Costco Wholesale Corporation

DB:CTO Stock Report

Market Cap: €451.7b

Costco Wholesale Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Discounted Cash Flow
Simply Wall St
€1.09k
Fair Value
6.3% undervalued intrinsic discount
32
Number of Analysts

Below Fair Value: CTO (€1017.4) is trading below our estimate of fair value (€1085.33)

Significantly Below Fair Value: CTO is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CTO. This is calculated by dividing CTO's market cap by their current earnings.
What is CTO's PE Ratio?
PE Ratio61.2x
EarningsUS$7.58b
Market CapUS$466.53b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CTO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.3x
WMT Walmart
41.3x9.4%US$826.2b
TGT Target
13.8x5.0%US$61.7b
WALMEX * Wal-Mart de México. de
18x9.5%Mex$969.3b
DG Dollar General
11.9x7.5%US$16.0b
CTO Costco Wholesale
61.2x8.3%€466.5b

Price-To-Earnings vs Peers: CTO is expensive based on its Price-To-Earnings Ratio (61.2x) compared to the peer average (21.3x).

Price to Earnings Ratio vs Industry

How does CTO's PE Ratio compare vs other companies in the European Consumer Retailing Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CTO 61.2xIndustry Avg. 15.4xNo. of Companies9PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CTO is expensive based on its Price-To-Earnings Ratio (61.2x) compared to the European Consumer Retailing industry average (15.4x).

Price to Earnings Ratio vs Fair Ratio

What is CTO'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.

CTO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio61.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CTO's Price-To-Earnings Fair Ratio for valuation analysis.

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 CTO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€1,017.40
€996.13
-2.1%
11.0%€1,131.17€539.11n/a32
Feb ’26€941.70
€988.52
+5.0%
11.8%€1,140.57€543.59n/a32
Jan ’26€900.80
€985.96
+9.5%
11.1%€1,126.94€537.10n/a32
Dec ’25€921.00
€902.58
-2.0%
10.9%€1,032.32€518.56n/a32
Nov ’25€803.00
€864.78
+7.7%
10.4%€986.62€500.26n/a32
Oct ’25€802.00
€830.67
+3.6%
10.6%€943.01€458.03n/a31
Sep ’25€804.70
€806.56
+0.2%
11.2%€960.65€466.60n/a30
Aug ’25€754.40
€809.97
+7.4%
11.3%€963.59€468.03n/a30
Jul ’25€794.00
€786.19
-1.0%
10.4%€908.02€474.96n/a30
Jun ’25€735.00
€759.43
+3.3%
9.9%€866.49€460.90n/a30
May ’25€677.10
€728.89
+7.6%
9.4%€816.76€469.40n/a31
Apr ’25€675.40
€702.62
+4.0%
12.4%€835.59€461.65n/a32
Mar ’25€690.00
€652.90
-5.4%
11.5%€761.31€442.94n/a33
Feb ’25€644.10
€618.12
-4.0%
10.3%€721.24€442.70€941.7033
Jan ’25€597.60
€595.79
-0.3%
9.9%€673.11€433.68€900.8034
Dec ’24€541.70
€553.73
+2.2%
7.9%€624.78€422.65€921.0033
Nov ’24€522.40
€555.95
+6.4%
7.8%€637.70€431.39€803.0033
Oct ’24€539.30
€555.42
+3.0%
8.3%€643.82€426.06€802.0033
Sep ’24€506.60
€524.50
+3.5%
8.7%€600.03€440.57€804.7032
Aug ’24€510.00
€503.30
-1.3%
7.6%€577.47€431.97€754.4032
Jul ’24€492.35
€503.81
+2.3%
7.0%€582.99€436.10€794.0032
Jun ’24€469.30
€509.08
+8.5%
6.9%€591.88€442.75€735.0031
May ’24€453.05
€499.83
+10.3%
7.2%€578.80€432.96€677.1031
Apr ’24€454.30
€501.43
+10.4%
7.3%€582.23€435.53€675.4032
Mar ’24€449.00
€519.18
+15.6%
8.0%€598.61€444.95€690.0031
Feb ’24€466.00
€501.97
+7.7%
8.3%€578.04€409.64€644.1030
Analyst Price Target
Consensus Narrative from 32 Analysts
€1.01k
Fair Value
0.9% overvalued intrinsic discount
32
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/07 02:40
End of Day Share Price 2025/02/07 00:00
Earnings2024/11/24
Annual Earnings2024/09/01

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Costco Wholesale Corporation is covered by 68 analysts. 33 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Christopher GrajaArgus Research Company
Peter BenedictBaird
Ishan MajumdarBaptista Research