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Costco Wholesale (NEOE:COST) Cyclically Adjusted PS Ratio : 1.67 (As of Apr. 30, 2024)


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What is Costco Wholesale Cyclically Adjusted PS Ratio?

As of today (2024-04-30), Costco Wholesale's current share price is C$33.96. Costco Wholesale's Cyclically Adjusted Revenue per Share for the quarter that ended in Feb. 2024 was C$20.39. Costco Wholesale's Cyclically Adjusted PS Ratio for today is 1.67.

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

NEOE:COST' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.6   Med: 0.86   Max: 1.74
Current: 1.67

During the past years, Costco Wholesale's highest Cyclically Adjusted PS Ratio was 1.74. The lowest was 0.60. And the median was 0.86.

NEOE:COST's Cyclically Adjusted PS Ratio is ranked worse than
88.21% of 229 companies
in the Retail - Defensive industry
Industry Median: 0.38 vs NEOE:COST: 1.67

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 C$6.822. 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 C$20.39 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
=33.96/20.39
=1.67

* 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)
=6.822/129.4194*129.4194
=6.822

Current CPI (Feb. 2024) = 129.4194.

Costco Wholesale Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201405 2.441 100.373 3.147
201408 3.377 100.352 4.355
201411 2.646 99.635 3.437
201502 2.980 99.032 3.894
201505 2.758 100.333 3.558
201508 4.086 100.548 5.259
201511 3.149 100.135 4.070
201602 3.385 100.040 4.379
201605 3.021 101.355 3.857
201608 4.143 101.617 5.277
201611 3.295 101.829 4.188
201702 3.405 102.779 4.288
201705 3.424 103.256 4.292
201708 4.645 103.587 5.803
201711 3.544 104.072 4.407
201802 3.617 105.052 4.456
201805 3.625 106.148 4.420
201808 5.026 106.383 6.114
201811 4.022 106.338 4.895
201902 4.065 106.649 4.933
201905 4.062 108.048 4.865
201908 5.460 108.245 6.528
201911 4.250 108.519 5.069
202002 4.499 109.139 5.335
202005 4.511 108.175 5.397
202008 6.112 109.662 7.213
202011 4.888 109.793 5.762
202102 4.918 110.968 5.736
202105 4.754 113.576 5.417
202108 6.834 115.421 7.663
202111 5.474 117.269 6.041
202202 5.703 119.703 6.166
202205 5.846 123.323 6.135
202208 8.054 124.958 8.342
202211 6.337 125.607 6.529
202302 6.433 126.928 6.559
202305 6.276 128.314 6.330
202308 9.206 129.538 9.198
202311 6.856 129.548 6.849
202402 6.822 129.419 6.822

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  (NEOE: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 (NEOE: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.