COST Relative Valuation
COST's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, COST is overvalued; if below, it's undervalued.
Historical Valuation
Costco Wholesale Corp (COST) is now in the Fair zone, suggesting that its current forward PE ratio of 44.61 is considered Fairly compared with the five-year average of 40.68. The fair price of Costco Wholesale Corp (COST) is between 678.53 to 908.33 according to relative valuation methord.
Relative Value
Fair Zone
678.53-908.33
Current Price：895.86
Fair
44.61
PE
1Y
3Y
5Y
Trailing
Forward
28.32
EV/EBITDA
Costco Wholesale Corp. (COST) has a current EV/EBITDA of 28.32. The 5-year average EV/EBITDA is 24.27. The thresholds are as follows: Strongly Undervalued below 14.68, Undervalued between 14.68 and 19.47, Fairly Valued between 29.06 and 19.47, Overvalued between 29.06 and 33.85, and Strongly Overvalued above 33.85. The current Forward EV/EBITDA of 28.32 falls within the Historic Trend Line -Fairly Valued range.
35.02
EV/EBIT
Costco Wholesale Corp. (COST) has a current EV/EBIT of 35.02. The 5-year average EV/EBIT is 30.41. The thresholds are as follows: Strongly Undervalued below 18.84, Undervalued between 18.84 and 24.63, Fairly Valued between 36.20 and 24.63, Overvalued between 36.20 and 41.98, and Strongly Overvalued above 41.98. The current Forward EV/EBIT of 35.02 falls within the Historic Trend Line -Fairly Valued range.
1.38
PS
Costco Wholesale Corp. (COST) has a current PS of 1.38. The 5-year average PS is 1.12. The thresholds are as follows: Strongly Undervalued below 0.60, Undervalued between 0.60 and 0.86, Fairly Valued between 1.38 and 0.86, Overvalued between 1.38 and 1.64, and Strongly Overvalued above 1.64. The current Forward PS of 1.38 falls within the Historic Trend Line -Fairly Valued range.
34.52
P/OCF
Costco Wholesale Corp. (COST) has a current P/OCF of 34.52. The 5-year average P/OCF is 27.85. The thresholds are as follows: Strongly Undervalued below 14.63, Undervalued between 14.63 and 21.24, Fairly Valued between 34.46 and 21.24, Overvalued between 34.46 and 41.07, and Strongly Overvalued above 41.07. The current Forward P/OCF of 34.52 falls within the Overvalued range.
57.53
P/FCF
Costco Wholesale Corp. (COST) has a current P/FCF of 57.53. The 5-year average P/FCF is 41.41. The thresholds are as follows: Strongly Undervalued below 19.37, Undervalued between 19.37 and 30.39, Fairly Valued between 52.43 and 30.39, Overvalued between 52.43 and 63.45, and Strongly Overvalued above 63.45. The current Forward P/FCF of 57.53 falls within the Overvalued range.
Costco Wholesale Corp (COST) has a current Price-to-Book (P/B) ratio of 13.62. Compared to its 3-year average P/B ratio of 13.85 , the current P/B ratio is approximately -1.68% higher. Relative to its 5-year average P/B ratio of 12.82, the current P/B ratio is about 6.18% higher. Costco Wholesale Corp (COST) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.01%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.32% , the current FCF yield is about -100.00% lower.
13.62
P/B
Median3y
13.85
Median5y
12.82
1.92
FCF Yield
Median3y
2.01
Median5y
2.32
Competitors Valuation Multiple
The average P/S ratio for COST's competitors is , providing a benchmark for relative valuation. Costco Wholesale Corp Corp (COST) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 8.10%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of COST decreased by 2.23% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 79.70B to 86.16B.
The secondary factor is the Margin Expansion, contributed 2.71%to the performance.
Overall, the performance of COST in the past 1 year is driven by Revenue Growth. Which is more sustainable.
People Also Watch
FAQ
Is Costco Wholesale Corp (COST) currently overvalued or undervalued?
What is Costco Wholesale Corp (COST) fair value?
How does COST's valuation metrics compare to the industry average?
What is the current P/B ratio for Costco Wholesale Corp (COST) as of Dec 05 2025?
What is the current FCF Yield for Costco Wholesale Corp (COST) as of Dec 05 2025?
What is the current Forward P/E ratio for Costco Wholesale Corp (COST) as of Dec 05 2025?