This means that the investors are anticipating higher growth for Costco in the future than growth for Walmart or Target. Costco Wholesale Corp. company facts, information and financial ratios from MarketWatch. The P/E ratio for BJs was bit higher at 28.47 compare to Costco’s 25.16 due to the June 2011 acquisition announcement which helped the stock price to increase 6.6% instantly and over 38% since it was put on the market the year prior (Merced, 2011). A solution to this phenomenon is to divide the price by the average inflation-adjusted earnings of the previous 10 years. Price to Sales Ratio is likely to drop to 0.73 in 2020. Trading at 20.7% below our estimate of its fair value. The P/E ratio is a popular ratio used in relative valuation since earnings power is a key driver of investment value. The Costco Wholesale PE ratio based on its reported earnings over the past 12 months is 32.16. Editor's pick . However, the CAPE ratios of different nations should not be directly compared to each other. Wholesale industry's Price to Sales ratio is at 0.86. As of 4-27-07, Costco's PE ratio is 23.75. COST Inventory Turnover Ratio Comment: Costco Wholesale Corp inventory turnover ratio sequentially increased to 12.01 in the first quarter 2020, above company average. Among the largest economies, Russia currently has the lowest Shiller PE ratio while U.S. is clearly the most expensive market when measured by this ratio. Admit it. Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. If Costco stock falls to a PE ratio in the mid-20s or lower, investors should buy in bulk. Shop Costco.ca for electronics, computers, furniture, outdoor living, appliances, jewellery and more. For one thing, earnings are reported by each company, and accounting practices are not the same across the board. The table below lists the historical and current CAPE Ratios of the largest economies in the world. There’s also the possibility that a company is inflating earnings by devaluing or hiding costs. Costco Wholesale's p/e ratio for fiscal years ending August 2015 to 2019 averaged 30.8x. Enjoy low warehouse prices on name-brands products delivered to your door. Charts. That said, shopping at a physical Costco is a little fun. P/E Ratio Ind. It is calculated by dividing a company's price per share by its earnings per share. In 2009 when earnings fell close to zero the ratio got out of whack. Yahoo Finance. Average inventory processing period, for the Costco Wholesale in Nov 22 2020 quarter, has decreased to 30 days, compare to 31 days, in the Aug 30 2020 quarter. Return on Sales is likely to drop to 0.0326 in 2020 Accumulated Other Comprehensive Income is likely to gain to about (722.6 M ) in 2020. Consolidated Income is likely to drop to about 3.2 B in 2020. If you’re trying to determine whether a stock is a good investment, the P/E ratio can help you gauge the future direction of the stock and whether the price is, relatively speaking, high or low compared to the past or other companies in the same sector. Company: 37.17 : PE TTM Industry: 46 : PE TTM Company's Price to Sales ratio is at 0.93. The PE ratio (or price-to-earnings ratio) is the one of the most popular valuation measures used by stock market investors. P/E Ratio Drawbacks. Calculate and present the PE ratio for each of the comparable firms and Costco wholesale corporation. A PE ratio is the price to earnings multiple for a stock. Use comparable firms for a PE analysis. Price to Earnings Ratio or P/E is price / earnings. Quant Ratings. The average avg p/e ratio (5y) of the companies is 5.7x with a standard deviation of 25.7x. More Details. Ultimately, it also represents the price at which people are willing to pay today for future growth. Consolidated Income is likely to drop to about 3.2 B in 2020. 63.4% of Costco Wholesale shares are held by institutional investors. 22/12/2020 17:36:56 Cookie Policy +44 (0) 203 8794 460 Free Membership Login Costco Wholesale Corporation (NASDAQ:COST) is trading with a trailing P/E of 29.7x, which is higher than the industry average of 21.4x. The following table provides additional summary stats: Costco is more expensive in regards to either of those two in terms of forward looking PE ratios. Costco Wholesale current PE on trailing twelve month basis is below Wholesale industry average. Press releases. Costco Wholesale Corp.’s interest coverage ratio improved from 2018 to 2019 and from 2019 to 2020. Costco Wholesale Corporation (COST) Value Grade and underlying metrics. News. Fixed charge coverage ratio: A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Costco Wholesale Corp. (NASDAQ : COST) ( ) COST PreMarket: $ () as of AM. received from its investee companies, are presented as net income. As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. More Zacks News for COST. Explain why the comparable firms are not identical to your firm. Costco Wholesale Corporation's Avg P/E Ratio (5y) of 31.3x ranks in the 88.5% percentile for the sector. Rewards. Over 410 companies were considered in this analysis, and 183 had meaningful values. Costco Wholesale PEG ratio is at 2.4 , above Wholesale industry PEG average of 0. Costco is twice as much successful that BJ as they respectively had a 2% vs. 1% in profit margin ratio. Costco Wholesale Price to Book Ratio is at 10.5 lower than Indusry Avg. In the world of investments, a company’s price-to-earnings ratio, or P/E ratio, is a measure of its stock price relative to its earnings. Insider & Institutional Ownership. Costco's PE ratio, at 25.56, is higher than Walmart's 14.98 or Target's 15.67. Stock analysis for Costco Wholesale Corp (COST:NASDAQ GS) including stock price, stock chart, company news, key statistics, fundamentals and company profile. The PE ratio of the S&P 500 divides the index (current market price) by the reported earnings of the trailing twelve months. Earnings are forecast to grow 7.82% per year. Although some investors may jump to … Compounded. Costco Wholesale Corp.’s fixed charge coverage ratio improved from 2018 to 2019 and from 2019 to 2020. PE ratios, EBITDA, EPS, cash flow, ROE. About PE Ratio (TTM) Costco Wholesale has a trailing-twelve-months P/E of 39X compared to the Retail - Discount Stores industry's P/E of 19.85X. 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