Latest Ratios: P/E Ratio 50.7x · EV/EBITDA 31.7x · ROE 28.4%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 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 → | 50.74 | 45.54 | 51.80 | 53.89 | 38.44 | 40.47 | 39.96 | 38.62 | 35.69 | 32.88 | 25.78 |
| P/S Ratio | 1.54 | 1.39 | 1.52 | 1.56 | 1.00 | 1.04 | 1.02 | 0.93 | 0.85 | 0.73 | 0.54 |
| P/B Ratio | 13.08 | 11.74 | 14.39 | 16.80 | 9.65 | 11.46 | 11.07 | 8.27 | 8.38 | 7.86 | 6.24 |
| P/FCF | 49.76 | 44.75 | 53.54 | 59.87 | 35.86 | 67.56 | 37.26 | 25.56 | 38.88 | 36.72 | 16.36 |
| P/OCF | 29.52 | 26.55 | 31.47 | 35.00 | 21.86 | 32.00 | 22.34 | 17.45 | 20.54 | 17.84 | 10.28 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.35 | 1.51 | 1.56 | 0.99 | 1.05 | 1.02 | 0.92 | 0.84 | 0.73 | 0.55 |
| EV / EBITDA | 31.73 | 28.45 | 32.45 | 34.45 | 23.43 | 24.47 | 23.59 | 21.67 | 20.71 | 17.50 | 12.99 |
| EV / EBIT | 38.99 | 34.96 | 37.88 | 40.06 | 27.61 | 29.66 | 29.23 | 27.76 | 26.25 | 22.50 | 17.07 |
| EV / FCF | — | 43.51 | 53.04 | 59.88 | 35.39 | 67.76 | 37.29 | 25.36 | 38.41 | 36.91 | 16.86 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 12.8% | 12.8% | 12.8% | 12.6% | 12.3% | 12.1% | 12.9% | 13.1% | 13.0% | 13.0% | 13.3% |
| Operating Margin | 3.9% | 3.9% | 3.8% | 3.6% | 3.3% | 3.4% | 3.4% | 3.3% | 3.1% | 3.2% | 3.2% |
| Net Profit Margin | 3.0% | 3.0% | 2.9% | 2.9% | 2.6% | 2.6% | 2.6% | 2.4% | 2.4% | 2.2% | 2.1% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 28.4% | 28.4% | 30.7% | 30.3% | 27.5% | 30.2% | 27.2% | 23.3% | 25.5% | 25.9% | 22.9% |
| ROA | 11.1% | 11.1% | 11.0% | 10.6% | 9.5% | 9.5% | 8.7% | 7.9% | 8.5% | 8.1% | 7.7% |
| ROIC | 35.5% | 35.5% | 31.9% | 30.6% | 28.1% | 29.5% | 28.2% | 25.9% | 25.7% | 25.1% | 22.6% |
| ROCE | 27.5% | 27.5% | 27.9% | 26.6% | 24.0% | 25.1% | 22.2% | 20.6% | 22.0% | 22.5% | 22.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.24 | 0.24 | 0.35 | 0.42 | 0.42 | 0.53 | 0.63 | 0.59 | 0.44 | 0.50 | 0.60 |
| Debt / EBITDA | 0.60 | 0.60 | 0.80 | 0.86 | 1.03 | 1.13 | 1.34 | 1.57 | 1.10 | 1.11 | 1.21 |
| Net Debt / Equity | — | -0.32 | -0.14 | 0.00 | -0.13 | 0.03 | 0.01 | -0.06 | -0.10 | 0.04 | 0.19 |
| Net Debt / EBITDA | -0.81 | -0.81 | -0.31 | 0.00 | -0.31 | 0.07 | 0.02 | -0.17 | -0.25 | 0.09 | 0.39 |
| Debt / FCF | — | -1.24 | -0.50 | 0.01 | -0.47 | 0.20 | 0.03 | -0.20 | -0.46 | 0.19 | 0.50 |
| Interest Coverage | 80.59 | 80.59 | 71.25 | 58.63 | 54.04 | 50.62 | 40.06 | 34.54 | 32.77 | 28.94 | 31.14 |
Net cash position: cash ($20.2B) exceeds total debt ($8.6B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.06 | 1.06 | 1.03 | 0.97 | 1.07 | 1.02 | 1.00 | 1.13 | 1.01 | 1.02 | 0.99 |
| Quick Ratio | 0.62 | 0.62 | 0.55 | 0.44 | 0.57 | 0.46 | 0.52 | 0.64 | 0.52 | 0.46 | 0.43 |
| Cash Ratio | 0.48 | 0.48 | 0.41 | 0.31 | 0.45 | 0.35 | 0.41 | 0.54 | 0.41 | 0.36 | 0.33 |
| Asset Turnover | — | 3.40 | 3.57 | 3.64 | 3.51 | 3.54 | 3.31 | 3.00 | 3.36 | 3.47 | 3.55 |
| Inventory Turnover | 13.68 | 13.68 | 13.24 | 11.92 | 12.77 | 11.13 | 12.01 | 11.84 | 11.66 | 11.16 | 11.38 |
| Days Sales Outstanding | — | 4.77 | 4.25 | 3.90 | 3.44 | 3.60 | 3.36 | 3.39 | 3.67 | 4.30 | 4.05 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.5% | 0.6% | 0.5% | 2.3% | 0.5% | 0.6% | 2.9% | 1.0% | 0.8% | 0.7% | 5.6% |
| Payout Ratio | 26.6% | 26.6% | 27.0% | 122.7% | 19.9% | 25.6% | 114.8% | 37.0% | 28.4% | 22.0% | 145.7% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.0% | 2.2% | 1.9% | 1.9% | 2.6% | 2.5% | 2.5% | 2.6% | 2.8% | 3.0% | 3.9% |
| FCF Yield | 2.0% | 2.2% | 1.9% | 1.7% | 2.8% | 1.5% | 2.7% | 3.9% | 2.6% | 2.7% | 6.1% |
| Buyback Yield | 0.2% | 0.2% | 0.2% | 0.2% | 0.3% | 0.2% | 0.2% | 0.1% | 0.2% | 0.3% | 0.7% |
| Total Shareholder Yield | 0.7% | 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 |
Includes 30+ ratios · 30 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
Bull/bear thesis, analyst target revisions, and earnings execution.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying COST stock.
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.
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.
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%.
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.
Costco Wholesale Corporation's current dividend yield is 0.53% with a payout ratio of 26.6%.
Costco Wholesale Corporation has 12.8% gross margin and 3.9% operating margin.
Costco Wholesale Corporation's Debt/EBITDA ratio is 0.6x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Sustainability of anomalous Q4 margin
Metrics are mathematically derived from official filings.
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.