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Costco Wholesale (FRA:CTO) Cyclically Adjusted PS Ratio : 1.69 (As of Apr. 28, 2024)


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What is Costco Wholesale Cyclically Adjusted PS Ratio?

As of today (2024-04-28), Costco Wholesale's current share price is €682.10. Costco Wholesale's Cyclically Adjusted Revenue per Share for the quarter that ended in Feb. 2024 was €402.56. Costco Wholesale's Cyclically Adjusted PS Ratio for today is 1.69.

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

FRA:CTO' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.6   Med: 0.85   Max: 1.74
Current: 1.68

During the past years, Costco Wholesale's highest Cyclically Adjusted PS Ratio was 1.74. The lowest was 0.60. And the median was 0.85.

FRA:CTO's Cyclically Adjusted PS Ratio is ranked worse than
87.67% of 227 companies
in the Retail - Defensive industry
Industry Median: 0.37 vs FRA:CTO: 1.68

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 €121.811. 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 €402.56 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
=682.10/402.56
=1.69

* 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)
=121.811/129.4194*129.4194
=121.811

Current CPI (Feb. 2024) = 129.4194.

Costco Wholesale Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201405 42.415 100.373 54.690
201408 60.359 100.352 77.842
201411 48.725 99.635 63.291
201502 54.611 99.032 71.368
201505 52.717 100.333 68.000
201508 72.574 100.548 93.413
201511 57.476 100.135 74.285
201602 57.545 100.040 74.445
201605 53.651 101.355 68.506
201608 73.934 101.617 94.163
201611 59.129 101.829 75.150
201702 63.429 102.779 79.870
201705 59.218 103.256 74.223
201708 81.148 103.587 101.384
201711 61.475 104.072 76.447
201802 60.525 105.052 74.564
201805 61.980 106.148 75.568
201808 86.780 106.383 105.571
201811 69.703 106.338 84.833
201902 70.498 106.649 85.550
201905 70.164 108.048 84.042
201908 96.173 108.245 114.986
201911 75.553 108.519 90.104
202002 80.746 109.139 95.750
202005 76.991 108.175 92.111
202008 101.518 109.662 119.808
202011 82.257 109.793 96.961
202102 83.295 110.968 97.145
202105 83.902 113.576 95.606
202108 119.884 115.421 134.424
202111 99.230 117.269 109.511
202202 102.778 119.703 111.121
202205 111.839 123.323 117.368
202208 160.032 124.958 165.746
202211 120.133 125.607 123.779
202302 116.134 126.928 118.414
202305 111.072 128.314 112.029
202308 162.871 129.538 162.723
202311 120.175 129.548 120.056
202402 121.811 129.419 121.811

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  (FRA:CTO) 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 (FRA:CTO) 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.