Costco Wholesale Corp. (NASDAQ:COST)

Price to Earnings (P/E) Ratio

The P/E ratio demonstrates an overall upward trend from the beginning to the middle of the observed period, rising from 37.85 to a peak near 57.16. This suggests that market valuations relative to earnings increased, potentially reflecting higher growth expectations or improved investor sentiment. However, toward the end of the timeline, a decline is noticeable, dropping to approximately 46.12, which might indicate a market moderation or a reassessment of growth prospects.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio mirrors a similar trajectory to the P/E ratio, with an initial ascent from 28.2 to a peak exceeding 44 in the mid to later periods. This implies a rising valuation of the company relative to its operating profit, indicating growing market confidence in operational efficiency or profitability sustainability. A subsequent downward adjustment occurs near the end, suggesting a tempering of investor outlook or operational profit expectations.

Price to Sales (P/S) Ratio

The P/S ratio shows a clear upward trend throughout the entire period, beginning near 0.97 and peaking at about 1.7 before a slight retreat toward the end. This consistent increase signifies that the market is valuing each dollar of sales more highly, which may reflect improving top-line performance, stronger sales growth, or enhanced revenue quality perceived by investors.

Price to Book Value (P/BV) Ratio

The P/BV ratio experiences notable growth, moving from 11.01 at the start to a high exceeding 17 in the middle periods. This indicates an increased market premium over the accounting book value, possibly due to expectations of higher future returns or strong asset utilization. Toward the end, the ratio declines to around 12.64, which could imply a reassessment of the company’s asset base value or market valuation normalization.

Share Price Trend

The share price demonstrated a general upward trajectory over the examined periods, increasing from approximately 369.44 US$ to a peak of 1010.81 US$ in the period ending August 31, 2025. Despite this overall growth, there were intermittent declines, notably around November 2022 and the last two quarters, where the price receded to 862.65 US$. This indicates periods of market correction or investor profit-taking after sharp rises.

Earnings Per Share (EPS) Trend

The EPS showed a consistent and steady increase across all periods, beginning at 9.76 US$ and rising to 18.7 US$ by the end of the timeline. This progression reflects sustained profitability improvements and effective earnings growth, suggesting strong operational performance and possibly successful business strategies supporting higher earnings generation per share.

Price-to-Earnings (P/E) Ratio Trend

The P/E ratio exhibited fluctuations with a mild upward trend overall. It initially stood at 37.85, decreased to the low 30s during early 2021, then climbed steadily to a high of 57.16 by mid-2025 before retreating moderately thereafter. The rising P/E suggests increasing market optimism or elevated valuation multiples relative to earnings growth, potentially reflecting investor expectations of future gains or confidence in sustained company performance.

Integrated Financial Insights

While earnings improved consistently, the share price showed greater volatility but with a strong upward trend, indicating that market valuation often outpaced earnings growth, particularly in the later periods. The increasing P/E ratios toward the latter years highlight that the stock was valued increasingly on future growth prospects rather than purely on current earnings. Periodic corrections in share price despite rising earnings could suggest market responses to external economic factors, investor sentiment shifts, or profit-taking activities.

Share Price Trends

The share price exhibited a rising trend over the examined period with some volatility. Starting at $369.44, it increased to a peak of $1010.81 around August 2025 before experiencing a decline towards the end of the period, finishing near $862.65. This indicates overall strong market confidence with fluctuations possibly reflecting changing market conditions or company-specific news.

Operating Profit Per Share (OPPS) Movements

Operating profit per share showed a consistent upward trajectory throughout the time frame. Beginning at $13.10, it steadily increased to approximately $23.99 by November 2025. This demonstrates improving operational efficiency or revenue growth contributing to higher profitability for each share outstanding over time.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio displayed more fluctuation than the other two metrics. Initially, it decreased from 28.2 to a low near 24.38, suggesting a phase of relatively undervalued pricing compared to operating profit. However, from early 2021 onwards, the ratio generally increased, reaching a high above 44 by mid-2025. This rise indicates that the share price growth outpaced operating profit increases during this period, possibly reflecting heightened investor expectations or speculative premiums. Towards the very end, there was a slight decrease in the ratio, aligning with the observed share price decline.

