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Costco Wholesale (COST) Cyclically Adjusted PS Ratio : 1.68 (As of Apr. 27, 2024)


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What is Costco Wholesale Cyclically Adjusted PS Ratio?

As of today (2024-04-27), Costco Wholesale's current share price is $729.18. Costco Wholesale's Cyclically Adjusted Revenue per Share for the quarter that ended in Feb. 2024 was $434.95. Costco Wholesale's Cyclically Adjusted PS Ratio for today is 1.68.

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

COST' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.6   Med: 0.85   Max: 1.74
Current: 1.68

During the past years, Costco Wholesale's highest Cyclically Adjusted PS Ratio was 1.74. The lowest was 0.60. And the median was 0.85.

COST's Cyclically Adjusted PS Ratio is ranked worse than
87.67% of 227 companies
in the Retail - Defensive industry
Industry Median: 0.37 vs COST: 1.68

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 PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Costco Wholesale's adjusted revenue per share data for the three months ended in Feb. 2024 was $131.403. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $434.95 for the trailing ten years ended in Feb. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Costco Wholesale Cyclically Adjusted PS Ratio Historical Data

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

Costco Wholesale Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.06 1.16 1.36 1.35 1.29

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 PS 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 1.20 1.24 1.29 1.38 1.71

Competitive Comparison of Costco Wholesale's Cyclically Adjusted PS Ratio

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

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

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



Costco Wholesale Cyclically Adjusted PS Ratio Calculation

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

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

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=729.18/434.95
=1.68

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

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

Adj_RevenuePerShare=Revenue per Share/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=131.403/129.4194*129.4194
=131.403

Current CPI (Feb. 2024) = 129.4194.

Costco Wholesale Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201405 58.263 100.373 75.124
201408 80.371 100.352 103.651
201411 60.754 99.635 78.916
201502 61.987 99.032 81.008
201505 58.901 100.333 75.977
201508 80.818 100.548 104.024
201511 61.669 100.135 79.704
201602 63.797 100.040 82.533
201605 60.692 101.355 77.497
201608 82.886 101.617 105.564
201611 63.785 101.829 81.067
201702 67.549 102.779 85.058
201705 65.434 103.256 82.014
201708 95.807 103.587 119.699
201711 72.154 104.072 89.727
201802 74.722 105.052 92.054
201805 73.262 106.148 89.324
201808 100.208 106.383 121.907
201811 79.207 106.338 96.400
201902 80.020 106.649 97.105
201905 78.483 108.048 94.007
201908 106.978 108.245 127.905
201911 83.484 108.519 99.563
202002 88.054 109.139 104.416
202005 83.960 108.175 100.448
202008 120.139 109.662 141.784
202011 97.231 109.793 114.611
202102 100.719 110.968 117.466
202105 101.946 113.576 116.167
202108 141.040 115.421 158.146
202111 113.276 117.269 125.012
202202 116.660 119.703 126.130
202205 118.224 123.323 124.069
202208 162.140 124.958 167.929
202211 122.459 125.607 126.175
202302 124.340 126.928 126.781
202305 120.731 128.314 121.771
202308 177.613 129.538 177.451
202311 130.060 129.548 129.931
202402 131.403 129.419 131.403

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue 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  (NAS:COST) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue 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 PS Ratio should give similar results to regular PS Ratio.


Costco Wholesale Cyclically Adjusted PS Ratio Related Terms

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


Costco Wholesale (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.
Executives
W Craig Jelinek officer: Executive VP 999 LAKE DRIVE, ISSAQUAH WA 98027
Yoram Rubananko officer: Executive VP 999 LAKE DRIVE, ISSAQUAH WA 98027
Caton Frates officer: Executive Vice President 999 LAKE DRIVE, ISSAQUAH WA 98027
Daniel M. Hines other: Principal Acctg Officer 999 LAKE DRIVE, ISSAQUAH WA 98027
Richard A Galanti director, officer: Executive VP and CFO 999 LAKE DRIVE, ISSAQUAH WA 98027
Pierre Riel officer: EVP 999 LAKE DRIVE, ISSAQUAH WA 98027
Russell D Miller officer: Executive Vice President 999 LAKE DRIVE, ISSAQUAH WA 98027
Claudine Adamo officer: Executive Vice President 999 LAKE DRIVE, ISSAQUAH WA 98027
James C Klauer officer: Executive Vice President 999 LAKE DRIVE, ISSAQUAH WA 98027
Patrick J Callans officer: Executive VP 999 LAKE DRIVE, ISSAQUAH WA 98027
Helena Foulkes director ONE CVS DRIVE, WOONSOCKET RI 02895
Susan L Decker director C/O YAHOO INC, 701 FIRST AVE, SUNNYVALE CA 94089
Roland Michael Vachris officer: Executive VP 999 LAKE DRIVE, ISSAQUAH WA 98027
James P. Murphy officer: Executive VP 999 LAKE DRIVE, ISSAQUAH WA 98027
Kenneth D Denman director