Costco Wholesale Corp
NASDAQ:COST
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Costco Wholesale Corp
NASDAQ:COST
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US |
Intrinsic Value
The intrinsic value of Costco Wholesale Corp (COST) under the Base Case is 832.2 USD per share.
Compared with the current market price of 992.43 USD, the stock appears
Overvalued by 16% .
The intrinsic value is calculated using the DCF method. The model assumes Costco's revenue grows about 7.9% a year over the next five years, slower than its 9.1% pace over the last five. If revenue growth repeated that past pace, the estimate would be about $991.
Do our valuations actually work? See backtest results .
Cheap or expensive for this stock?
This block shows whether today’s valuation is cheap or expensive compared with the stock’s own history, and what happened after similar valuations in the past.
We compare the gap between the stock’s price and our estimated value over time.
- Undervalued can still be historically expensive. The stock may trade below our estimated value, but usually offer an even bigger discount.
- Overvalued can still be historically cheap. The stock may trade above our estimated value, but usually carry an even higher premium.
Market expectations can differ from our model, which may not fully capture everything affecting the price. That is why some stocks regularly trade above our estimated value and others below it.
The scale and chart show how today’s valuation compares with the past. The cards summarize past returns and waiting times until the stock stopped being cheap or expensive. This can happen because the price changed, our estimated value changed, or both.
Only completed periods are included. These are past results, not forecasts. The usual historical range does not necessarily mean fair value.
Fundamental Analysis
What Costco Wholesale Does
Costco Wholesale runs membership warehouse clubs that sell groceries, household goods, electronics, apparel, and many other everyday items in large pack sizes. It also offers services such as pharmacy, optical care, gasoline, tires, and travel bookings in many locations. Its main customers are households and small businesses that want low prices and are willing to buy in bulk.
- Headquarters
- United States of America US
- Employees
- 341 000
- IPO date
- Dec 5, 1985
Costco Wholesale has a wide economic moat
Buying huge quantities of a limited selection and moving goods through simple warehouses lets Costco keep prices low while remaining profitable. Matching that combination requires purchasing volume and operating efficiency that smaller retailers cannot easily build.
Read the full moat analysisLatest Earnings Call
Costco is returning tariff refunds through lower prices while expanding digital access, with management emphasizing member engagement as well as membership growth.
- EPS
- $6.60
- Expected
- $6.48
- Surprise
- +1.9%
- Stock, next trading day
- +2.9%
Revenue & Expenses Breakdown
Costco Wholesale Corp
Earnings Waterfall
Costco Wholesale Corp
The intrinsic value for Costco Wholesale Corp (COST) under the Base Case is 832.2 USD.
Compared with the current market price of 992.43 USD, the stock appears Overvalued by 16% .