Costco WholesaleCOST +0.36%97 Debt-to-EBITDA is 0.57 as of May. 2026, which is 46% below its 10-year median of 1.05. GuruFocus rates COST with a GF Score™ of 97/100 and a GF Value™ of $1,020.36 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 256 Retail - Defensive companies, Costco Wholesale ranks better than 83.2% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Costco Wholesale's Debt-to-EBITDA or its related term are showing as below:
COST'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.56 Med: 1.05 Max: 1.42
Current: 0.56
During the past 13 years, the highest Debt-to-EBITDA Ratio of Costco Wholesale was 1.42. The lowest was 0.56. And the median was 1.05.
COST's Debt-to-EBITDA is ranked better than 83.2% of 256
companies
in the Retail - Defensive industry
Industry Median: 2.215
vs COST: 0.56
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Costco Wholesale Debt-to-EBITDA Related Terms
Costco Wholesale Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Costco Wholesale's Debt-to-EBITDA 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.
For the Discount Stores subindustry, Costco Wholesale's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (May. 2026) EBITDA data.
Costco Wholesale (COST) has a Debt-to-EBITDA of 0.57 as of May. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Costco Wholesale. This is 46% below median its historical median of 1.05. Over the past decade, Costco Wholesale's Debt-to-EBITDA has ranged from 0.56 to 1.42. According to the industry distribution chart, Costco Wholesale ranks #43 out of 256 companies in the Retail - Defensive industry, placing it in the top 16.8%.
Is Costco Wholesale's Debt-to-EBITDA too high?
Costco Wholesale's current Debt-to-EBITDA of 0.57 is 46% below median its 10-year median of 1.05. Over the past 10 years, this metric has ranged from a low of 0.56 to a high of 1.42. The Retail - Defensive industry median Debt-to-EBITDA is 2.22. Costco Wholesale's value of 0.57 is 74.3% below this industry median. Based on the distribution chart, Costco Wholesale ranks #43 out of 256 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, Costco Wholesale has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Costco Wholesale's Debt-to-EBITDA compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #43 out of 256 companies for Debt-to-EBITDA. This places Costco Wholesale in the top 17% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 2.22. Costco Wholesale's value of 0.57 is 74.3% below this benchmark. Historically, Costco Wholesale's own Debt-to-EBITDA has ranged from 0.56 to 1.42 over the past decade. While the company's 10-year median is 1.05 vs. the industry median of 2.22, Costco Wholesale has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Retail - Defensive company?
The median Debt-to-EBITDA among Retail - Defensive companies is 2.22, based on 256 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current Debt-to-EBITDA of 0.57 is 74.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Costco Wholesale. For the Retail - Defensive industry, the median Debt-to-EBITDA is 2.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current Debt-to-EBITDA is 0.57, which is 46% below median its own 10-year median of 1.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Costco Wholesale stock overvalued right now?
Based on GuruFocus' analysis, Costco Wholesale (COST) is currently considered Modestly Undervalued. The stock's GF Value™ is $1,020.36, compared to a current price of $916.25 — trading 10.2% below its estimated fair value. The current Debt-to-EBITDA is 0.57, which is 46% below median its 10-year median of 1.05 and 74.3% below the Retail - Defensive industry median of 2.22. Costco Wholesale's overall GF Score™ is 97/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Costco Wholesale (COST), the current Debt-to-EBITDA is 0.57 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Costco Wholesale (COST) Overvalued in 2026?
Based on GuruFocus' analysis, Costco Wholesale stock appears to be undervalued.
The current stock price of $916.25 is trading 10.2% below its estimated GF Value™ of $1,020.36.
GuruFocus considers Costco Wholesale to be Modestly Undervalued.
Key valuation signals for COST:
Debt-to-EBITDA: 0.57 (46% below median its 10-year median of 1.05)
GF Value™: $1,020.36 vs. price of $916.25 (10.2% below fair value)
Industry Position: 74.3% below the Retail - Defensive median (#43 of 256)
No single metric tells the full story. See the COST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1983, Costco Wholesale now operates a global chain of membership-based warehouse clubs, delivering high-quality goods and services at consistently low prices. As of its most recent fiscal year, Costco operated approximately 910 warehouses, serving more than 80 million members across its three geographic segments: Costco US (approximately 73% of total revenue), Costco Canada (13%), and Costco International (14%).Costco's core value proposition—quality products at unbeatable prices—has yielded consistently strong member renewal rates (93% in the US and Canada and nearly 90% internationally). About 55% of Costco's fiscal 2025 revenue came from its grocery offerings, and another 25% from general merchandise.
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