Explain this page
Arphra AIPlain-English read on Costco Wholesale Corporation’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | — | — | — | — | — | — |
| Enterprise value | — | — | — | — | — | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | — | — | — | — | — | — |
| Free cash flow yield | — | — | — | — | — | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +12.88% | +12.15% | +12.26% | +12.61% | +12.84% | +12.81% | +12.91% | +12.48% | +12.27% |
| Operating margin | +3.42% | +3.43% | +3.35% | +3.65% | +3.77% | +3.64% | +3.53% | +3.66% | +3.53% |
| EBITDA margin | +4.41% | +4.36% | +4.43% | +4.77% | +4.87% | +4.68% | +4.78% | +4.60% | +4.80% |
| EBIT margin | +3.50% | +3.52% | +3.57% | +3.89% | +3.99% | +3.81% | +3.90% | +3.72% | +3.89% |
| Pre-tax margin | +3.41% | +3.45% | +3.50% | +3.83% | +3.93% | +3.85% | +3.79% | +3.75% | +3.80% |
| Net margin | +2.56% | +2.57% | +2.60% | +2.90% | +2.94% | +2.80% | +2.83% | +2.78% | +2.76% |
| Cost structure | |||||||||
| Cost of revenue / sales | +87.12% | +87.85% | +87.74% | +87.39% | +87.16% | +87.05% | +86.18% | +88.04% | +86.27% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | +9.42% | +8.71% | +8.91% | +8.96% | +9.07% | +8.91% | +9.10% | +9.12% | +9.17% |
| Effective tax rate | +23.97% | +24.55% | +25.86% | +24.36% | +25.13% | +24.27% | +25.43% | +25.11% | +24.51% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +27.70% | +28.30% | +25.11% | +31.19% | +27.77% | +26.98% | +28.56% | +27.29% | +27.91% |
| Return on assets (ROA) | +8.45% | +9.11% | +9.12% | +10.55% | +10.50% | +9.70% | +9.97% | +9.77% | +9.95% |
| Return on capital (ROC) | +23.78% | +26.25% | +23.91% | +29.11% | +27.81% | +26.60% | +26.67% | +27.25% | +26.74% |
| Return on invested capital (ROIC) | +17.75% | +19.69% | +18.54% | +23.10% | +21.69% | +20.43% | +21.39% | +20.71% | +20.92% |
| Asset turnover | +330.58% | +353.70% | +351.18% | +364.38% | +356.99% | +347.05% | +352.50% | +351.57% | +360.48% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +2.56% | +2.57% | +2.60% | +2.90% | +2.94% | +2.80% | +2.83% | +2.78% | +2.76% |
| Asset turnover (× revenue / assets) | +330.58% | +353.70% | +351.18% | +364.38% | +356.99% | +347.05% | +352.50% | +351.57% | +360.48% |
| Equity multiplier (× assets / equity) | +327.85% | +310.78% | +275.34% | +295.62% | +264.36% | +278.08% | +286.38% | +279.41% | +280.59% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 3.31 | 3.54 | 3.51 | 3.64 | 3.57 | 3.47 | 3.53 | 3.52 | 3.60 |
| Fixed-asset turnover | 7.43 | 8.28 | 8.24 | 8.04 | 7.95 | — | — | — | — |
| Inventory turnover | 12.01 | 11.13 | 12.77 | 11.92 | 13.24 | — | — | — | — |
| Receivables turnover | 108.67 | 101.27 | 106.04 | 93.51 | 85.93 | — | — | — | — |
| Payables turnover | 10.49 | 11.17 | 12.16 | 11.45 | 12.13 | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 3.36 | 3.60 | 3.44 | 3.90 | 4.25 | — | — | — | — |
| Days inventory outstanding (DIO) | 30.40 | 32.78 | 28.59 | 30.61 | 27.56 | — | — | — | — |
| Days payables outstanding (DPO) | 34.81 | 32.67 | 30.02 | 31.88 | 30.10 | — | — | — | — |
| Cash conversion cycle | -1.05 | 3.71 | 2.01 | 2.63 | 1.71 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.79 | 1.26 | 1.76 | 1.54 | 1.65 | 1.66 | 1.61 | 1.67 | 1.65 |
| FCF / Net income | 1.07 | 0.60 | 1.07 | 0.90 | 0.97 | 1.00 | 0.96 | 1.00 | 0.98 |
| FCF margin | +2.74% | +1.54% | +2.78% | +2.61% | +2.85% | +2.81% | +2.71% | +2.77% | +2.70% |
| OCF margin | +4.57% | +3.26% | +4.57% | +4.46% | +4.84% | +4.65% | +4.56% | +4.65% | +4.55% |
| CapEx / Revenue | +1.83% | +1.71% | +1.78% | +1.85% | +2.00% | +1.85% | +1.89% | +1.92% | +1.91% |
