Costco Wholesale Corporation (COST) Financial Ratios
30 years of historical data (1996–2025) · Consumer Defensive · Discount Stores
EV/EBITDA
↑
32.47
+18% vs avg
5yr avg: 27.52
30Y Low8.0·High34.3
P/FCF
↑
53.84
+6% vs avg
5yr avg: 50.82
30Y Low14.3·High115.1
P/B Ratio
↑
14.51
+15% vs avg
5yr avg: 12.67
30Y Low2.2·High16.8
ROE
↑
30.7%
↓+5% vs avg
5yr avg: 29.2%
30Y Low11%·High31%
Debt/EBITDA
↓
0.64
↓-27% vs avg
5yr avg: 0.87
30Y Low0.3·High2.0
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
COST Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Costco Wholesale Corporation trades at 52.2x earnings, 16% above its 5-year average of 44.9x, sitting at the 97th percentile of its historical range. Compared to the Consumer Defensive sector median P/E of 18.8x, the stock trades at a premium of 178%. On a free-cash-flow basis, the stock trades at 53.8x P/FCF, 6% above the 5-year average of 50.8x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $421.9B | $419.6B | $396.9B | $241.9B | $236.5B | $200.1B | $154.6B | $130.6B | $103.0B | $69.1B | $71.5B |
| Enterprise Value | $416.0B | $413.6B | $395.3B | $237.1B | $235.4B | $199.0B | $152.5B | $129.0B | $103.5B | $71.2B | $73.3B |
| P/E Ratio → | 52.25 | 51.80 | 53.89 | 38.44 | 40.47 | 39.96 | 38.62 | 35.69 | 32.88 | 25.78 | 30.41 |
| P/S Ratio | 1.53 | 1.52 | 1.56 | 1.00 | 1.04 | 1.02 | 0.93 | 0.85 | 0.73 | 0.54 | 0.60 |
| P/B Ratio | 14.51 | 14.39 | 16.80 | 9.65 | 11.46 | 11.07 | 8.27 | 8.38 | 7.86 | 6.24 | 5.80 |
| P/FCF | 53.84 | 53.54 | 59.87 | 35.86 | 67.56 | 37.26 | 25.56 | 38.88 | 36.72 | 16.36 | 111.24 |
| P/OCF | 31.64 | 31.47 | 35.00 | 21.86 | 32.00 | 22.34 | 17.45 | 20.54 | 17.84 | 10.28 | 21.73 |
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
Costco Wholesale Corporation's enterprise value stands at 32.5x EBITDA, 18% above its 5-year average of 27.5x. The Consumer Defensive sector median is 11.0x, placing the stock at a 195% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.50 | 1.55 | 0.98 | 1.04 | 1.02 | 0.91 | 0.84 | 0.73 | 0.55 | 0.62 |
| EV / EBITDA | 32.47 | 32.29 | 34.30 | 23.26 | 24.28 | 23.44 | 21.54 | 20.71 | 17.50 | 12.99 | 14.88 |
| EV / EBIT | 40.06 | 37.70 | 39.89 | 27.42 | 29.43 | 29.04 | 27.58 | 26.25 | 22.50 | 17.07 | 19.54 |
| EV / FCF | — | 52.78 | 59.63 | 35.15 | 67.23 | 37.05 | 25.21 | 38.41 | 36.91 | 16.86 | 114.01 |
COST Profitability
Margins and return-on-capital ratios measuring operating efficiency
Costco Wholesale Corporation earns an operating margin of 3.8%, roughly in line with the Consumer Defensive sector average. Return on equity of 30.7% is exceptionally high — well above the sector median of 6.5%. ROIC of 34.5% represents excellent returns on invested capital versus a sector median of 5.7%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 12.8% | 12.8% | 12.6% | 12.3% | 12.1% | 12.9% | 13.1% | 13.0% | 13.0% | 13.3% | 13.3% |
| Operating Margin | 3.8% | 3.8% | 3.6% | 3.3% | 3.4% | 3.4% | 3.3% | 3.1% | 3.2% | 3.2% | 3.1% |
| Net Profit Margin | 2.9% | 2.9% | 2.9% | 2.6% | 2.6% | 2.6% | 2.4% | 2.4% | 2.2% | 2.1% | 2.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 30.7% | 30.7% | 30.3% | 27.5% | 30.2% | 27.2% | 23.3% | 25.5% | 25.9% | 22.9% | 20.3% |
| ROA | 11.0% | 11.0% | 10.6% | 9.5% | 9.5% | 8.7% | 7.9% | 8.5% | 8.1% | 7.7% | 7.1% |
| ROIC | 34.5% | 34.5% | 33.0% | 30.6% | 32.1% | 30.0% | 26.6% | 25.7% | 25.1% | 22.6% | 21.0% |
| ROCE | 27.9% | 27.9% | 26.6% | 24.0% | 25.1% | 22.2% | 20.6% | 22.0% | 22.5% | 22.6% | 21.6% |
COST Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Costco Wholesale Corporation carries a Debt/EBITDA ratio of 0.6x, which is very conservative (82% below the sector average of 3.5x). The company holds a net cash position — cash of $14.2B exceeds total debt of $8.2B, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 71.2x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.28 | 0.28 | 0.35 | 0.35 | 0.44 | 0.56 | 0.54 | 0.44 | 0.50 | 0.60 | 0.42 |
| Debt / EBITDA | 0.64 | 0.64 | 0.72 | 0.87 | 0.93 | 1.19 | 1.44 | 1.10 | 1.11 | 1.21 | 1.05 |
| Net Debt / Equity | — | -0.21 | -0.07 | -0.19 | -0.06 | -0.06 | -0.11 | -0.10 | 0.04 | 0.19 | 0.14 |
