Costco stock: fundamental analysis
Stocks · COST · Consumer Defensive
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. Below are its fundamentals, explained in the order worth reading them: business quality, debt, growth and, last, whether the price is reasonable.
- Price: 895.31 USD
- Market cap: 397.1B USD
Data as of September 18, 2026 · Yahoo Finance
Quick read
Business quality
ROE of 29.2%: it earns a high return on shareholders' money. Out of every 100 in sales, 3.0 end up as profit.
Financial health
It holds more cash than debt (net debt/EBITDA of -0.9x): a very comfortable position.
Growth
Revenue is growing 11.6% year on year: a solid pace. Earnings are up 15.2%.
Valuation
It trades at a P/E of 45.1, above the 24.3 median of the consumer defensive companies we track. On expected earnings the P/E falls to 39.6: the market expects profits to rise. Paying more can be justified by faster growth or a higher-quality business.
Dividend
Dividend yield of 0.7% (5.88 USD per share per year) with a payout ratio of 27.0%.
Tools
All metrics
| Costco | Sector median | |
|---|---|---|
| Business quality | ||
| ROE | 29.2% | 29.7% |
| ROA | 8.7% | 8.8% |
| Gross margin | 12.9% | 52.5% |
| Operating margin | 4.0% | 15.6% |
| Net margin | 3.0% | 11.1% |
| Financial health | ||
| Net debt/EBITDA | -0.9x | 1.6x |
| Debt/equity | 0.2x | 0.7x |
| Current ratio | 1.1x | 1.0x |
| Growth | ||
| Revenue growth | 11.6% | 6.2% |
| Earnings growth | 15.2% | 16.9% |
| Valuation | ||
| P/E ratio | 45.1x | 24.3x |
| Forward P/E | 39.6x | 22.4x |
| EV/EBITDA | 27.9x | 17.9x |
| Price/book | 11.9x | 8.5x |
| FCF yield | 1.8% | 2.8% |
| Dividend | ||
| Dividend yield | 0.7% | 2.5% |
| Payout ratio | 27.0% | 51.7% |
| Beta (volatility) | 0.9x | 0.4x |
Frequently asked questions
What is Costco's P/E ratio?
Costco's P/E is 45.1 based on trailing 12-month earnings and 39.6 on expected earnings. The median for its sector among the companies we track is 24.3. Data as of September 18, 2026.
What dividend does Costco pay?
Dividend yield of 0.7% (5.88 USD per share per year) with a payout ratio of 27.0%.
Is Costco stock expensive?
It trades at a P/E of 45.1, above the 24.3 median of the consumer defensive companies we track. On expected earnings the P/E falls to 39.6: the market expects profits to rise. Paying more can be justified by faster growth or a higher-quality business. This is an educational reading based on ratios, not a buy or sell recommendation.
Does Costco have a lot of debt?
It holds more cash than debt (net debt/EBITDA of -0.9x): a very comfortable position.
What is Costco's market cap?
Costco has a market cap of 397.1B USD and its shares trade at 895.31 USD, with a 52-week range of 844.06 USD to 1,096.50 USD (data as of September 18, 2026).
Other companies in the sector
Trailing 12-month metrics. Educational content, not investment advice.