| CapEx / D&A | 2.01 | 2.05 | 2.08 | 2.11 | 2.27 | — | — | — | — |
| Stock-based comp / Revenue | +0.34% | +0.32% | +0.32% | +0.32% | +0.31% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 11.27 | 13.14 | 14.16 | 16.56 | 18.21 | 20.51 | 22.62 | 24.95 | 27.03 |
| EPS · basic | 11.30 | 13.17 | 14.18 | 16.60 | 18.24 | 20.62 | 22.44 | 25.03 | 27.17 |
| Book value / share | 40.68 | 46.42 | 56.38 | 53.11 | 65.57 | 70.01 | 72.86 | 80.33 | 82.29 |
| Tangible BV / share | 38.44 | 44.19 | 54.14 | 50.88 | 63.33 | 70.01 | 72.86 | 80.33 | 82.29 |
| Sales / share | 440.94 | 510.29 | 545.14 | 572.11 | 618.78 | 675.68 | 735.47 | 789.07 | 832.38 |
| Operating CF / share | 20.16 | 16.62 | 24.90 | 25.49 | 29.98 | 31.44 | 33.53 | 36.68 | 37.90 |
| Free cash flow / share | 12.09 | 7.87 | 15.18 | 14.90 | 17.62 | 18.97 | 19.96 | 21.85 | 22.48 |
| Dividends / share | 12.94 | 3.37 | 2.81 | 20.33 | 4.91 | 11.10 | 11.68 | 12.94 | 13.64 |
| Payout ratio | +114.80% | +25.63% | +19.88% | +122.72% | +26.95% | +58.74% | +56.14% | +59.02% | +59.36% |
| Retention ratio | -14.80% | +74.37% | +80.12% | -22.72% | +73.05% | +41.26% | +43.86% | +40.98% | +40.64% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +15.83% | +6.76% | +5.02% | +8.17% | +9.43% | +8.19% | +7.52% | +6.44% | +8.38% |
| Gross profit · YoY | — | +9.22% | +7.73% | +8.05% | +10.14% | +9.19% | +9.03% | +3.93% | +4.61% | +7.71% |
| Profit | ||||||||||
| Operating income · YoY | — | +16.17% | +4.12% | +14.43% | +11.83% | +5.54% | +4.90% | +11.41% | +2.69% | +8.78% |
| EBITDA · YoY | — | +14.67% | +8.35% | +13.26% | +10.31% | +5.28% | +10.37% | +3.56% | +10.92% | +9.53% |
| Net income · YoY | — | +16.72% | +7.67% | +17.09% | +9.94% | +3.95% | +9.51% | +5.56% | +5.73% | +9.42% |
| Operating | ||||||||||
| EBIT · YoY | — | +16.74% | +8.11% | +14.59% | +10.73% | +4.52% | +10.81% | +2.56% | +11.43% | +9.85% |
| R&D · YoY | — | — | — | — | — | — | — | — | — | — |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | +16.59% | +7.76% | +16.95% | +9.96% | +12.61% | +10.31% | +10.30% | +8.32% | +11.55% |
| EPS · basic · YoY | — | +16.55% | +7.67% | +17.07% | +9.88% | +13.05% | +8.84% | +11.55% | +8.53% | +11.59% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $10.13B | $9.04B | $8.88B | $8.27B | $8.17B | $9.99B | $10.82B | $11.32B | $12.31B |
| Net debt | -$1.13B | -$1.16B | -$4.82B | -$1.63B | -$5.99B | -$4.96B | -$5.16B | -$6.34B | -$5.97B |
| Net debt / EBITDA | -0.13 | -0.12 | -0.45 | -0.13 | -0.45 | -0.35 | -0.33 | -0.39 | -0.33 |
| Debt / equity | 0.56 | 0.44 | 0.35 | 0.35 | 0.28 | 0.32 | 0.34 | 0.32 | 0.33 |
| Debt / assets | +17.10% | +14.09% | +12.88% | +11.85% | +10.60% | +11.52% | +11.71% | +11.36% | +11.90% |
| Equity / assets | +30.50% | +32.18% | +36.32% | +33.83% | +37.83% | +35.96% | +34.92% | +35.79% | +35.64% |
| Coverage | |||||||||
| EBITDA / interest expense | 50.48 | 62.65 | 67.03 | 71.87 | 87.00 | 75.85 | 75.98 | 71.24 | 78.50 |
| Operating income / interest | 39.23 | 49.32 | 50.71 | 54.94 | 67.42 | 58.93 | 56.10 | 56.59 | 57.73 |
| Interest expense | $171M | $158M | $160M | $169M | $154M | $185.95M | $204.88M | $226.3M | $227.78M |
| Liquidity | |||||||||
| Current ratio | 1.00 | 1.02 | 1.07 | 0.97 | 1.03 | — | — | — | — |
| Quick ratio | 0.47 | 0.42 | 0.52 | 0.39 | 0.50 | — | — | — | — |
| Cash ratio | 0.38 | 0.32 | 0.41 | 0.28 | 0.38 | — | — | — | — |
| Working capital | $64M | $698M | $2.3B | -$1.22B | $1.27B | — | — | — | — |
| Working capital / revenue | +0.03% | +0.31% | +0.95% | -0.48% | +0.46% | — | — | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).