Added to YB: 2026-08-03
Pitch date: 2026-07-30
COST [neutral]
Costco Wholesale Corporation
+0.65%
current return
Author Info
No bio for this author
Company Info
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden.
Market Cap
$422.1B
Pitch Price
$945.74
Price Target
N/A
Dividend
0.62%
EV/EBITDA
28.80
P/E
47.88
EV/Sales
1.40
Sector
Consumer Staples Distribution and Retail
Category
value
Great Business, Bad Stock? Valuing Costco with Fajasy
COST (overview): Great business, demanding valuation. At ~$949, ~78% of price depends on long-term growth vs $210 no-growth value; BVPS ~$66, ROE 28-31%. Model implies 8.5% perpetual residual earnings growth. Reverse DCF needs 11-13% FCF/share growth. CAP model supports only ~51% of EV over 20yrs, leaving ~$196.7B gap. Trades 46x P/FCF. Priced for perfection.
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