Free Cash Flow to The Firm (FCFF)
Interest Paid, Net of Tax
EV to FCFF Ratio, Current
EV to FCFF Ratio, Historical

Costco Wholesale Corp., FCFF calculation

USD $ in millions

	12 months ended	Sep 2, 2018	Sep 3, 2017	Aug 28, 2016	Aug 30, 2015	Aug 31, 2014	Sep 1, 2013
	Net income attributable to Costco
	Net income attributable to noncontrolling interests
	Net noncash charges
	Changes in operating assets and liabilities
	Net cash provided by operating activities
	Cash paid during the year for interest, reduced by interest capitalized, net of tax¹
	Interest capitalized, net of tax²
	Additions to property and equipment
	Free cash flow to the firm (FCFF)

Based on: 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14), 10-K (filing date: 2014-10-15), 10-K (filing date: 2013-10-16).

^{1, 2} See Details »

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Costco Wholesale Corp.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Costco Wholesale Corp.’s FCFF increased from 2016 to 2017 but then slightly declined from 2017 to 2018.

Costco Wholesale Corp., interest paid, net of tax calculation

USD $ in millions

	12 months ended	Sep 2, 2018	Sep 3, 2017	Aug 28, 2016	Aug 30, 2015	Aug 31, 2014	Sep 1, 2013
	Effective Income Tax Rate (EITR)

	EITR¹
	Interest Paid, Net of Tax
	Cash paid during the year for interest, reduced by interest capitalized, before tax
	Less: Cash paid during the year for interest, reduced by interest capitalized, tax²
	Cash paid during the year for interest, reduced by interest capitalized, net of tax
	Interest Costs Capitalized, Net of Tax
	Interest capitalized, before tax
	Less: Interest capitalized, tax³
	Interest capitalized, net of tax

Based on: 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14), 10-K (filing date: 2014-10-15), 10-K (filing date: 2013-10-16).

¹ See Details »

2018 Calculations

² Cash paid during the year for interest, reduced by interest capitalized, tax = Cash paid during the year for interest, reduced by interest capitalized × EITR
= hidden × hidden = hidden

³ Interest capitalized, tax = Interest capitalized × EITR
= hidden × hidden = hidden

Costco Wholesale Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (USD $ in millions)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors
Amazon.com Inc.
eBay Inc.
Home Depot Inc.
Lowe’s Cos. Inc.
Netflix Inc.
Target Corp.
TJX Cos. Inc.
Walmart Inc.
EV/FCFF, Sector
General Retailers
EV/FCFF, Industry
Consumer Services

Based on: 10-K (filing date: 2018-10-26).

If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.

Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Costco Wholesale Corp., historical EV/FCFF calculation, comparison to benchmarks

		Sep 2, 2018	Sep 3, 2017	Aug 28, 2016	Aug 30, 2015	Aug 31, 2014	Sep 1, 2013
	Selected Financial Data (USD $ in millions)
	Enterprise value (EV)¹
	Free cash flow to the firm (FCFF)²
	Ratio
	EV/FCFF³
	Benchmarks
	EV/FCFF, Competitors
	Amazon.com Inc.
	eBay Inc.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Netflix Inc.
	Target Corp.
	TJX Cos. Inc.
	Walmart Inc.
	EV/FCFF, Sector
	General Retailers
	EV/FCFF, Industry
	Consumer Services

Based on: 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14), 10-K (filing date: 2014-10-15), 10-K (filing date: 2013-10-16).

¹ See Details »

² See Details »

2018 Calculations

³ EV/FCFF = EV ÷ FCFF
= hidden ÷ hidden = hidden

Ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Costco Wholesale Corp.’s EV/FCFF ratio declined from 2016 to 2017 but then slightly increased from 2017 to 2018.

	Costco Wholesale Corp.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Costco Wholesale Corp. (COST)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical