Costco Price to Earning

COST
 Stock
  

USD 539.25  44.72  9.04%   

Costco Wholesale Corp fundamentals help investors to digest information that contributes to Costco Wholesale's financial success or failures. It also enables traders to predict the movement of Costco Stock. The fundamental analysis module provides a way to measure Costco Wholesale's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Costco Wholesale stock.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
Costco Wholesale Price to Earnings Ratio are comparatively stable at the moment as compared to the past year. Costco Wholesale reported Price to Earnings Ratio of 25.82 in 2021. Earnings before Tax is likely to gain to about 4 B in 2022, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop slightly above 7.4 B in 2022.

Costco Price to Earning Analysis

Costco Wholesale's Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
P/E 
 = 
Market Value Per Share 
Earnings Per Share 
More About Price to Earning | All Equity Analysis

Current Costco Wholesale Price to Earning

    
  40.61 X  
Most of Costco Wholesale's fundamental indicators, such as Price to Earning, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Costco Wholesale Corp is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Costco Price to Earning Historical Pattern

Today, most investors in Costco Wholesale Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Costco Wholesale's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's price to earning growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Costco Wholesale price to earning as a starting point in their analysis.
   Costco Wholesale Price to Earning   
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Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Compare to competition

Costco Accumulated Retained Earnings Deficit

Accumulated Retained Earnings Deficit

8.81 Billion

Costco Wholesale Accumulated Retained Earnings Deficit are comparatively stable at the moment as compared to the past year. Costco Wholesale reported Accumulated Retained Earnings Deficit of 7.46 Billion in 2021
Based on the latest financial disclosure, the price to earning indicator of Costco Wholesale Corp is roughly 40.61 times. This is 93.66% higher than that of the Food & Staples Retailing sector and 51.81% higher than that of the Consumer Staples industry. The price to earning for all United States stocks is 41.4% lower than that of the firm.

Costco Price to Earning Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Costco Wholesale's direct or indirect competition against its Price to Earning to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Costco Wholesale could also be used in its relative valuation, which is a method of valuing Costco Wholesale by comparing valuation metrics of similar companies.
Costco Wholesale is currently under evaluation in price to earning category among related companies.

Costco Fundamentals

About Costco Wholesale Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Costco Wholesale Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Costco Wholesale using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Costco Wholesale Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2022
Price to Earnings Ratio 25.82  31.15 
Earnings Before Interest Taxes and Depreciation Amortization EBITDA9.8 B7.4 B
Earnings before Tax3.2 BB

Costco Wholesale Investors Sentiment

The influence of Costco Wholesale's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Costco. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Costco Wholesale's public news can be used to forecast risks associated with investment in Costco. The trend in average sentiment can be used to explain how an investor holding Costco can time the market purely based on public headlines and social activities around Costco Wholesale Corp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Costco Wholesale's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Costco Wholesale's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Costco Wholesale's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Costco Wholesale.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Costco Wholesale in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Costco Wholesale's short interest history, or implied volatility extrapolated from Costco Wholesale options trading.

Pair Trading with Costco Wholesale

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Costco Wholesale position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Costco Wholesale will appreciate offsetting losses from the drop in the long position's value.

Moving together with Costco Wholesale

+0.78CBRLCracker Barrel Old Downward RallyPairCorr
+0.74CCLCarnival Fiscal Year End 19th of December 2022 PairCorr
The ability to find closely correlated positions to Costco Wholesale could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Costco Wholesale when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Costco Wholesale - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Costco Wholesale Corp to buy it.
The correlation of Costco Wholesale is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Costco Wholesale moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Costco Wholesale Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Costco Wholesale can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Costco Wholesale Piotroski F Score and Costco Wholesale Altman Z Score analysis. You can also try Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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Is Costco Wholesale's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Costco Wholesale. If investors know Costco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Costco Wholesale listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Costco Wholesale Corp is measured differently than its book value, which is the value of Costco that is recorded on the company's balance sheet. Investors also form their own opinion of Costco Wholesale's value that differs from its market value or its book value, called intrinsic value, which is Costco Wholesale's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Costco Wholesale's market value can be influenced by many factors that don't directly affect Costco Wholesale's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Costco Wholesale's value and its price as these two are different measures arrived at by different means. Investors typically determine Costco Wholesale value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Costco Wholesale's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.