Costco Wholesale's Enterprise Value for the quarter that ended in Feb. 2024 was R$1,653,949 Mil.
Costco Wholesale's EBIT for the trailing twelve months (TTM) ended in Feb. 2024 was R$45,600 Mil. Costco Wholesale's Earnings Yield (Joel Greenblatt) for the quarter that ended in Feb. 2024 was 2.81%.
The historical rank and industry rank for Costco Wholesale's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
BSP:COWC34'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 2.77 Med: 4.77 Max: 6.78
Current: 2.94
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Costco Wholesale was 6.78%. The lowest was 2.77%. And the median was 4.77%.
BSP:COWC34's Earnings Yield (Joel Greenblatt) % is ranked worse than 72.96% of 318
companies
in the Retail - Defensive industry
Industry Median: 6.505
vs BSP:COWC34: 2.94
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 Feb. 2024 was 15.49%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven 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.
Costco Wholesale Earnings Yield (Joel Greenblatt) % Historical Data
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) % Distribution
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. 2023 is calculated as
Costco Wholesale's EBIT for the trailing twelve months (TTM) ended in Feb. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was R$45,600 Mil.
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
Thank you for viewing the detailed overview of Costco Wholesale's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.
Costco Wholesale (BSP:COWC34) Business Description
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.
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