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COSTCostco Wholesale Corporation
$1053.56$467.2B
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  4. Financial Ratios

Costco Wholesale Corporation (COST) Financial Ratios

Latest Ratios: P/E Ratio 50.7x · EV/EBITDA 31.7x · ROE 28.4%. (1997–2026 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

COST Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Market Cap$467.2B$420.2B$419.6B$396.9B$241.9B$236.5B$200.1B$154.6B$130.6B$103.0B$69.1B
Enterprise Value$455.6B$408.6B$415.7B$396.9B$238.7B$237.2B$200.3B$153.5B$129.0B$103.5B$71.2B
P/E Ratio →50.7445.5451.8053.8938.4440.4739.9638.6235.6932.8825.78
P/S Ratio1.541.391.521.561.001.041.020.930.850.730.54
P/B Ratio13.0811.7414.3916.809.6511.4611.078.278.387.866.24
P/FCF49.7644.7553.5459.8735.8667.5637.2625.5638.8836.7216.36
P/OCF29.5226.5531.4735.0021.8632.0022.3417.4520.5417.8410.28

P/E links to full P/E history page with 30-year chart

COST EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
EV / Revenue—1.351.511.560.991.051.020.920.840.730.55
EV / EBITDA31.7328.4532.4534.4523.4324.4723.5921.6720.7117.5012.99
EV / EBIT38.9934.9637.8840.0627.6129.6629.2327.7626.2522.5017.07
EV / FCF—43.5153.0459.8835.3967.7637.2925.3638.4136.9116.86

COST Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Gross Margin12.8%12.8%12.8%12.6%12.3%12.1%12.9%13.1%13.0%13.0%13.3%
Operating Margin3.9%3.9%3.8%3.6%3.3%3.4%3.4%3.3%3.1%3.2%3.2%
Net Profit Margin3.0%3.0%2.9%2.9%2.6%2.6%2.6%2.4%2.4%2.2%2.1%

Return on Capital

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
ROE28.4%28.4%30.7%30.3%27.5%30.2%27.2%23.3%25.5%25.9%22.9%
ROA11.1%11.1%11.0%10.6%9.5%9.5%8.7%7.9%8.5%8.1%7.7%
ROIC35.5%35.5%31.9%30.6%28.1%29.5%28.2%25.9%25.7%25.1%22.6%
ROCE27.5%27.5%27.9%26.6%24.0%25.1%22.2%20.6%22.0%22.5%22.6%

COST Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Debt / Equity0.240.240.350.420.420.530.630.590.440.500.60
Debt / EBITDA0.600.600.800.861.031.131.341.571.101.111.21
Net Debt / Equity—-0.32-0.140.00-0.130.030.01-0.06-0.100.040.19
Net Debt / EBITDA-0.81-0.81-0.310.00-0.310.070.02-0.17-0.250.090.39
Debt / FCF—-1.24-0.500.01-0.470.200.03-0.20-0.460.190.50
Interest Coverage80.5980.5971.2558.6354.0450.6240.0634.5432.7728.9431.14

Net cash position: cash ($20.2B) exceeds total debt ($8.6B)

COST Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Current Ratio1.061.061.030.971.071.021.001.131.011.020.99
Quick Ratio0.620.620.550.440.570.460.520.640.520.460.43
Cash Ratio0.480.480.410.310.450.350.410.540.410.360.33
Asset Turnover—3.403.573.643.513.543.313.003.363.473.55
Inventory Turnover13.6813.6813.2411.9212.7711.1312.0111.8411.6611.1611.38
Days Sales Outstanding—4.774.253.903.443.603.363.393.674.304.05

COST Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Dividend Yield0.5%0.6%0.5%2.3%0.5%0.6%2.9%1.0%0.8%0.7%5.6%
Payout Ratio26.6%26.6%27.0%122.7%19.9%25.6%114.8%37.0%28.4%22.0%145.7%

Total Shareholder Return Metrics

MetricTTMFY 2026FY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017
Earnings Yield2.0%2.2%1.9%1.9%2.6%2.5%2.5%2.6%2.8%3.0%3.9%
FCF Yield2.0%2.2%1.9%1.7%2.8%1.5%2.7%3.9%2.6%2.7%6.1%
Buyback Yield0.2%0.2%0.2%0.2%0.3%0.2%0.2%0.1%0.2%0.3%0.7%
Total Shareholder Yield0.7%0.8%0.7%2.5%0.8%0.8%3.1%1.1%1.0%1.0%6.3%
Shares Outstanding—$444M$445M$445M$444M$445M$444M$444M$443M$442M$441M

Key Metrics

Growth RegimeAccelerating
ProfitabilityStable
Balance SheetFortress
Cash FlowRobust
Top Statement Risk

Sustainability of anomalous Q4 margin

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q4)

Extreme Premium to Peer Multiples

Based on current market data, Costco's forward P/E of 43.70 and EV/EBITDA of 25.36 represent a substantial premium to the peer median of ~29 and ~12.6, respectively, suggesting the market prices exceptional growth and stability that may be difficult to deliver.

