Current Valuation Ratios

Costco Wholesale Corp., current price multiples

 
Costco Wholesale Corp. Amazon.com Inc. eBay Inc. Home Depot Inc. Lowe's Cos. Inc. Netflix Inc. Target Corp. TJX Cos. Inc. Walmart Inc. General Retailers Consumer Services
Selected Financial Data
Current share price (P) $ 198.97
No. shares of common stock outstanding 438,820,272
Growth rate (g) 2.29%
 
Earnings per share (EPS) $ 6.11
Next year expected EPS $ 6.24
Operating profit per share $ 9.37
Sales per share $ 287.53
Book value per share (BVPS) $ 24.56
Ratios (Price Multiples)
Price to earnings (P/E) 32.59 253.00 25.06 20.54 257.89 13.86 21.03 24.94 47.59 24.35
Price to next year expected earnings 31.86 237.75 16.85 17.07 233.69 12.42 15.10 22.40 42.15 21.24
Price-earnings-growth (PEG) 14.25 39.45 0.51 1.01 24.91 1.19 0.54 2.19 3.69 1.66
Price to operating profit (P/OP) 21.24 186.88 16.58 14.73 10.75 171.87 9.43 14.10 12.04 26.78 17.53
Price to sales (P/S) 0.69 4.31 3.92 2.14 1.03 12.33 0.57 1.53 0.50 1.56 1.56
Price to book value (P/BV) 8.10 27.69 4.66 148.73 12.06 40.24 3.47 10.65 3.16 10.80 6.09

If company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.

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

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Historical Valuation Ratios (Summary)

Costco Wholesale Corp., historical price multiples

 
Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014 Sep 1, 2013 Sep 2, 2012
Price to earnings (P/E) 25.70 27.99 27.57 26.44 25.15 23.98
Price to operating profit (P/OP) 16.75 17.91 18.09 16.90 16.80 14.86
Price to sales (P/S) 0.55 0.57 0.58 0.49 0.50 0.42
Price to book value (P/BV) 6.39 5.44 6.17 4.42 4.73 3.32
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 2015 to 2016 but then declined significantly from 2016 to 2017.
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 declined from 2015 to 2016 and from 2016 to 2017.
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 declined from 2015 to 2016 and from 2016 to 2017.
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 declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

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Price to Earnings (P/E)

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

 
Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014 Sep 1, 2013 Sep 2, 2012
No. shares of common stock outstanding1 436,989,606 437,126,569 437,406,636 437,762,068 436,922,037 432,424,379
Selected Financial Data (USD $)
Net income attributable to Costco (in millions) 2,679  2,350  2,377  2,058  2,039  1,709 
Earnings per share (EPS)3 6.13 5.38 5.43 4.70 4.67 3.95
Share price1, 2 157.55 150.46 149.84 124.30 117.36 94.78
Ratio
P/E ratio4 25.70 27.99 27.57 26.44 25.15 23.98
Benchmarks
P/E Ratio, Competitors
Amazon.com Inc. 228.24 166.53 463.73 601.22
eBay Inc. 4.79 16.36 1,433.64 24.12
Home Depot Inc. 22.37 23.32 23.15 20.18 22.86
Lowe's Cos. Inc. 22.62 26.67 26.24 21.79 21.13
Netflix Inc. 220.95 328.44 329.54 100.63 215.17
Target Corp. 11.11 14.61 19.07 14.65
TJX Cos. Inc. 22.11 22.87 21.61 20.15 17.98
Walmart Inc. 16.02 14.72 15.91 15.34 14.48
P/E Ratio, Sector
General Retailers 42.17 26.29 32.05 26.62 23.12
P/E Ratio, Industry
Consumer Services 23.26 22.79 23.36 24.03 19.17

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Costco Wholesale Corp.'s Annual Report.

2017 Calculations

3 EPS = Net income attributable to Costco ÷ No. shares of common stock outstanding
= 2,679,000,000 ÷ 436,989,606 = 6.13

4 P/E ratio = Share price ÷ EPS
= 157.55 ÷ 6.13 = 25.70

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 2015 to 2016 but then declined significantly from 2016 to 2017.

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Price to Operating Profit (P/OP)

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

 
Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014 Sep 1, 2013 Sep 2, 2012
No. shares of common stock outstanding1 436,989,606 437,126,569 437,406,636 437,762,068 436,922,037 432,424,379
Selected Financial Data (USD $)
Operating income (in millions) 4,111  3,672  3,624  3,220  3,053  2,759 
Operating profit per share3 9.41 8.40 8.29 7.36 6.99 6.38
Share price1, 2 157.55 150.46 149.84 124.30 117.36 94.78
Ratio
P/OP ratio4 16.75 17.91 18.09 16.90 16.80 14.86
Benchmarks
P/OP Ratio, Competitors
Amazon.com Inc. 168.59 94.32 123.77 924.93 221.12
eBay Inc. 18.93 14.98 12.84 18.77 20.43
Home Depot Inc. 13.26 13.88 14.03 11.86 13.35
Lowe's Cos. Inc. 11.97 13.66 14.77 12.01 11.63
Netflix Inc. 147.25 161.44 132.15 66.68 105.92
Target Corp. 6.12 8.88 11.20 8.89 8.18
TJX Cos. Inc. 13.20 14.06 13.28 12.85 11.04
Walmart Inc. 9.60 8.97 9.59 9.14 8.85
P/OP Ratio, Sector
General Retailers 23.73 18.23 16.76 14.46 14.15
P/OP Ratio, Industry
Consumer Services 16.74 14.68 14.07 13.77 13.49

