# Costco Wholesale Corporation (COST) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Consumer Defensive / Household Products. Price $915.74, market value $406.1 billion.

## Valuation
- **P/E (trailing): 46.1×** (5-yr avg 43.6×, 3-yr avg 47.2×). Costco Wholesale Corporation trades at 46.1× trailing earnings, close to its own five-year average of 43.6×. The Consumer Defensive median in the September 2026 study was 20.1×. Forward P/E is 40.5×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 4.06**. A PEG of 4.06 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 1.4×**. Each dollar of revenue is priced at 1.4×.
- **Price / book: 24.6×**. The shares trade at 24.6× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 29.1×**. Enterprise value is 29.1× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 1.9%** (5-yr avg 2.2%). Free cash flow equals 1.9% of the market value, in line with its five-year average of 2.2%.
- **Earnings yield: 2.2%**. The inverse of the P/E: 2.2% of the price is earned each year.

## Profitability
- **Operating margin: 3.8%**. 3.8% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 2.9%**. 2.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 27.8%**. 27.8% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 42.7%**. Return on all capital, debt included, is 42.7%: comfortably above what that capital costs.
- **Return on assets: 11.5%**. Each dollar of assets produces 11.5% of profit.

## Growth
- **Revenue growth (1 yr): 8.2%** (3-yr 6.6%/yr, 5-yr 10.5%/yr). Revenue grew 8.2% over the last year, against 10.5% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 10.0%** (3-yr 11.5%/yr, 5-yr 15.1%/yr). Earnings per share rose 10.0%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 30.8%/yr**. Free cash flow has compounded at 30.8% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.20**. Debt is 0.20 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Costco Wholesale Corporation holds more cash than debt.
- **Altman Z-score: 9.63**. A Z-score of 9.63 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.64%** ($5.37 per share, trailing). Costco Wholesale Corporation yields 0.64%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 27%** (28% of free cash flow). 27% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Dividend growth (5 yr): -16.9%/yr** (1-yr 12.4%). The dividend has not grown over five years.

## Analyst view
- **Analyst consensus: buy** (35 analysts). 35 analysts cover Costco Wholesale Corporation; the consensus is buy, with an average price target of $1077.31 (+18% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -3.6%** (YTD 6.7%, 3-mo -5.6%). The shares are down 3.6% over twelve months including dividends.
- **From 52-week high: -16.5%** (8.5% above the low). Trading 16% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 38**. An RSI of 38 is neutral.
- **Beta (1 yr): -0.11** (volatility 20%). Beta of -0.11 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=COST · Page: https://foliofundamentals.com/stocks/cost

Not investment advice.