Costco Wholesale Valuation

Is COWC34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of COWC34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: COWC34 (R$139.58) is trading above our estimate of fair value (R$93.62)

Significantly Below Fair Value: COWC34 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for COWC34?

Key metric: As COWC34 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for COWC34. This is calculated by dividing COWC34's market cap by their current earnings.
What is COWC34's PE Ratio?
PE Ratio	58x
Earnings	US$7.37b
Market Cap	US$427.13b

COWC34 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.7x
Enterprise Value/EBITDA	37x
PEG Ratio	7.1x

Price to Earnings Ratio vs Peers

How does COWC34's PE Ratio compare to its peers?

The above table shows the PE ratio for COWC34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	26.1x
GMAT3 Grupo Mateus	12.1x	15.9%	R$16.0b
ASAI3 Sendas Distribuidora	15.3x	32.3%	R$9.7b
WMT Walmart	36.9x	8.9%	US$727.0b
RADL3 Raia Drogasil	40.2x	24.8%	R$44.6b
COWC34 Costco Wholesale	58x	8.2%	R$427.1b

Price-To-Earnings vs Peers: COWC34 is expensive based on its Price-To-Earnings Ratio (58x) compared to the peer average (26.1x).

Price to Earnings Ratio vs Industry

How does COWC34's PE Ratio compare vs other companies in the South American Consumer Retailing Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: COWC34 is expensive based on its Price-To-Earnings Ratio (58x) compared to the South American Consumer Retailing industry average (15.4x).

Price to Earnings Ratio vs Fair Ratio

What is COWC34's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

COWC34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	58x
Fair PE Ratio	38x

Price-To-Earnings vs Fair Ratio: COWC34 is expensive based on its Price-To-Earnings Ratio (58x) compared to the estimated Fair Price-To-Earnings Ratio (38x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.