Added to YB: 2025-03-25
Pitch date: 2025-03-22
COST [neutral]
Costco Wholesale Corporation
-3.47%
current return
Author Info
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
$388.2B
Pitch Price
$916.24
Price Target
359.00 (-59%)
Dividend
0.59%
EV/EBITDA
28.87
P/E
48.02
EV/Sales
1.39
Sector
Consumer Staples Distribution and Retail
Category
value
Costco Wholesale Corp. ($COST): A Discounted Cash Flow (DCF) Approach
COST (overvalued): Outstanding business model, consistent growth & profitability. DCF valuation suggests significant overvaluation at $909 vs $359 intrinsic value. Reverse engineering shows unrealistic scenarios needed to justify price: 150 new warehouses/year, 4x membership fees, or margin expansion contrary to core strategy.
Read full article (8 min)