Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Costco Wholesale Corp. (NASDAQ:COST)

Common Stock Valuation Ratios (Price Multiples)

Beginner level

Current Valuation Ratios

Costco Wholesale Corp., current price multiples

Microsoft Excel LibreOffice Calc
Costco Wholesale Corp. Amazon.com Inc. Dollar General Corp. Home Depot Inc. Lowe’s Cos. Inc. Target Corp. TJX Cos. Inc. Walmart Inc. General Retailers Consumer Services
Selected Financial Data
Current share price (P) $328.46
No. shares of common stock outstanding 442,955,229
Growth rate (g) 8.28%
 
Earnings per share (EPS) $9.03
Next year expected EPS $9.78
Operating profit per share $12.27
Sales per share $368.48
Book value per share (BVPS) $41.28
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 36.36 73.05 26.68 24.93 27.91 26.48 24.29 24.74 62.50 44.84
Price to next year expected earnings 33.57 61.38 22.59 10.47 21.24 23.24 17.55 22.95 54.28 38.89
Price-earnings-growth (PEG) 4.39 3.84 1.47 0.18 0.89 1.90 0.63 3.17 4.13 2.93
Price to operating profit (P/OP) 26.77 68.05 19.85 17.69 18.92 18.65 18.00 17.90 37.68 28.83
Price to sales (P/S) 0.89 4.04 1.65 2.54 1.66 1.13 1.91 0.71 2.13 2.26
Price to book value (P/BV) 7.96 16.68 6.82 60.58 7.34 13.36 4.93 15.39 9.34

Based on: 10-K (filing date: 2020-10-07).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Costco Wholesale Corp., historical price multiples

Microsoft Excel LibreOffice Calc
Aug 30, 2020 Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016 Aug 30, 2015
Price to earnings (P/E) 40.02 35.76 30.51 25.70 27.99 27.57
Price to operating profit (P/OP) 29.47 27.62 21.34 16.75 17.91 18.09
Price to sales (P/S) 0.98 0.88 0.69 0.55 0.57 0.58
Price to book value (P/BV) 8.76 8.58 7.47 6.39 5.44 6.17

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Costco Wholesale Corp.’s P/E ratio increased from 2018 to 2019 and from 2019 to 2020.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Costco Wholesale Corp.’s P/OP ratio increased from 2018 to 2019 and from 2019 to 2020.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Costco Wholesale Corp.’s P/S ratio increased from 2018 to 2019 and from 2019 to 2020.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Costco Wholesale Corp.’s P/BV ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Earnings (P/E)

Costco Wholesale Corp., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 30, 2020 Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016 Aug 30, 2015
No. shares of common stock outstanding1 441,228,027 439,656,950 438,208,376 436,989,606 437,126,569 437,406,636
Selected Financial Data (US$)
Net income attributable to Costco (in millions) 4,002  3,659  3,134  2,679  2,350  2,377 
Earnings per share (EPS)2 9.07 8.32 7.15 6.13 5.38 5.43
Share price1, 3 363.02 297.60 218.19 157.55 150.46 149.84
Valuation Ratio
P/E ratio4 40.02 35.76 30.51 25.70 27.99 27.57
Benchmarks
P/E Ratio, Competitors5
Amazon.com Inc. 78.20 86.29 79.30 228.24 166.53
Dollar General Corp. 21.04 19.18 15.73 15.28 20.63 21.58
Home Depot Inc. 17.38 18.87 23.51 22.37 23.32 23.15
Lowe’s Cos. Inc. 11.96 37.80 20.26 22.62 26.67 26.24
Target Corp. 16.12 13.56 12.97 11.11 14.61
TJX Cos. Inc. 17.13 21.11 20.19 22.11 22.87 21.62
Walmart Inc. 21.69 41.79 26.62 16.02 14.72 15.91
P/E Ratio, Sector
General Retailers 42.89 36.58 36.19 28.89
P/E Ratio, Industry
Consumer Services 32.56 29.96 23.68 25.70

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
EPS = Net income attributable to Costco ÷ No. shares of common stock outstanding
= 4,002,000,000 ÷ 441,228,027 = 9.07

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

4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 363.02 ÷ 9.07 = 40.02

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Costco Wholesale Corp.’s P/E ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Operating Profit (P/OP)