| Net Debt / EBITDA | -0.47 | -0.47 | -0.14 | -0.47 | -0.12 | -0.13 | -0.30 | -0.25 | 0.09 | 0.39 | 0.36 |
| Debt / FCF | — | -0.76 | -0.25 | -0.71 | -0.33 | -0.21 | -0.35 | -0.46 | 0.19 | 0.50 | 2.77 |
| Interest Coverage | 71.25 | 71.25 | 58.63 | 54.04 | 50.62 | 40.06 | 33.73 | 32.77 | 28.94 | 31.14 | 28.21 |
Net cash position: cash ($14.2B) exceeds total debt ($8.2B)
COST Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.03x means Costco Wholesale Corporation can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.55x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.03 | 1.03 | 0.97 | 1.07 | 1.02 | 1.00 | 1.13 | 1.01 | 1.02 | 0.99 | 0.98 |
| Quick Ratio | 0.55 | 0.55 | 0.44 | 0.57 | 0.46 | 0.52 | 0.64 | 0.52 | 0.46 | 0.43 | 0.40 |
| Cash Ratio | 0.41 | 0.41 | 0.31 | 0.45 | 0.35 | 0.41 | 0.54 | 0.41 | 0.36 | 0.33 | 0.30 |
| Asset Turnover | — | 3.57 | 3.64 | 3.51 | 3.54 | 3.31 | 3.00 | 3.36 | 3.47 | 3.55 | 3.58 |
| Inventory Turnover | 13.24 | 13.24 | 11.92 | 12.77 | 11.13 | 12.01 | 11.84 | 11.66 | 11.16 | 11.38 | 11.47 |
| Days Sales Outstanding | — | 4.25 | 3.90 | 3.44 | 3.60 | 3.36 | 3.39 | 3.67 | 4.30 | 4.05 | 3.85 |
COST Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Costco Wholesale Corporation returns 0.7% to shareholders annually — split between a 0.5% dividend yield and 0.2% buyback yield. The payout ratio of 27.0% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 1.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.5% | 0.5% | 2.3% | 0.5% | 0.6% | 2.9% | 1.0% | 0.8% | 0.7% | 5.6% | 1.0% |
| Payout Ratio | 27.0% | 27.0% | 122.7% | 19.9% | 25.6% | 114.8% | 37.0% | 28.4% | 22.0% | 145.7% | 31.7% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.9% | 1.9% | 1.9% | 2.6% | 2.5% | 2.5% | 2.6% | 2.8% | 3.0% | 3.9% | 3.3% |
| FCF Yield | 1.9% | 1.9% | 1.7% | 2.8% | 1.5% | 2.7% | 3.9% | 2.6% | 2.7% | 6.1% | 0.9% |
| Buyback Yield | 0.2% | 0.2% | 0.2% | 0.3% | 0.2% | 0.2% | 0.1% | 0.2% | 0.3% | 0.7% | 0.7% |
| Total Shareholder Yield | 0.7% | 0.7% | 2.5% | 0.8% | 0.8% | 3.1% | 1.1% | 1.0% | 1.0% | 6.3% | 1.7% |
| Shares Outstanding | — | $445M | $445M | $444M | $445M | $444M | $444M | $443M | $442M | $441M | $441M |
Peer Comparison
Compare COST with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 COSTYou | $422B | 52.2 | 32.5 | 53.8 | 12.8% | 3.8% | 30.7% | 34.5% | 0.6 |
 WMT | $934B | 42.9 | 22.5 | 62.6 | 24.9% | 4.2% | 21.5% | 14.4% | 1.5 |
 TGT | $59B | 16.1 | 9.3 | 20.9 | 25.4% | 4.6% | 24.0% | 12.0% | 2.5 |
 BJ | $11B | 19.5 | 11.8 | 32.9 | 18.6% | 3.9% | 28.6% | 13.5% | 2.3 |
 KR | $35B | 36.8 | 9.7 | 10.4 | 23.3% | 1.3% | 14.3% | 5.0% | 4.2 |
 ACI | $7B | 8.2 | 5.1 | 9.2 | 27.7% | 1.9% | 31.3% | 6.8% | 3.5 |
 SFM | $8B | 15.2 | 9.3 | 16.2 | 37.1% | 7.8% | 38.4% | 17.8% | 2.0 |
 WMK | $2B | 21.0 | 8.6 | 393.6 | 22.7% | 2.1% | 6.7% | 5.4% | 0.8 |
 GO | $916M | -4.0 | — | 38.5 | 30.3% | -4.7% | -20.6% | -6.0% | — |
 PG | $351B | 23.1 | 16.2 | 25.0 | 51.2% | 24.3% | 31.1% | 20.1% | 1.5 |
 KO | $342B | 26.1 | 25.4 | 64.5 | 61.6% | 28.7% | 43.2% | 15.8% | 3.1 |
| Consumer Defensive Median | — | 18.8 | 11.0 | 15.3 | 40.8% | 3.5% | 6.5% | 5.7% | 3.5 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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 52.2x. The historical average is 29.0x. This places it at the 97th percentile of its historical range.
What is Costco Wholesale Corporation's EV/EBITDA?
Costco Wholesale Corporation's current EV/EBITDA is 32.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.0x.
What is Costco Wholesale Corporation's ROE?
Costco Wholesale Corporation's return on equity (ROE) is 30.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 18.1%.
Is COST stock overvalued?
Based on historical data, Costco Wholesale Corporation is trading at a P/E of 52.2x. This is at the 97th 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 0.52% with a payout ratio of 27.0%.
What are Costco Wholesale Corporation's profit margins?
Costco Wholesale Corporation has 12.8% gross margin and 3.8% 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.