The valuation multiples imply a growth expectation far above the peer group, yet Costco's historical return on equity and capital do not justify such a significant discount rate differential. The PEG ratio of 3.26 indicates investors are paying a steep price for each unit of expected growth, leaving minimal margin for error in execution.

Structurally Low Margins with Q4 Anomaly

As reported in financial statements, Costco's gross margin typically resides around 12.5-13.0%, but the 2026Q4 figure of 27.7% represents a dramatic, non-recurring deviation from the company's low-margin, high-volume operating model.

The core operating margin of ~3.8% reflects a deliberate strategy of thin retail margins supplemented by high-margin membership fees. The Q4 gross margin spike appears to be an accounting or timing anomaly rather than a sustainable shift, and excluding it, the underlying profitability remains stable but modest relative to the company's premium valuation.

Modest Returns Despite Capital Efficiency

According to recent SEC filings, Costco's return on invested capital (ROIC) has trended upward from 7.6% in 2025Q1 to 13.3% in 2026Q4, but this remains below the peer average of ~13.5%, suggesting capital allocation is efficient but not generating elite returns.

The improvement in ROIC is driven primarily by asset turnover and margin expansion in Q4, not by a structural enhancement to the business model's earning power. When compared to its high valuation, the 13.3% ROIC indicates the market is pricing a significant future expansion in returns that has yet to materialize consistently.

Negative CCC Signals Supplier Dominance

Based on the provided data, Costco's cash conversion cycle (CCC) turned negative at -1 day in 2026Q4, a result of a days payable outstanding (DPO) of 36 days, which effectively means the company finances inventory using supplier credit.

This negative CCC is a structural advantage, indicating Costco can sell inventory before paying suppliers, thereby minimizing invested working capital. The trend shows a gradual improvement from a CCC of 2-3 days, reflecting increased leverage with suppliers as the company scales, a key driver of its robust cash generation.

Adequate but Inventory-Dependent Liquidity

As shown in quarterly reports, Costco's current ratio of 1.06 and quick ratio of 0.62 indicate adequate liquidity, but the significant gap between them highlights a strong dependence on inventory to meet short-term obligations.

The improvement in both ratios over ten quarters is positive, but the quick ratio below 1.0 suggests the company cannot cover immediate liabilities without selling inventory. In a severe downturn where inventory becomes slow-moving, this could strain liquidity, though the company's strong cash balance provides a buffer.

P/E Misleads Due to Low-Margin Model

The most commonly misapplied ratio to Costco is the price-to-earnings (P/E) ratio, currently at 49.23, which obscures the reality that net income is intentionally minimized by the company's low-margin, high-volume retail strategy.

Costco's business model prioritizes volume and membership growth over maximizing net profit margin, making P/E a poor relative metric. A more appropriate measure would be price-to-sales (P/S) or enterprise value-to-EBITDA, which better capture the scale and cash-generating power of the core operations before accounting and capital structure differences.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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COST — Frequently Asked Questions

Quick answers to the most common questions about buying COST stock.

What is Costco Wholesale Corporation's P/E ratio?

Costco Wholesale Corporation's current P/E ratio is 50.7x. The historical average is 30.0x. This places it at the 93th percentile of its historical range.

What is Costco Wholesale Corporation's EV/EBITDA?

Costco Wholesale Corporation's current EV/EBITDA is 31.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.8x.

What is Costco Wholesale Corporation's ROE?

Costco Wholesale Corporation's return on equity (ROE) is 28.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 18.5%.

Is COST stock overvalued?

Based on historical data, Costco Wholesale Corporation is trading at a P/E of 50.7x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Costco Wholesale Corporation's dividend yield?

Costco Wholesale Corporation's current dividend yield is 0.53% with a payout ratio of 26.6%.

What are Costco Wholesale Corporation's profit margins?

Costco Wholesale Corporation has 12.8% gross margin and 3.9% operating margin.

How much debt does Costco Wholesale Corporation have?

Costco Wholesale Corporation's Debt/EBITDA ratio is 0.6x, indicating low leverage. A ratio below 2x is generally considered financially healthy.