Costco Wholesale Corp (COST) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Costco Wholesale Corp stock (COST) is currently trading at $974.86. Costco Wholesale Corp PE ratio is 50.67. Costco Wholesale Corp PS ratio (Price-to-Sales) is 1.51. Analyst consensus price target for COST is $1067.09. WallStSmart rates COST as Underperform.
Costco Wholesale Corp (COST) stock price prediction for 2030: Base case $780.12. Bull case $975.15. Bear case $585.09. See full COST 2030 price forecast and methodology on WallStSmart.
- COST PE ratio analysis and historical PE chart
- COST PS ratio (Price-to-Sales) history and trend
- COST intrinsic value — DCF, Graham Number, EPV models
- COST stock price prediction 2025 2026 2027 2028 2029 2030
- COST fair value vs current price
- COST insider transactions and insider buying
- Is COST undervalued or overvalued?
- Costco Wholesale Corp financial analysis — revenue, earnings, cash flow
- COST Piotroski F-Score and Altman Z-Score
- COST analyst price target and Smart Rating
Costco Wholesale Corp
📊 No data available
Try selecting a different time range
COST Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Costco Wholesale Corp (COST)
COST trades 75% above its Graham fair value of $558.15, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Costco Wholesale Corp (COST) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, return on equity, price/sales. Concerns around peg ratio and operating margin. Fundamentals are solid but monitor weak areas for improvement.
Costco Wholesale Corp (COST) Key Strengths (4)
Mega-cap company, among the largest in the world
Every $100 of shareholder equity generates $30 in profit
72.67% of shares held by major funds and institutions
Paying $1.51 for every $1 of annual revenue
Supporting Valuation Data
Costco Wholesale Corp (COST) Areas to Watch (6)
Near-zero operating margins, business under pressure
Very expensive relative to growth, significant premium
Very expensive at 13.5x book value
Very thin margins, barely profitable
Modest revenue growth at 9.20%
Solid earnings growth at 13.90%
Supporting Valuation Data
Costco Wholesale Corp (COST) Detailed Analysis Report
Overall Assessment
This company scores 53/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.5/10) while 6 fall into concern territory (avg 2.8/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Market Cap, Return on Equity, Institutional Own.. Valuation metrics including Price/Sales (1.51) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 29.60%.
The Bear Case
The primary concerns are Operating Margin, PEG Ratio, Price/Book. Some valuation metrics including PEG Ratio (5.41), Price/Book (13.46) suggest expensive pricing. Growth concerns include Revenue Growth at 9.20%, EPS Growth at 13.90%, which may limit upside. Profitability pressure is visible in Operating Margin at 3.74%, Profit Margin at 2.99%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Operating Margin improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 29.60% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 9.20% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Market Cap, Return on Equity) and negatives (Operating Margin, PEG Ratio). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
COST Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
COST's Price-to-Sales ratio of 1.51x trades 190% above its historical average of 0.52x (97th percentile), historically expensive. The current valuation is 5% below its historical high of 1.59x set in Mar 2026, and 481% above its historical low of 0.26x in Feb 2009.
WallStSmart Analysis Synopsis
Data-driven financial summary for Costco Wholesale Corp (COST) · CONSUMER DEFENSIVE › DISCOUNT STORES
The Big Picture
Costco Wholesale Corp operates as a stable business with moderate growth and solid fundamentals. Revenue reached 286.3B with 9% growth year-over-year. Profit margins are thin at 3.0%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
ROE of 29.6% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 1.7B in free cash flow and 3.0B in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can Costco Wholesale Corp push profit margins above 15% as the business scales?
Valuation compression risk at a P/E of 50.7x. Any growth miss could trigger a sharp correction.
Sector dynamics: monitor DISCOUNT STORES industry trends, competitive moves, and regulatory changes that could impact Costco Wholesale Corp.
Bottom Line
Costco Wholesale Corp offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
Loading insider activity...
About Costco Wholesale Corp(COST)
NASDAQ
CONSUMER DEFENSIVE
DISCOUNT STORES
USA
Costco Wholesale Corporation (doing business as Costco Wholesale and also known simply as Costco) is an American multinational corporation which operates a chain of membership-only (needing a membership to shop there) big-box retail stores. As of 2020, Costco was the fifth largest retailer in the world, and the world's largest retailer of choice and prime beef, organic foods, rotisserie chicken, and wine as of 2016.