Added to YB: 2026-09-24
Pitch date: 2026-09-21
COST [bearish]
Costco Wholesale Corporation
-0.27%
current return
Author Info
No bio for this author
Company Info
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.
Market Cap
$397.1B
Pitch Price
$902.25
Price Target
413.00 (-54%)
Dividend
0.66%
EV/EBITDA
27.04
P/E
45.03
EV/Sales
1.31
Sector
Consumer Staples Distribution and Retail
Category
N/A
$COST DCF VALUATION MODEL
COST (pass): Costco remains an exceptional, defensive retailer, but at $895 the shares trade near 40x forward earnings and 28x EBITDA, leaving little room for disappointment. A DCF using 7.4% five-year revenue growth, gradual EBITDA-margin expansion and a 7.5% WACC yields $621 per share, about 31% below the market price; despite the wide moat and strong capital efficiency, an entry is not warranted.
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