBITDA steadily increased each year, indicating improving earning capacity and operational performance.

EV/EBITDA Ratio

The ratio remains between 20 and 23 from 2019 through 2023, suggesting stable market valuation multiples during this period. The significant spike to 32.85 in 2024 may imply market expectations of future growth, valuation adjustments, or other factors impacting investor perception.

Overall, the data suggests that the company has demonstrated robust growth in both its operational earnings and market valuation, with a notable re-rating in valuation multiples in the most recent year. This change warrants further analysis to understand the underlying factors driving the elevated EV relative to EBITDA.