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

Costco Wholesale (CHIX:CTOD) Cyclically Adjusted PB Ratio : 19.63 (As of Jun. 20, 2024)


View and export this data going back to 2023. Start your Free Trial

What is Costco Wholesale Cyclically Adjusted PB Ratio?

As of today (2024-06-20), Costco Wholesale's current share price is €748.50. Costco Wholesale's Cyclically Adjusted Book per Share for the quarter that ended in May. 2024 was €38.14. Costco Wholesale's Cyclically Adjusted PB Ratio for today is 19.63.

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

CHIX:CTOd' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 4.5   Med: 8.19   Max: 21.1
Current: 21.1

During the past years, Costco Wholesale's highest Cyclically Adjusted PB Ratio was 21.10. The lowest was 4.50. And the median was 8.19.

CHIX:CTOd's Cyclically Adjusted PB Ratio is ranked worse than
96.93% of 228 companies
in the Retail - Defensive industry
Industry Median: 1.615 vs CHIX:CTOd: 21.10

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 May. 2024 was €45.424. 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 €38.14 for the trailing ten years ended in May. 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
Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24
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 13.35 13.98 14.84 18.29 19.62

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
=748.50/38.14
=19.63

* 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 May. 2024 is calculated as:

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

Adj_Book=Book Value per Share/CPI of May. 2024 (Change)*Current CPI (May. 2024)
=45.424/132.2892*132.2892
=45.424

Current CPI (May. 2024) = 132.2892.

Costco Wholesale Quarterly Data

Book Value per Share CPI Adj_Book
201408 21.110 100.352 27.828
201411 22.502 99.635 29.877
201502 20.436 99.032 27.299
201505 21.560 100.333 28.427
201508 21.770 100.548 28.642
201511 22.990 100.135 30.372
201602 22.600 100.040 29.885
201605 23.217 101.355 30.303
201608 24.626 101.617 32.059
201611 25.269 101.829 32.828
201702 26.612 102.779 34.253
201705 20.424 103.256 26.167
201708 20.880 103.587 26.665
201711 21.491 104.072 27.318
201802 21.696 105.052 27.321
201805 23.422 106.148 29.190
201808 25.295 106.383 31.455
201811 26.301 106.338 32.720
201902 27.755 106.649 34.428
201905 29.447 108.048 36.054
201908 31.171 108.245 38.095
201911 32.492 108.519 39.609
202002 34.501 109.139 41.819
202005 34.896 108.175 42.675
202008 35.014 109.662 42.239
202011 28.381 109.793 34.196
202102 29.250 110.968 34.870
202105 30.685 113.576 35.741
202108 33.790 115.421 38.728
202111 36.473 117.269 41.145
202202 38.597 119.703 42.655
202205 42.644 123.323 45.745
202208 46.025 124.958 48.725
202211 47.456 125.607 49.980
202302 48.005 126.928 50.033
202305 48.928 128.314 50.444
202308 51.894 129.538 52.996
202311 54.440 129.548 55.592
202402 43.392 130.930 43.842
202405 45.424 132.289 45.424

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  (CHIX:CTOd) 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 (CHIX:CTOD) 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 (CHIX:CTOD) Headlines

No Headlines