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Costco Wholesale (NEOE:COST) Cyclically Adjusted PB Ratio : 18.06 (As of Apr. 28, 2024)


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What is Costco Wholesale Cyclically Adjusted PB Ratio?

As of today (2024-04-28), Costco Wholesale's current share price is C$34.13. Costco Wholesale's Cyclically Adjusted Book per Share for the quarter that ended in Feb. 2024 was C$1.89. Costco Wholesale's Cyclically Adjusted PB Ratio for today is 18.06.

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

NEOE:COST' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 4.5   Med: 7.89   Max: 18.77
Current: 18.13

During the past years, Costco Wholesale's highest Cyclically Adjusted PB Ratio was 18.77. The lowest was 4.50. And the median was 7.89.

NEOE:COST's Cyclically Adjusted PB Ratio is ranked worse than
96.31% of 217 companies
in the Retail - Defensive industry
Industry Median: 1.58 vs NEOE:COST: 18.13

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 Feb. 2024 was C$2.430. 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 C$1.89 for the trailing ten years ended in Feb. 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
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
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 12.95 13.35 13.98 14.84 18.50

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
=34.13/1.89
=18.06

* 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 Feb. 2024 is calculated as:

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

Adj_Book=Book Value per Share/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=2.43/129.4194*129.4194
=2.430

Current CPI (Feb. 2024) = 129.4194.

Costco Wholesale Quarterly Data

Book Value per Share CPI Adj_Book
201405 1.130 100.373 1.457
201408 1.181 100.352 1.523
201411 1.222 99.635 1.587
201502 1.115 99.032 1.457
201505 1.128 100.333 1.455
201508 1.226 100.548 1.578
201511 1.260 100.135 1.628
201602 1.329 100.040 1.719
201605 1.307 101.355 1.669
201608 1.380 101.617 1.758
201611 1.408 101.829 1.789
201702 1.429 102.779 1.799
201705 1.181 103.256 1.480
201708 1.195 103.587 1.493
201711 1.239 104.072 1.541
201802 1.297 105.052 1.598
201805 1.370 106.148 1.670
201808 1.465 106.383 1.782
201811 1.518 106.338 1.848
201902 1.600 106.649 1.942
201905 1.705 108.048 2.042
201908 1.770 108.245 2.116
201911 1.828 108.519 2.180
202002 1.922 109.139 2.279
202005 2.045 108.175 2.447
202008 2.108 109.662 2.488
202011 1.687 109.793 1.989
202102 1.727 110.968 2.014
202105 1.738 113.576 1.980
202108 1.926 115.421 2.160
202111 2.012 117.269 2.220
202202 2.142 119.703 2.316
202205 2.229 123.323 2.339
202208 2.316 124.958 2.399
202211 2.503 125.607 2.579
202302 2.659 126.928 2.711
202305 2.765 128.314 2.789
202308 2.933 129.538 2.930
202311 3.106 129.548 3.103
202402 2.430 129.419 2.430

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  (NEOE:COST) 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 (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.