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Costco Wholesale (WBO:COST) Shiller PE Ratio : 71.20 (As of Apr. 28, 2024)


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What is Costco Wholesale Shiller PE Ratio?

As of today (2024-04-28), Costco Wholesale's current share price is €682.10. Costco Wholesale's E10 for the quarter that ended in Feb. 2024 was €9.58. Costco Wholesale's Shiller PE Ratio for today is 71.20.

The historical rank and industry rank for Costco Wholesale's Shiller PE Ratio or its related term are showing as below:

WBO:COST' s Shiller PE Ratio Range Over the Past 10 Years
Min: 34.05   Med: 44.7   Max: 76.13
Current: 70.8

During the past years, Costco Wholesale's highest Shiller PE Ratio was 76.13. The lowest was 34.05. And the median was 44.70.

WBO:COST's Shiller PE Ratio is ranked worse than
91.79% of 195 companies
in the Retail - Defensive industry
Industry Median: 20.59 vs WBO:COST: 70.80

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Costco Wholesale's adjusted earnings per share data for the three months ended in Feb. 2024 was €3.634. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €9.58 for the trailing ten years ended in Feb. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Costco Wholesale Shiller PE Ratio Historical Data

The historical data trend for Costco Wholesale's Shiller PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Costco Wholesale Shiller PE Ratio Chart

Costco Wholesale Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 53.27 56.40 62.94 60.15 55.92

Costco Wholesale Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 52.79 54.25 55.92 58.96 72.23

Competitive Comparison of Costco Wholesale's Shiller PE Ratio

For the Discount Stores subindustry, Costco Wholesale's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Costco Wholesale's Shiller PE Ratio Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Costco Wholesale's Shiller PE Ratio falls into.



Costco Wholesale Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Costco Wholesale's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=682.10/9.58
=71.20

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Costco Wholesale's E10 for the quarter that ended in Feb. 2024 is calculated as:

For example, Costco Wholesale's adjusted earnings per share data for the three months ended in Feb. 2024 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=3.634/129.4194*129.4194
=3.634

Current CPI (Feb. 2024) = 129.4194.

Costco Wholesale Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201405 0.779 100.373 1.004
201408 1.187 100.352 1.531
201411 0.898 99.635 1.166
201502 1.189 99.032 1.554
201505 1.047 100.333 1.351
201508 1.554 100.548 2.000
201511 1.016 100.135 1.313
201602 1.118 100.040 1.446
201605 1.096 101.355 1.399
201608 1.579 101.617 2.011
201611 1.149 101.829 1.460
201702 1.099 102.779 1.384
201705 1.439 103.256 1.804
201708 1.762 103.587 2.201
201711 1.235 104.072 1.536
201802 1.288 105.052 1.587
201805 1.438 106.148 1.753
201808 2.044 106.383 2.487
201811 1.522 106.338 1.852
201902 1.771 106.649 2.149
201905 1.833 108.048 2.196
201908 2.221 108.245 2.655
201911 1.719 108.519 2.050
202002 1.926 109.139 2.284
202005 1.733 108.175 2.073
202008 2.645 109.662 3.122
202011 2.217 109.793 2.613
202102 1.770 110.968 2.064
202105 2.263 113.576 2.579
202108 3.196 115.421 3.584
202111 2.610 117.269 2.880
202202 2.573 119.703 2.782
202205 2.876 123.323 3.018
202208 4.145 124.958 4.293
202211 3.012 125.607 3.103
202302 3.082 126.928 3.143
202305 2.696 128.314 2.719
202308 4.457 129.538 4.453
202311 3.308 129.548 3.305
202402 3.634 129.419 3.634

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Costco Wholesale  (WBO:COST) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Costco Wholesale Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of Costco Wholesale's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Costco Wholesale (WBO:COST) Business Description

Address
999 Lake Drive, Issaquah, WA, USA, 98027
Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco's frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates nearly 600 warehouses in the United States and boasts over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the U.K.