GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Costco Wholesale Corp (BSP:COWC34) » Definitions » Cyclically Adjusted PB Ratio

Costco Wholesale (BSP:COWC34) Cyclically Adjusted PB Ratio : 19.96 (As of May. 21, 2024)


View and export this data going back to 2016. Start your Free Trial

What is Costco Wholesale Cyclically Adjusted PB Ratio?

As of today (2024-05-21), Costco Wholesale's current share price is R$101.99. Costco Wholesale's Cyclically Adjusted Book per Share for the quarter that ended in Feb. 2024 was R$5.11. Costco Wholesale's Cyclically Adjusted PB Ratio for today is 19.96.

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

BSP:COWC34' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 4.5   Med: 8.02   Max: 19.57
Current: 19.5

During the past years, Costco Wholesale's highest Cyclically Adjusted PB Ratio was 19.57. The lowest was 4.50. And the median was 8.02.

BSP:COWC34's Cyclically Adjusted PB Ratio is ranked worse than
97.71% of 218 companies
in the Retail - Defensive industry
Industry Median: 1.58 vs BSP:COWC34: 19.50

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Costco Wholesale's adjusted book value per share data for the three months ended in Feb. 2024 was R$5.805. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is R$5.11 for the trailing ten years ended in Feb. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Costco Wholesale Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Costco Wholesale's Cyclically Adjusted PB 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 Cyclically Adjusted PB Ratio Chart

Costco Wholesale Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.14 11.44 14.04 14.50 13.98

Costco Wholesale Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Cyclically Adjusted PB 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 12.95 13.35 13.98 14.84 18.29

Competitive Comparison of Costco Wholesale's Cyclically Adjusted PB Ratio

For the Discount Stores subindustry, Costco Wholesale's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB 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 Cyclically Adjusted PB Ratio Distribution in the Retail - Defensive Industry

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

* The bar in red indicates where Costco Wholesale's Cyclically Adjusted PB Ratio falls into.



Costco Wholesale Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Costco Wholesale's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=101.99/5.11
=19.96

* 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 Cyclically Adjusted Book per Share for the quarter that ended in Feb. 2024 is calculated as:

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

Adj_Book=Book Value per Share/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=5.805/130.9299*130.9299
=5.805

Current CPI (Feb. 2024) = 130.9299.

Costco Wholesale Quarterly Data

Book Value per Share CPI Adj_Book
201405 1.496 100.373 1.951
201408 1.594 100.352 2.080
201411 1.791 99.635 2.354
201502 1.634 99.032 2.160
201505 1.841 100.333 2.402
201508 2.131 100.548 2.775
201511 2.335 100.135 3.053
201602 2.483 100.040 3.250
201605 2.324 101.355 3.002
201608 2.215 101.617 2.854
201611 2.274 101.829 2.924
201702 2.200 102.779 2.803
201705 1.808 103.256 2.293
201708 1.940 103.587 2.452
201711 2.058 104.072 2.589
201802 2.177 105.052 2.713
201805 2.514 106.148 3.101
201808 2.872 106.383 3.535
201811 2.829 106.338 3.483
201902 2.933 106.649 3.601
201905 3.287 108.048 3.983
201908 3.486 108.245 4.217
201911 3.730 108.519 4.500
202002 4.089 109.139 4.905
202005 5.365 108.175 6.494
202008 5.665 109.662 6.764
202011 4.569 109.793 5.449
202102 4.786 110.968 5.647
202105 4.926 113.576 5.679
202108 5.216 115.421 5.917
202111 5.795 117.269 6.470
202202 5.694 119.703 6.228
202205 5.591 123.323 5.936
202208 5.993 124.958 6.279
202211 6.371 125.607 6.641
202302 6.657 126.928 6.867
202305 6.623 128.314 6.758
202308 6.934 129.538 7.009
202311 7.214 129.548 7.291
202402 5.805 130.930 5.805

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

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  (BSP:COWC34) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Costco Wholesale Cyclically Adjusted PB Ratio Related Terms

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


Costco Wholesale (BSP:COWC34) 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.

Costco Wholesale (BSP:COWC34) Headlines

No Headlines