Costco Wholesale CorporationStock Price and Value Analysis

Should you buy Costco Wholesale Corporation stock? (NasdaqGS:COST). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantages
  • This company is very stable.
  • This company has stable growth.
  • This company is making money at a modest rate.
  • This company has a low dividend yield.
  • This stock looks overpriced.

COST Free Cash Flow Trend

Based on historical returns, we believe that Costco Wholesale Corporation can grow its free cash at a rate of about 4%. That's positive!

Free Cash Flow trendline for COST
Free Cash Flow trendline for Costco Wholesale Corporation

Inside the COST Numbers

COST Price
(Costco Wholesale Corporation stock price per share)
$186.53
[?] COST Fair Price
(based on intrinsic value)
$72.06
[?] COST Safety Price (based on a variable margin of safety) $57.65
[?] PE Ratio versus Sector 49% higher than other Services stocks
[?] PE Ratio versus Industry 139% higher than other Discount, Variety Stores stocks
[?] Cash Yield 3.72%
[?] Free Cash Flow Jitter 14%
[?] Dividend Yield 1%

Is Costco Wholesale Corporation Stock on Sale?

We believe that Costco Wholesale Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Costco Wholesale Corporation looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy COST Stock?

Does Costco Wholesale Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.