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Costco WholesaleCOST -0.13%96 Earnings Yield (Joel Greenblatt) % is 2.89% as of May. 2026, which is 21% below its 10-year median of 3.67. GuruFocus rates COST with a GF Score™ of 96/100 and a GF Value™ of $1,024.69 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 316 Retail - Defensive companies, Costco Wholesale ranks worse than 70.25% on this metric.
Costco Wholesale's Enterprise Value for the quarter that ended in May. 2026 was $412,248 Mil.
Costco Wholesale's EBIT for the trailing twelve months (TTM) ended in May. 2026 was $11,898 Mil. Costco Wholesale's Earnings Yield (Joel Greenblatt) for the quarter that ended in May. 2026 was 2.89%.
The historical rank and industry rank for Costco Wholesale's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
COST'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.14 Med: 3.67 Max: 6.04
Current: 2.98
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Costco Wholesale was 6.04%. The lowest was 2.14%. And the median was 3.67%.
COST's Earnings Yield (Joel Greenblatt) % is ranked worse than 70.25% of 316
companies
in the Retail - Defensive industry
Industry Median: 6.235
vs COST: 2.98
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Costco Wholesale's Forward Rate of Return (Yacktman) % for the quarter that ended in May. 2026 was 12.97%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Costco Wholesale Earnings Yield (Joel Greenblatt) % Related Terms
Costco Wholesale Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Costco Wholesale's Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Costco Wholesales Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Aug. 2025 is calculated as
Costco Wholesale's EBIT for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $11,898 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 2.89% mean?
Costco Wholesale (COST) has a Earnings Yield (Joel Greenblatt) % of 2.89% as of May. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Costco Wholesale and its competitors. This is 21% below median its historical median of 3.67. Over the past decade, Costco Wholesale's Earnings Yield (Joel Greenblatt) % has ranged from 2.14 to 6.04. According to the industry distribution chart, Costco Wholesale ranks #222 out of 316 companies in the Retail - Defensive industry, placing it in the top 70.3%.
Is Costco Wholesale's Earnings Yield (Joel Greenblatt) % too high?
Costco Wholesale's current Earnings Yield (Joel Greenblatt) % of 2.89% is 21% below median its 10-year median of 3.67. Over the past 10 years, this metric has ranged from a low of 2.14 to a high of 6.04. The Retail - Defensive industry median Earnings Yield (Joel Greenblatt) % is 6.24. Costco Wholesale's value of 2.89% is 53.6% below this industry median. Based on the distribution chart, Costco Wholesale ranks #222 out of 316 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Costco Wholesale has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Costco Wholesale's Earnings Yield (Joel Greenblatt) % compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #222 out of 316 companies for Earnings Yield (Joel Greenblatt) %. This places Costco Wholesale in the lower half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 6.24. Costco Wholesale's value of 2.89% is 53.6% below this benchmark. Historically, Costco Wholesale's own Earnings Yield (Joel Greenblatt) % has ranged from 2.14 to 6.04 over the past decade. While the company's 10-year median is 3.67 vs. the industry median of 6.24, 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 Earnings Yield (Joel Greenblatt) % for a Retail - Defensive company?
The median Earnings Yield (Joel Greenblatt) % among Retail - Defensive companies is 6.24, based on 316 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current Earnings Yield (Joel Greenblatt) % of 2.89% is 53.6% 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 Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Costco Wholesale and its competitors. For the Retail - Defensive industry, the median Earnings Yield (Joel Greenblatt) % is 6.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current Earnings Yield (Joel Greenblatt) % is 2.89%, which is 21% below median its own 10-year median of 3.67. 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 $1,024.69, compared to a current price of $926.06 — trading 9.6% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 2.89%, which is 21% below median its 10-year median of 3.67 and 53.6% below the Retail - Defensive industry median of 6.24. Costco Wholesale's overall GF Score™ is 96/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Costco Wholesale (COST), the current Earnings Yield (Joel Greenblatt) % is 2.89% 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 $926.06 is trading 9.6% below its estimated GF Value™ of $1,024.69.
GuruFocus considers Costco Wholesale to be Modestly Undervalued.
Key valuation signals for COST:
Earnings Yield (Joel Greenblatt) %: 2.89% (21% below median its 10-year median of 3.67)
GF Value™: $1,024.69 vs. price of $926.06 (9.6% below fair value)
Industry Position: 53.6% below the Retail - Defensive median (#222 of 316)
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.
96GF Score
Get the complete analysis for COST
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