Costco Wholesale Corporation

SNSE:COST Stock Report

Market Cap: US$394.1b

Costco Wholesale Valuation

Is COST 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 COST when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: COST ($850.45) is trading above our estimate of fair value ($785.63)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

COST 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/Revenue1.5x
Enterprise Value/EBITDA34.1x
PEG Ratio7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for COST vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27x
CENCOSUD Cencosud
30.8x37.4%CL$5.5t
WMT Walmart
42x12.4%US$653.6b
TGT Target
16.1x5.1%US$72.3b
WALMEX * Wal-Mart de México. de
19.2x9.4%Mex$1.0t
COST Costco Wholesale
53.5x7.6%US$394.1b

Price-To-Earnings vs Peers: COST is expensive based on its Price-To-Earnings Ratio (53.5x) compared to the peer average (27x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.2%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.2%
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No more companies

Price-To-Earnings vs Industry: COST is expensive based on its Price-To-Earnings Ratio (53.5x) compared to the South American Consumer Retailing industry average (16.7x).

Price to Earnings Ratio vs Fair Ratio

What is COST'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.

COST PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio53.5x
Fair PE Ratio26.2x

Price-To-Earnings vs Fair Ratio: COST is expensive based on its Price-To-Earnings Ratio (53.5x) compared to the estimated Fair Price-To-Earnings Ratio (26.2x).

Analyst Price Targets

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

The above table shows the analyst COST forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$850.45
US$930.02
+9.4%
10.9%US$1,065.00US$510.00n/a31
Oct ’25US$850.45
US$924.92
+8.8%
10.6%US$1,050.00US$510.00n/a31
Sep ’25US$850.45
US$881.58
+3.7%
11.2%US$1,050.00US$510.00n/a30
Aug ’25US$850.45
US$882.61
+3.8%
11.3%US$1,050.00US$510.00n/a30
Jul ’25US$850.45
US$844.19
-0.7%
10.4%US$975.00US$510.00n/a30
Jun ’25US$796.25
US$823.86
+3.5%
9.9%US$940.00US$500.00n/a30
May ’25US$721.30
US$776.41
+7.6%
9.4%US$870.00US$500.00n/a31
Apr ’25US$678.61
US$760.99
+12.1%
12.4%US$905.00US$500.00n/a32
Mar ’25US$678.61
US$707.52
+4.3%
11.5%US$825.00US$480.00n/a33
Feb ’25US$678.61
US$670.19
-1.2%
10.3%US$782.00US$480.00n/a33
Jan ’25US$673.93
US$659.42
-2.2%
9.9%US$745.00US$480.00n/a34
Dec ’24US$578.00
US$602.67
+4.3%
7.9%US$680.00US$460.00n/a33
Nov ’24US$557.43
US$592.82
+6.3%
7.8%US$680.00US$460.00n/a33
Oct ’24US$557.43
US$586.62
+5.2%
8.3%US$680.00US$450.00US$850.4533
Sep ’24US$557.43
US$569.06
+2.1%
8.7%US$651.00US$478.00US$850.4532
Aug ’24US$565.50
US$553.44
-2.1%
7.6%US$635.00US$475.00US$850.4532
Jul ’24US$486.36
US$548.75
+12.8%
7.0%US$635.00US$475.00US$850.4532
Jun ’24US$486.36
US$546.16
+12.3%
6.9%US$635.00US$475.00US$796.2531
May ’24US$486.36
US$548.35
+12.7%
7.2%US$635.00US$475.00US$721.3031
Apr ’24US$486.36
US$546.88
+12.4%
7.3%US$635.00US$475.00US$678.6132
Mar ’24US$509.98
US$550.74
+8.0%
8.0%US$635.00US$472.00US$678.6131
Feb ’24US$485.95
US$551.43
+13.5%
8.3%US$635.00US$450.00US$678.6130
Jan ’24US$523.50
US$548.13
+4.7%
8.9%US$650.00US$450.00US$673.9330
Dec ’23US$523.50
US$557.41
+6.5%
8.4%US$650.00US$455.00US$578.0027
Nov ’23US$584.00
US$560.44
-4.0%
8.1%US$650.00US$455.00US$557.4327
Oct ’23US$584.00
US$563.00
-3.6%
9.1%US$678.00US$454.00US$557.4328

Analyst Forecast: Target price is less than 20% higher than the current share price.

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