Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2024-04-16), Costco Wholesale's Intrinsic Value: Projected FCF is $197.51. The stock price of Costco Wholesale is $718.03. Therefore, Costco Wholesale's Price-to-Intrinsic-Value-Projected-FCF of today is 3.6.
The historical rank and industry rank for Costco Wholesale's Intrinsic Value: Projected FCF or its related term are showing as below:
COST'
s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.57 Med: 2.71 Max: 3.77
Current: 3.64
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Costco Wholesale was 3.77. The lowest was 1.57. And the median was 2.71.
COST's Price-to-Projected-FCF is ranked worse than 93.75% of 224
companies
in the Retail - Defensive industry
Industry Median: 0.88
vs COST: 3.64
Costco Wholesale Intrinsic Value: Projected FCF Historical Data
The historical data trend for Costco Wholesale's Intrinsic Value: Projected 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 Annual Data
Trend
Aug14
Aug15
Aug16
Aug17
Aug18
Aug19
Aug20
Aug21
Aug22
Aug23
Intrinsic Value: Projected FCF
91.12
116.06
140.36
164.42
198.60
Costco Wholesale Quarterly Data
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Aug22
Nov22
Feb23
May23
Aug23
Nov23
Feb24
Intrinsic Value: Projected FCF
184.70
184.14
198.60
215.31
197.51
Competitive Comparison
For the Discount Stores subindustry, Costco Wholesale's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-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 Price-to-Projected-FCF Distribution
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's Price-to-Projected-FCF falls into.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
* 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.
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Costco Wholesale's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF
=
Share Price
/
Intrinsic Value: Projected FCF
=
718.03
/
197.50631761929
=
3.64
* 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 Intrinsic Value: Projected FCF Related Terms
Thank you for viewing the detailed overview of Costco Wholesale's Intrinsic Value: Projected FCF 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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