Costco Wholesale Corp. (NASDAQ:COST)

Price to Earnings Ratio (P/E)

The Price to Earnings ratio exhibited fluctuations over the periods analyzed. Starting at 37.85, it saw a decline in early 2021, reaching a low near 32.99, before increasing steadily through late 2021 and into 2024. It peaked at 57.16 in mid-2025, followed by a slight decrease to 50.06 by August 2025. The general trend indicates increasing market valuation relative to earnings, with a notable upward trajectory from late 2022 onward.

Price to Operating Profit Ratio (P/OP)

The Price to Operating Profit ratio mirrored the P/E trend with some variation. It began at 28.2 and declined to 24.38 in early 2021, then gradually increased through 2021 and 2022. From early 2023 onwards, the ratio rose significantly, peaking at 44.63 in early 2025, before declining slightly to 39.05 by August 2025. This suggests investors increasingly valued operating profits at a higher premium over time, although with some recent correction.

Price to Sales Ratio (P/S)

The Price to Sales ratio showed an upward trend throughout the entire period. Starting at 0.97, it dipped to 0.82 in early 2021 but then rose steadily, reaching a peak of 1.7 in early 2025. There was a small decrease to 1.5 by August 2025. This progression indicates growing market confidence in the company's sales generation capabilities relative to its stock price.

Price to Book Value Ratio (P/BV)

The Price to Book Value ratio demonstrated significant volatility and an overall increasing trend until early 2025. It began at 11.01, declined to 9.16 by early 2021, and then increased steadily, reaching a maximum of 17.33 around early 2025. A subsequent decline to 13.9 was noted by August 2025. This pattern reflects an expansion in market valuation relative to the company's book value, followed by a retreat in the latest quarters.

Overall Insights

Market valuation ratios generally trended upward over the analyzed period, suggesting increased investor optimism and willingness to pay a premium for Costco Wholesale Corp.'s earnings, operating profits, sales, and book value. The few noted decreases and fluctuations indicate intermittent market corrections or shifts in investor expectations. The strongest growth occurred in the Price to Earnings and Price to Sales ratios, while the Price to Book Value ratio showed notable volatility. The recent slight declines in all ratios by August 2025 may indicate emerging caution or revaluation in the market.

The analyzed data reveals several notable trends in the financial performance metrics over the observed periods.

Share Price Trend

The share price has shown an overall increasing trend with notable fluctuations. Initially, the price rose steadily from approximately $370 to $550 within the first year. Following this peak, there was a period of decline and stagnation, with values hovering around the $480-$510 range for several quarters. However, starting around late 2023, the share price experienced significant acceleration, reaching highs above $900, peaking near $1,010 in mid-2025, before slightly retracting.

Earnings Per Share (EPS) Development

EPS has demonstrated consistent growth across all periods. Starting from $9.76, the EPS increased steadily and reached $18.27 by the final period, nearly doubling over the time span. This growth appears relatively smooth, with only minor deceleration in the middle periods, suggesting sustained profitability improvement.

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

The P/E ratio has exhibited a generally upward trajectory, indicating increasing market valuation relative to earnings. Starting at about 38, it fluctuated downward briefly to a low near 33 before rising progressively. The ratio peaked above 57 during middle 2025, signifying that the share price increased at a faster pace than earnings during that time frame. This elevated P/E indicates heightened investor expectations or perceived growth potential.

Combined Insights

The simultaneous rise of share price and EPS confirms positive company performance in terms of earnings growth. However, the P/E expansion suggests market optimism outpacing actual earnings growth during later periods, potentially increasing valuation risk. The data reflects a period of market correction or adjustment in certain quarters, followed by renewed confidence and stronger price appreciation relative to earnings.

Share Price Trend

The share price demonstrated a notable upward trajectory from November 2020 through May 2025, rising from $369.44 to a peak of $1010.81 in August 2025 before declining to $914.80 in the subsequent quarter. This indicates strong growth in market value with some volatility in the final periods observed.

Operating Profit per Share

The operating profit per share steadily increased over the entire timeline, starting at $13.10 in November 2020 and growing consistently to $23.43 by August 2025. This reflects ongoing improvements in operational profitability on a per-share basis, suggesting effective cost control or revenue growth supporting earnings.