Overall Insights

The data reveals strong operational improvements as evidenced by rising operating profit per share. Share prices generally followed this positive performance but with greater volatility and sharper increases, particularly in the later periods. The expanding P/OP ratio reflects increasing valuation multiples, signaling amplified investor optimism or market exuberance. Toward the end, a correction in share price and valuation multiples suggests a tempering of optimism or reassessment of growth prospects.

The analysis of the quarterly financial data reveals several notable trends in the stock performance and valuation metrics over the examined periods. The share price demonstrated an overall upward trajectory with fluctuations that indicate periods of volatility. Beginning at $369.44, the price saw a decline toward early 2021 but subsequently increased sharply, reaching a peak above $1,000 in mid-2025 before experiencing a moderate decline toward the final quarters.

Sales per share exhibited consistent growth throughout the periods. Starting at $382.28, sales per share increased steadily with only minor deceleration, culminating in a value of $619.34 in the later quarters. This steady rise suggests ongoing revenue expansion relative to the number of outstanding shares, reflecting potentially improved operational performance or market penetration.

The Price-to-Sales (P/S) ratio demonstrated notable variation that corresponds with the movements in share price relative to sales per share. Initially fluctuating below and above parity, the ratio showed a rising trend beginning in late 2022, climbing from below 1.0 toward a peak of approximately 1.7 in 2025. This indicates growing shareholder willingness to pay a premium over sales, which may be attributed to improved market sentiment, profitability expectations, or sector valuation shifts. However, in the last observed periods, the P/S ratio experienced a slight reduction, indicating some revaluation or moderation in investor expectations.

Share Price Performance

Overall upward trend with volatility, including a peak above $1,000 in mid-2025, followed by a modest decline.

Sales per Share

Steady and consistent growth across all periods, pointing to improving sales efficiency or expansion.

Price-to-Sales Ratio

Initial fluctuations near parity, followed by a sustained upward trend indicating increased valuation multiples, then a slight correction toward the end.

Collectively, these trends suggest that the company experienced positive growth in sales per share while the market valuation increased at a faster pace, especially in recent periods. The elevated P/S ratios toward the final quarters may signal strong investor confidence, possibly driven by expectations of future growth or profitability improvements. The subsequent moderation in both share price and P/S ratio might be indicative of market adjustments or profit-taking behavior.

The share price has exhibited an overall upward trend throughout the observed periods. Beginning at $369.44, the price experienced fluctuations but generally increased, reaching a peak of $1010.81. Notably, there was a significant rise after the November 26, 2023 period, with the share price climbing sharply from $661 to $1010.81 by November 23, 2025. Despite the strong upward momentum, some periods showed declines, such as from $954.8 down to $890.62 and from $1010.81 to $914.8, suggesting intermittent market corrections or volatility.

The book value per share (BVPS) followed a steady growth trajectory, indicating consistent improvements in the company's net asset value attributed to each outstanding share. Starting at $33.55, BVPS increased almost continuously, reaching $68.27 by November 23, 2025. A temporary dip was observed around February 18, 2024, where BVPS fell to $46.81 from the preceding $58.93, but the upward trend resumed thereafter. This uninterrupted growth suggests strong balance sheet fundamentals over time.

The price-to-book value ratio (P/BV) reflected variability aligning with the movements in share price and BVPS. Initially at a high of 11.01, the ratio declined to a lower range around 9.16 to 9.43 across early to mid-periods, indicating more conservative market valuation relative to book value. Subsequently, P/BV rose significantly from 11.22 in November 26, 2023, to peak values above 17 between February 18, 2024, and November 24, 2024. This surge indicates that the market price increased faster than book value, possibly reflecting heightened investor optimism or expectations of higher future growth during that period. Following the peak, the ratio moderated but remained elevated relative to earlier periods, suggesting that the market continues to value the shares at a premium over book value even as the ratio gradually declines toward the later dates.

In summary, the financial measures show a strong growth trend in intrinsic value, with share prices reflecting market enthusiasm and valuation volatility over time. The company demonstrated robust asset growth reflected in BVPS, with systematic share price appreciation leading to varying but generally increased premium valuations as expressed by the P/BV ratio. The observed fluctuations in valuation multiples highlight periods of changing market sentiment and potential adjustments to long-term expectations.