January 06, 2026 a 08:00 am
COST: Fundamental Ratio Analysis - Costco Wholesale Corporation
Costco Wholesale Corporation, with its widespread global operations and diversified product offerings, stands as a dominant force in the membership warehouse sector. The stock has shown consistent growth, reflecting its robust business model and strategic expansion plans. Investors should consider both its current valuation metrics and profitability ratios when evaluating Costco.
Fundamental Rating
Costco's fundamental ratings showcase strong profitability metrics but highlight areas for improvement concerning valuation ratios.
| Category | Rating | Score |
|---|---|---|
| Discounted Cash Flow | 3 | |
| Return on Equity | 5 | |
| Return on Assets | 5 | |
| Debt to Equity | 3 | |
| Price to Earnings | 1 | |
| Price to Book | 1 |
Historical Rating
The historical data provides insights into Costco's stable score performance over the recent past.
| Date | Overall | DCF | ROE | ROA | Debt/Equity | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2026-01-05 | 3 | 3 | 5 | 5 | 3 | 1 | 1 |
| Historical | 0 | 3 | 5 | 5 | 3 | 1 | 1 |
Analyst Price Targets
Analysts' price targets indicate a bullish outlook with a significant range between high and low estimates.
| High | Low | Median | Consensus |
|---|---|---|---|
| $1,171 | $769 | $1,012.5 | $1,023.5 |
Analyst Sentiments
The current consensus among analysts is a strong 'Buy' recommendation, with the majority supporting this stance.
| Recommendation | Count | Percentage |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 37 | |
| Hold | 19 | |
| Sell | 1 | |
| Strong Sell | 0 |
Conclusion
Costco Wholesale Corporation maintains a strong market position with solid profitability metrics, as highlighted by its return on equity and assets. However, current valuation ratios suggest potential overvaluation concerns. Analyst sentiments remain positive, providing a strong 'Buy' consensus that underscores confidence in future performance. While investing, consider external market factors that may impact the retail sector at large. Overall, Costco offers potential opportunities for long-term growth investors, but vigilance is required regarding potential valuation risks.