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Costco Wholesale Corp.'s Annual Report.

2017 Calculations

3 Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 4,111,000,000 ÷ 436,989,606 = 9.41

4 P/OP ratio = Share price ÷ Operating profit per share
= 157.55 ÷ 9.41 = 16.75

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 declined from 2015 to 2016 and from 2016 to 2017.

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Price to Sales (P/S)

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

 
Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014 Sep 1, 2013 Sep 2, 2012
No. shares of common stock outstanding1 436,989,606 437,126,569 437,406,636 437,762,068 436,922,037 432,424,379
Selected Financial Data (USD $)
Net sales (in millions) 126,172  116,073  113,666  110,212  102,870  97,062 
Sales per share3 288.73 265.54 259.86 251.76 235.44 224.46
Share price1, 2 157.55 150.46 149.84 124.30 117.36 94.78
Ratio
P/S ratio4 0.55 0.57 0.58 0.49 0.50 0.42
Benchmarks
P/S Ratio, Competitors
Amazon.com Inc. 3.89 2.90 2.58 1.85 2.21
eBay Inc. 4.48 3.88 3.28 3.68 4.29
Home Depot Inc. 1.88 1.85 1.77 1.38 1.39
Lowe's Cos. Inc. 1.08 1.15 1.26 0.93 0.82
Netflix Inc. 10.56 6.94 5.96 4.88 5.53
Target Corp. 0.44 0.67 0.70 0.52 0.61
TJX Cos. Inc. 1.53 1.68 1.65 1.57 1.33
Walmart Inc. 0.45 0.45 0.54 0.52 0.53
P/S Ratio, Sector
General Retailers 1.38 1.10 1.03 0.86 0.88
P/S Ratio, Industry
Consumer Services 1.49 1.32 1.29 1.19 1.17

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Costco Wholesale Corp.'s Annual Report.

2017 Calculations

3 Sales per share = Net sales ÷ No. shares of common stock outstanding
= 126,172,000,000 ÷ 436,989,606 = 288.73

4 P/S ratio = Share price ÷ Sales per share
= 157.55 ÷ 288.73 = 0.55

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 declined from 2015 to 2016 and from 2016 to 2017.

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Price to Book Value (P/BV)

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

 
Sep 3, 2017 Aug 28, 2016 Aug 30, 2015 Aug 31, 2014 Sep 1, 2013 Sep 2, 2012
No. shares of common stock outstanding1 436,989,606 437,126,569 437,406,636 437,762,068 436,922,037 432,424,379
Selected Financial Data (USD $)
Total Costco stockholders' equity (in millions) 10,778  12,079  10,617  12,303  10,833  12,361 
Book value per share (BVPS)3 24.66 27.63 24.27 28.10 24.79 28.59
Share price1, 2 157.55 150.46 149.84 124.30 117.36 94.78
Ratio
P/BV ratio4 6.39 5.44 6.17 4.42 4.73 3.32
Benchmarks
P/BV Ratio, Competitors
Amazon.com Inc. 24.98 20.47 20.65 15.33 16.90
eBay Inc. 5.32 3.30 4.29 3.31 2.91
Home Depot Inc. 41.08 25.88 15.76 8.68 5.83
Lowe's Cos. Inc. 10.87 8.87 7.10 4.20 2.99
Netflix Inc. 34.48 22.88 18.18 14.45 18.14
Target Corp. 2.78 3.79 3.63 2.32 2.65
TJX Cos. Inc. 11.27 12.09 11.23 10.18 9.35
Walmart Inc. 2.81 2.69 3.20 3.22 3.22
P/BV Ratio, Sector
General Retailers 9.57 7.07 6.51 4.80 4.48
P/BV Ratio, Industry
Consumer Services 5.81 5.02 5.07 4.31 3.86

1 Data adjusted for splits and stock dividends.

2 Close price on the filing date of Costco Wholesale Corp.'s Annual Report.

2017 Calculations

3 BVPS = Total Costco stockholders' equity ÷ No. shares of common stock outstanding
= 10,778,000,000 ÷ 436,989,606 = 24.66

4 P/BV ratio = Share price ÷ BVPS
= 157.55 ÷ 24.66 = 6.39

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 declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

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