PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Costco Wholesale's PE Ratio without NRI is 47.32. Costco Wholesale's 5-Year EBITDA growth rate is 13.10%. Therefore, Costco Wholesale's PEG Ratio for today is 3.61.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Costco Wholesale's PEG Ratio or its related term are showing as below:
COST'
s PEG Ratio Range Over the Past 10 Years
Min: 1.83 Med: 3.51 Max: 6.56
Current: 3.61
During the past 13 years, Costco Wholesale's highest PEG Ratio was 6.56. The lowest was 1.83. And the median was 3.51.
COST's PEG Ratio is ranked worse than 80.98% of 163
companies
in the Retail - Defensive industry
Industry Median: 1.29
vs COST: 3.61
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Costco Wholesale PEG Ratio Historical Data
The historical data trend for Costco Wholesale's PEG 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 Annual Data
Trend
Aug14
Aug15
Aug16
Aug17
Aug18
Aug19
Aug20
Aug21
Aug22
Aug23
PEG Ratio
5.47
5.73
4.06
3.33
2.87
Costco Wholesale Quarterly Data
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
May23
Aug23
Nov23
Feb24
PEG Ratio
2.78
2.88
2.87
2.93
3.52
Competitive Comparison
For the Discount Stores subindustry, Costco Wholesale's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio Distribution
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's PEG Ratio falls into.
Costco Wholesale PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
Costco Wholesale's PEG Ratio for today is calculated as
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Costco Wholesale (NAS:COST) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Costco Wholesale PEG Ratio Related Terms
Thank you for viewing the detailed overview of Costco Wholesale's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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