Consumer Staples · Consumer Staples Merchandise Retail · US stock · price as of 16 Oct 2026
Key indicators
Price
$989.11
52-week range
$840.35 – $1,094.76
Market cap
$439.6B
P/E (trailing)
47.6×
EV / EBITDA
29.6×
Free-cash-flow yield
2.1%
Dividend yield
0.6%
Revenue (last 12 months)
$303.2B
Revenue growth (3y a year)
7.8%
Operating margin
3.9%
Return on invested capital
39.7%
Net debt / EBITDA
-0.9×
Fair value
Blended fair value$675.08 range $637 – $720
Versus priceOvervalued−32% to fair value
Peer multiples
$499.45
Fundamentals-adjusted multiple
$725.29
10-year DCF (market-scaled)
$800.51
Earnings power value (floor, not blended)
$260.79
Model uncertainty
Medium
X-Ray Score
57/ 100 · High confidence · ahead of 69% of sector peers
Valuation13
Growth80
Profitability74
Financial health69
Dividends51
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Costco operates membership-based warehouse clubs in the United States and several other countries. Members pay an annual fee to shop for groceries, household goods, electronics and other merchandise, sold in bulk at relatively low markups, including products under the Kirkland Signature label. Membership fees make up a notable portion of operating profit, while merchandise sales produce most of the revenue and keep customers returning.
Costco Wholesale Corp generated $303.2 billion of revenue in the last twelve months, with sales that grew 7.8% a year over the past three years. Net debt to EBITDA is -0.9 times, which means cash exceeds debt. The operating margin is 3.9% and the return on invested capital is 40%. A dividend is paid, with a yield of 0.6%.
StocksXray gives Costco Wholesale Corp an X-Ray Score of 57 out of 100 (high confidence), ahead of 69% of the S&P 500 stocks in its sector. Its strongest lens is growth (80) and its weakest is valuation (13).
Our fair value blend is $675.08 (range $636.70 to $719.66). At $989.11 the stock trades 47% above that blend, so the label is "Overvalued" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Costco Wholesale Corp (COST)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2022
FY2023
FY2024
FY2025
FY2026
Now
Price
$507.27
$523.04
$882.67
$937.85
$945.47
$989.11
Market cap
$225.6B
$232.5B
$392.6B
$417.2B
$420.2B
$439.6B
P/E
38.6×
36.9×
53.3×
51.5×
45.5×
47.6×
EV / revenue
1.0×
0.9×
1.5×
1.5×
1.3×
1.4×
EV / EBITDA
22.8×
21.9×
33.6×
31.8×
28.2×
29.6×
Price / free cash flow
64.4×
34.5×
59.2×
53.2×
44.8×
46.9×
Free-cash-flow yield
1.6%
2.9%
1.7%
1.9%
2.2%
2.1%
Price / book
10.9×
9.3×
16.6×
14.3×
11.7×
12.3×
Dividend yield
–
0.73%
2.19%
0.52%
0.59%
0.56%
Fundamentals checklist ● 7 Good · ● 5 Average · ● 4 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−7.4%Good
Free-cash-flow yield2.1%Bad
Risk models
Altman Z score2.8×Average
Piotroski F-Score6 of 9Average
Growth
EPS growth (3y)13.6%Good
Free-cash-flow growth (3y)11.6%Average
Revenue growth (3y)7.8%Good
Growth consistency100%Good
Balance sheet
Current ratio1.1×Average
Net debt / EBITDA-0.9×Good
Interest coverno interest costGood
Valuation
Fair value vs price0.7×Bad
EBIT / EV yield2.7%Bad
Profitability
Return on invested capital39.7%Good
Operating margin3.9%Bad
Gross profitability43.7%Average
XStocksXray
Costco Wholesale Corp (COST)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY22
FY23
FY24
FY25
FY26
LTM
Revenue
226,954
242,290
254,453
275,235
303,154
303,154
Gross profit
27,572
29,704
32,095
35,349
38,875
38,875
Operating income
7,793
8,114
9,285
10,383
11,685
11,685
Net income
5,844
6,292
7,367
8,099
9,226
9,226
Diluted EPS ($)
13.14
14.16
16.56
18.21
20.76
20.76
Free cash flow
3,501
6,745
6,629
7,837
9,382
9,382
Gross margin
12.1%
12.3%
12.6%
12.8%
12.8%
12.8%
Operating margin
3.4%
3.3%
3.6%
3.8%
3.9%
3.9%
Net margin
2.6%
2.6%
2.9%
2.9%
3.0%
3.0%
Balance sheet
FY22
FY23
FY24
FY25
FY26
LTM
Total assets
64,166
68,994
69,831
77,099
89,045
89,045
Cash
10,203
13,700
9,906
14,161
20,207
20,207
Total debt
6,557
6,458
5,897
5,788
6,162
6,162
Equity
20,642
25,058
23,622
29,164
35,803
35,803
Dividend per share ($)
–
3.84
19.36
4.92
5.54
–
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.