Costco Wholesale Valuation Analysis
Costco Wholesale (NASDAQ: COST) currently has a price-to-earnings (P/E) ratio of 49, significantly higher than competitors like Walmart and Target, and even surpassing Amazon’s P/E of 29. The company’s stock has not traded below 15 times earnings since 2009, indicating its consistently high valuation. In the first nine months of fiscal 2026, which ended May 10, 2026, Costco reported total revenue of $207 billion, a 10% year-over-year increase, and net income of $6.2 billion, representing a 13% increase compared to the previous year.
With revenue and earnings growth rates slightly improving, analysts suggest Costco’s stock should remain on watch lists rather than being actively bought, due to its high valuation. The stock’s performance has been flat since the beginning of 2025, raising concerns about the premium investors might be paying. The recommendation is for potential investors to consider purchasing Costco stock only if it falls below 35 times earnings in the event of a market downturn.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
