Understanding Costco Price to Earnings Ratio

The price to earnings ratio, or P/E ratio, is a fundamental metric used to evaluate the value of a company's stock. It's calculated by dividing the stock's current price by its earnings per share.

Costco's P/E ratio has been consistently lower than its competitors, such as Walmart and Target, due to its unique business model. This is because Costco generates most of its revenue from membership fees and high-margin sales of private-label products.

The average P/E ratio for the retail industry is around 20, but Costco's P/E ratio has been as low as 25. This suggests that investors are not placing a high premium on the company's stock.

A different take: Dividend Stocks with Highest Yield

Costco's P/E ratio has been on a wild ride over the years, with a mean historical P/E ratio of 37.29 over the last ten years.

The current P/E ratio of 51.84 is 39% higher than the historical average, which is a significant increase.

Expand your knowledge: Total Assets - Total Equity / Total Assets

In February 2025, Costco's P/E ratio peaked at 62.43, with a price of $1,071.85 and an EPS of $17.17. This was a remarkable spike, but it's worth noting that the P/E ratio has been above the historical average for a while now.

Looking at the historical data, we can see that the P/E ratio has varied significantly over the years, ranging from 15.53 in 2010 to 53.77 in 2019.

Here's a breakdown of Costco's P/E ratio history over the last few years:

The lowest point for Costco's P/E ratio was in September 2017, when it reached 25.9, with a price of $158.24 and an EPS of $6.11.

The current PE ratio of Costco Wholesale (COST) is a vital metric for investors to consider. It's currently higher than its 3, 5, and 10-year averages.

Let's take a look at the 3-year average PE ratio for Costco Wholesale (COST). As an average over the last 3 years, COST stock has a PE ratio of 47.04. This is a significant figure to keep in mind when evaluating the company's financial performance.

Worth a look: Average Accounting Return

The 5-year average PE ratio for Costco Wholesale (COST) is 43.94. This indicates a relatively stable trend in the company's earnings growth over the past five years.

COST's current PE ratio is 39% above its 10-year historical average. This suggests that the company's stock price has increased significantly over the past decade.

Here's a snapshot of Costco Wholesale's PE ratio by quarter, highlighting quarterly fluctuations over the past few years:

The highest annual PE ratio for Costco Wholesale Corporation (COST) was 53.77 in 2024.

The P/E ratio is a simple yet powerful tool for evaluating a company's stock value. It's calculated by dividing the latest price of a stock by its trailing twelve months EPS.

To calculate Costco Wholesale's P/E ratio, you need to know the latest stock price and the trailing twelve months EPS. As of today, Costco Wholesale's share price is $915.95, and its trailing twelve months EPS is $17.67.

For more insights, see: Per Share of Common Stock

The formula for calculating the P/E ratio is straightforward: PE RATIO = STOCK PRICE / TTM EPS. Using this formula, we can calculate Costco Wholesale's P/E ratio as 51.84, which is obtained by dividing $915.95 by $17.67.

Here's a quick reference table to illustrate the calculation:

The P/E ratio can fluctuate over time, and it's essential to check the latest numbers. As of today, Costco Wholesale's P/E ratio is 51.84, but it was 25.81 in its last reported period, and it's projected to be 18.47 for the next year.

The P/E ratio is a crucial metric in stock analysis, and understanding how it's calculated is essential.

The P/E ratio is obtained by dividing the latest price of a stock by its trailing twelve months EPS.

To calculate the P/E ratio, you'll need the latest stock price and the company's earnings per share for the trailing twelve months.

As of today, Costco Wholesale's share price is $915.95.

The company's earnings per share for the trailing twelve months (TTM) ending May 2025 is $17.67.

All PE ratio stats are based on quarterly TTM periods, unless otherwise specified.

Related reading: The Current Ratio Measures a Company's

Costco Wholesale's financial statements are a great example of how companies present their financial data.

The PE Ratio of Costco Wholesale is 25.81, as reported in their latest financial statements.

This means that investors are willing to pay $25.81 for every dollar of earnings that Costco Wholesale generates.

The projected PE Ratio for next year is 18.47, indicating a potential decrease in the company's valuation.

Here's an interesting read: Citicards Visa Costco

Costco's Price to Earnings Ratio is a key metric to understand the company's value. It's higher than the Consumer Defensive sector average of 22.4, at 51.84.

Compared to its peers, Costco's PE Ratio is significantly higher than Target Corporation's 10.17, Walmart Inc.'s 38.56, BJ's Wholesale Club Holdings, Inc.'s 21.20, Dollar Tree, Inc.'s -6.65, The Home Depot, Inc.'s 27.81, Starbucks Corporation's 36.00, and Visa Inc.'s 32.30.

Here's a comparison of Costco's PE Ratio with its peers:

Costco's PE Ratio is also higher than the South American Consumer Retailing industry average of 15.6. This suggests that Costco may be overvalued compared to its industry peers.

Costco's Price to Earnings (P/E) ratio is a key metric to understand its valuation. It's calculated by dividing the company's market cap by its current earnings.

The P/E ratio for Costco is 50.1x, which is significantly higher than the peer average of 21.6x. This suggests that Costco is expensive compared to its peers.

In comparison to the South American Consumer Retailing industry average, Costco's P/E ratio of 50.1x is also higher than the industry average of 15.6x. This indicates that Costco is overvalued compared to its industry peers.

Here's a comparison of Costco's P/E ratio with its peers:

As you can see, Costco's P/E ratio is the highest among its peers, indicating that it's the most expensive. However, it's essential to consider other factors such as estimated growth and market cap when evaluating a company's valuation.

The P/E ratio is a crucial metric to understand when evaluating Costco's stock performance. The mean historical PE Ratio of Costco Wholesale Corporation over the last ten years is 33.58.

The current PE Ratio of 50.24 has changed 14.86% with respect to the historical average. In fact, it's 39% higher than the historical average, as stated in the data.

The highest PE ratio for COST was 62.43 in the Feb 2025 quarter. This is a significant milestone, indicating a peak in the company's stock value.

The PE ratio has fluctuated over the years, with the lowest point being 18.85 in the September 2017 quarter. This is a notable contrast to the current PE ratio.

Here's a breakdown of Costco's average PE ratios over different time periods:

As you can see, the current PE ratio is higher than its 3, 5, and 10-year averages.

The P/E ratio is a simple yet powerful metric that helps investors compare the value of different stocks. It's calculated by dividing the stock's current price by its earnings per share.

A high P/E ratio indicates that investors are willing to pay a premium for a company's stock, suggesting they expect strong future growth. In contrast, a low P/E ratio may indicate that investors are skeptical about the company's growth prospects.

A fresh viewpoint: Dow Stocks by Dividend Yield

The P/E ratio is often used in conjunction with other metrics, such as the price-to-book ratio, to get a more complete picture of a company's value. This is especially useful when comparing companies in different industries.

The P/E ratio can vary significantly between industries, with some industries typically having higher or lower P/E ratios. For example, the technology sector often has higher P/E ratios due to its high growth potential.

In the context of Costco's P/E ratio, a low P/E ratio of around 25 may indicate that investors are skeptical about the company's ability to maintain its high profit margins.