Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Costco Wholesale Corp., FCFE 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).
The financial trajectory from 2021 through 2026 reflects a period of initial volatility followed by a sustained expansion in both operational cash generation and the cash available to equity holders. After a notable contraction in 2022, both metrics demonstrate a consistent upward trend, indicating strengthening liquidity and enhanced capacity for shareholder distributions or reinvestment.
- Operating Cash Flow Trends
- Net cash provided by operating activities experienced a decline from 8,958 million US$ in 2021 to 7,392 million US$ in 2022. This was followed by a robust recovery in 2023, where cash flow increased to 11,068 million US$. The growth trend continued steadily through the projected periods, reaching 15,817 million US$ by 2026, which represents a significant increase in the company's ability to generate cash from its core business operations.
- Free Cash Flow to Equity (FCFE) Performance
- FCFE exhibited a sharp decrease in 2022, falling to 2,748 million US$ from 5,317 million US$ in the prior year. While a slight dip occurred in 2024 to 6,058 million US$, the overall trajectory remained positive, with FCFE projected to reach 9,785 million US$ by 2026. The recovery from the 2022 low suggests a normalization of capital expenditures or a strategic shift in debt management.
- Cash Conversion and Efficiency
- The gap between operating cash flow and FCFE was most significant in 2022, suggesting a period of high capital investment or debt repayment relative to operating inflows. Over the subsequent years, the correlation between the two metrics tightened. By 2026, FCFE is projected to represent approximately 62% of net cash provided by operating activities, compared to only 37% in 2022, indicating a more efficient conversion of operating cash into equity-available funds.
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Price to FCFE Ratio, Current
Costco Wholesale Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 443,129,349 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 9,785) |
| FCFE per share | 22.08 |
| Current share price (P) | 1,066.14 |
| Valuation Ratio | |
| P/FCFE | 48.28 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Target Corp. | 23.14 |
| Walmart Inc. | 50.03 |
| P/FCFE, Sector | |
| Consumer Staples Distribution & Retail | 65.33 |
| P/FCFE, Industry | |
| Consumer Staples | 40.02 |
Based on: 10-K (reporting date: 2026-08-30).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Costco Wholesale Corp., historical P/FCFE calculation, comparison to benchmarks
| Aug 30, 2026 | Aug 31, 2025 | Sep 1, 2024 | Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 443,129,349 | 443,179,176 | 443,073,537 | 442,740,572 | 442,604,145 | 441,823,811 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | 9,785) | 7,688) | 6,058) | 6,652) | 2,748) | 5,317) | |
| FCFE per share3 | 22.08 | 17.35 | 13.67 | 15.02 | 6.21 | 12.03 | |
| Share price1, 4 | 942.25 | 914.80 | 909.10 | 565.52 | 480.32 | 449.34 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 42.67 | 52.73 | 66.49 | 37.64 | 77.36 | 37.34 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Target Corp. | 16.94 | 11.98 | 20.98 | 79.07 | 16.91 | 11.21 | |
| Walmart Inc. | 50.66 | 57.81 | 29.40 | 25.97 | 122.02 | 18.26 | |
| P/FCFE, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 48.24 | 36.75 | 31.77 | 59.72 | 19.62 | |
| P/FCFE, Industry | |||||||
| Consumer Staples | — | 33.00 | 32.08 | 24.17 | 25.27 | 24.83 | |
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).
1 Data adjusted for splits and stock dividends.
3 2026 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 9,785,000,000 ÷ 443,129,349 = 22.08
4 Closing price as at the filing date of Costco Wholesale Corp. Annual Report.
5 2026 Calculation
P/FCFE = Share price ÷ FCFE per share
= 942.25 ÷ 22.08 = 42.67
6 Click competitor name to see calculations.
The analysis of the Price to Free Cash Flow to Equity (P/FCFE) ratio reveals a period of significant valuation volatility, characterized by sharp expansions followed by gradual contractions. This volatility is primarily driven by the divergence between a consistently ascending share price and fluctuating cash flow yields per share.
- Share Price Evolution
- The share price demonstrates a sustained upward trajectory, rising from 449.34 US$ in 2021 to 942.25 US$ by 2026. A notable acceleration occurred between September 2023 and September 2024, during which the price increased from 565.52 US$ to 909.10 US$, indicating a strong increase in market valuation over that twelve-month period.
- FCFE per Share Performance
- Free Cash Flow to Equity per share experienced a sharp decline in 2022, falling to 6.21 US$ from 12.03 US$ in 2021. Following this low point, a recovery was observed in 2023, with a subsequent trend of steady growth leading to 22.08 US$ by 2026. The growth pattern from 2024 onward suggests an improving ability to generate cash available for distribution to equity holders.
- P/FCFE Ratio Dynamics
- The P/FCFE ratio peaked twice during the observed period, reaching 77.36 in 2022 and 66.49 in 2024. The 2022 peak was the result of a contraction in FCFE occurring simultaneously with a rising share price. The 2024 peak was driven by the share price increasing at a rate that significantly outpaced FCFE growth. A downward trend in the ratio is observed from 2024 through 2026, with the ratio descending to 42.67, signaling a gradual normalization as cash flow growth begins to align more closely with the market price.
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