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

Costco Wholesale (BSP:COWC34) Cyclically Adjusted Price-to-FCF : 77.27 (As of May. 21, 2024)


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

What is Costco Wholesale Cyclically Adjusted Price-to-FCF?

As of today (2024-05-21), Costco Wholesale's current share price is R$101.99. Costco Wholesale's Cyclically Adjusted FCF per Share for the quarter that ended in Feb. 2024 was R$1.32. Costco Wholesale's Cyclically Adjusted Price-to-FCF for today is 77.27.

The historical rank and industry rank for Costco Wholesale's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

BSP:COWC34' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 36.03   Med: 46.87   Max: 75.5
Current: 75.26

During the past years, Costco Wholesale's highest Cyclically Adjusted Price-to-FCF was 75.50. The lowest was 36.03. And the median was 46.87.

BSP:COWC34's Cyclically Adjusted Price-to-FCF is ranked worse than
93.65% of 126 companies
in the Retail - Defensive industry
Industry Median: 15.495 vs BSP:COWC34: 75.26

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 Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Costco Wholesale's adjusted free cash flow per share data for the three months ended in Feb. 2024 was R$-0.084. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is R$1.32 for the trailing ten years ended in Feb. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Costco Wholesale Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Costco Wholesale's Cyclically Adjusted Price-to-FCF 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 Price-to-FCF Chart

Costco Wholesale Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 52.82 52.98 59.84 60.76 55.67

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 Price-to-FCF 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 51.37 55.31 55.67 56.07 70.60

Competitive Comparison of Costco Wholesale's Cyclically Adjusted Price-to-FCF

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

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

* The bar in red indicates where Costco Wholesale's Cyclically Adjusted Price-to-FCF falls into.



Costco Wholesale Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF 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 Price-to-FCF.

Costco Wholesale's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=101.99/1.32
=77.27

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

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

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=-0.084/130.9299*130.9299
=-0.084

Current CPI (Feb. 2024) = 130.9299.

Costco Wholesale Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201405 0.215 100.373 0.280
201408 -0.046 100.352 -0.060
201411 0.083 99.635 0.109
201502 0.046 99.032 0.061
201505 0.288 100.333 0.376
201508 0.044 100.548 0.057
201511 0.021 100.135 0.027
201602 0.037 100.040 0.048
201605 0.281 101.355 0.363
201608 -0.185 101.617 -0.238
201611 0.403 101.829 0.518
201702 -0.004 102.779 -0.005
201705 0.194 103.256 0.246
201708 0.188 103.587 0.238
201711 0.219 104.072 0.276
201802 -0.073 105.052 -0.091
201805 0.312 106.148 0.385
201808 0.110 106.383 0.135
201811 0.309 106.338 0.380
201902 -0.170 106.649 -0.209
201905 0.323 108.048 0.391
201908 0.291 108.245 0.352
201911 0.325 108.519 0.392
202002 0.018 109.139 0.022
202005 0.381 108.175 0.461
202008 1.043 109.662 1.245
202011 0.538 109.793 0.642
202102 -0.163 110.968 -0.192
202105 0.686 113.576 0.791
202108 0.545 115.421 0.618
202111 0.690 117.269 0.770
202202 -0.094 119.703 -0.103
202205 0.104 123.323 0.110
202208 0.360 124.958 0.377
202211 0.460 125.607 0.479
202302 0.671 126.928 0.692
202305 0.202 128.314 0.206
202308 0.598 129.538 0.604
202311 0.995 129.548 1.006
202402 -0.084 130.930 -0.084

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF 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 Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow 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 Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Costco Wholesale Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Costco Wholesale's Cyclically Adjusted Price-to-FCF 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