Price-to-Operating Profit Ratio (P/OP)

The P/OP ratio fluctuated throughout the period. Initially, it decreased from 28.2 to 24.38 in early 2021, indicating valuation becoming more attractive relative to operating profits. Subsequently, it rose significantly, peaking around 44.63 in May 2025, before retreating to 39.05 in the last quarter. The rising P/OP ratio despite increasing operating profits per share implies investor expectations for future growth and possibly increasing market optimism, though the high ratios towards the end suggest the stock may be valued at a premium compared to underlying operational earnings.

Overall Insights

The consistent increase in operating profit per share points to solid financial performance improvements. The share price growth aligns closely with this trend, though it exhibits greater volatility. The expanding P/OP ratio over the period signals that market valuations have outpaced the growth in operating earnings, which may heighten sensitivity to changes in performance or market conditions going forward. This pattern warrants monitoring to assess the sustainability of valuation levels amid evolving operational results.

Share Price Trend

The share price exhibited considerable volatility over the analyzed periods. Initially, there was a decline from approximately $369 to around $324, followed by a steady increase, peaking at $549.67. After a brief downward correction, the price resumed an upward trajectory, reaching a high of approximately $1010.81 before declining again near the end of the period. Overall, the share price showed strong growth with intermittent volatility, reflecting fluctuating market sentiment or company-specific developments.

Sales per Share Trend

Sales per share demonstrated a consistent and gradual upward trend throughout the periods. Starting from $382.28, sales per share increased steadily in nearly every period, culminating in a value of $609.04. This indicates sustained growth in the company's revenue base on a per-share basis, suggestive of underlying operational strength and expansion of business activities.

Price-to-Sales (P/S) Ratio Trend

The Price-to-Sales ratio displayed a pattern of initial decline followed by a notable increase. Beginning at 0.97, the ratio decreased to a low of 0.82, then climbed steadily, peaking at 1.7 before slightly retreating. This reflects changing investor valuation multiples, initially becoming more conservative relative to sales, then more optimistic as market confidence or growth expectations improved. The rising P/S ratio towards the later periods indicates that share prices increased at a faster rate than sales per share.

Overall Insights

The analysis reveals a company experiencing strong underlying sales growth accompanied by considerable appreciation in its stock price. The upward movement of the P/S ratio suggests increasing investor confidence or market expectations of future performance beyond current sales growth. However, the observed volatility in share price indicates periods of market uncertainty or reevaluation. The consistent rise in sales per share underpins the fundamental business expansion supporting the stock's valuation increases.

The analysis of the quarterly financial data reveals several notable trends in the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the examined periods.

Share Price

The share price exhibited considerable fluctuations across the quarters. Initially, it declined from 369.44 US$ to a low near 323.83 US$ but then entered a phase of general appreciation, reaching a peak of 1010.81 US$ in February 2025. This period of growth included some intermittent declines, such as in August 2025 (914.8 US$), suggesting occasional market corrections or volatility. Overall, the upward trajectory indicates increased investor confidence or improved market valuation of the company during the long-term period.

Book Value Per Share (BVPS)

The BVPS showed a consistent upward trend throughout the timeframe, starting from 33.55 US$ and steadily advancing to 65.81 US$ by August 2025. This progression reflects continual growth in the company's net asset value per share, likely due to retained earnings accumulation or asset appreciation. The steady increase in BVPS highlights ongoing financial strengthening and enhanced shareholder equity over time.

Price-to-Book Value (P/BV) Ratio

The P/BV ratio demonstrated notable variability. Initially, it decreased from 11.01 to 9.16, suggesting the share price fell relative to book value in the earlier quarters. Following this, the ratio generally increased, peaking at 17.33 around November 2024, which signifies the market was valuing the company at a high premium compared to its book value. However, the ratio declined towards the end of the period, closing at 13.9. The fluctuations in P/BV indicate changing investor sentiment and valuation multiples, possibly influenced by broader market conditions or company-specific performance factors.

In summary, the data portray a company with increasing intrinsic book value per share and a rising stock price trend, although the market valuation relative to book value experienced ups and downs. This pattern may correspond to phases of market optimism interspersed with adjustments, reflecting dynamic investor perceptions alongside steady internal growth.