Costco Wholesale Corp., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 30, 2020 Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016 Aug 30, 2015
No. shares of common stock outstanding1 441,228,027 439,656,950 438,208,376 436,989,606 437,126,569 437,406,636
Selected Financial Data (US$)
Operating income (in millions) 5,435  4,737  4,480  4,111  3,672  3,624 
Operating profit per share2 12.32 10.77 10.22 9.41 8.40 8.29
Share price1, 3 363.02 297.60 218.19 157.55 150.46 149.84
Valuation Ratio
P/OP ratio4 29.47 27.62 21.34 16.75 17.91 18.09
Benchmarks
P/OP Ratio, Competitors5
Amazon.com Inc. 72.84 68.77 64.31 168.59 94.32
Dollar General Corp. 15.65 14.41 12.05 9.26 12.39 13.00
Home Depot Inc. 12.33 13.51 13.82 13.26 13.88 14.03
Lowe’s Cos. Inc. 8.11 21.77 10.61 11.97 13.66 14.77
Target Corp. 11.35 9.69 8.83 6.12 8.88 11.20
TJX Cos. Inc. 12.69 15.31 13.54 13.20 14.06 13.28
Walmart Inc. 15.69 12.69 12.85 9.60 8.97 9.59
P/OP Ratio, Sector
General Retailers 25.86 22.45 21.72 17.26
P/OP Ratio, Industry
Consumer Services 20.93 18.87 18.08 15.67

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 5,435,000,000 ÷ 441,228,027 = 12.32

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

4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 363.02 ÷ 12.32 = 29.47

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Costco Wholesale Corp.’s P/OP ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Sales (P/S)

Costco Wholesale Corp., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 30, 2020 Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016 Aug 30, 2015
No. shares of common stock outstanding1 441,228,027 439,656,950 438,208,376 436,989,606 437,126,569 437,406,636
Selected Financial Data (US$)
Net sales (in millions) 163,220  149,351  138,434  126,172  116,073  113,666 
Sales per share2 369.92 339.70 315.91 288.73 265.54 259.86
Share price1, 3 363.02 297.60 218.19 157.55 150.46 149.84
Valuation Ratio
P/S ratio4 0.98 0.88 0.69 0.55 0.57 0.58
Benchmarks
P/S Ratio, Competitors5
Amazon.com Inc. 4.32 3.56 3.43 3.89 2.90
Dollar General Corp. 1.30 1.19 1.03 0.87 1.18 1.22
Home Depot Inc. 1.77 1.94 2.01 1.88 1.85 1.77
Lowe’s Cos. Inc. 0.71 1.23 1.02 1.08 1.15 1.26
Target Corp. 0.69 0.53 0.53 0.44 0.67 0.70
TJX Cos. Inc. 1.34 1.66 1.47 1.53 1.68 1.65
Walmart Inc. 0.62 0.55 0.53 0.45 0.45 0.54
P/S Ratio, Sector
General Retailers 1.46 1.32 1.24 1.03
P/S Ratio, Industry
Consumer Services 1.64 1.52 1.51 1.32

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 163,220,000,000 ÷ 441,228,027 = 369.92

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

4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 363.02 ÷ 369.92 = 0.98

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Costco Wholesale Corp.’s P/S ratio increased from 2018 to 2019 and from 2019 to 2020.

Price to Book Value (P/BV)

Costco Wholesale Corp., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 30, 2020 Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016 Aug 30, 2015
No. shares of common stock outstanding1 441,228,027 439,656,950 438,208,376 436,989,606 437,126,569 437,406,636
Selected Financial Data (US$)
Total Costco stockholders’ equity (in millions) 18,284  15,243  12,799  10,778  12,079  10,617 
Book value per share (BVPS)2 41.44 34.67 29.21 24.66 27.63 24.27
Share price1, 3 363.02 297.60 218.19 157.55 150.46 149.84
Valuation Ratio
P/BV ratio4 8.76 8.58 7.47 6.39 5.44 6.17
Benchmarks
P/BV Ratio, Competitors5
Amazon.com Inc. 17.86 16.11 18.34 24.98 20.47
Dollar General Corp. 5.38 4.75 3.95 3.54 4.47 4.03
Home Depot Inc. 139.52 41.08 25.88 15.76
Lowe’s Cos. Inc. 25.96 24.01 11.89 10.87 8.87 7.10
Target Corp. 4.47 3.52 3.25 2.78 3.79 3.63
TJX Cos. Inc. 9.42 12.79 10.23 11.27 12.09 11.23
Walmart Inc. 4.32 3.84 3.37 2.81 2.69 3.20
P/BV Ratio, Sector
General Retailers 10.56 9.39 8.98 6.96
P/BV Ratio, Industry
Consumer Services 6.78 6.39 6.46 5.50

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 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).

1 Data adjusted for splits and stock dividends.

2 2020 Calculation
BVPS = Total Costco stockholders’ equity ÷ No. shares of common stock outstanding
= 18,284,000,000 ÷ 441,228,027 = 41.44

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

4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 363.02 ÷ 41.44 = 8.76

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Costco Wholesale Corp.’s P/BV ratio increased from 2018 to 2019 and from 2019 to 2020.