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Costco WholesaleCOST -0.50%96 EV-to-EBIT is 34.07 as of Jul. 18, 2026, which is 25% above its 10-year median of 27.25. GuruFocus rates COST with a GF Score™ of 96/100 and a GF Value™ of $1,023.16 (Fairly Valued). The stock has 1 warning sign investors should review. Among 261 Retail - Defensive companies, Costco Wholesale ranks worse than 86.21% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
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 adds up the quarterly data reported by the company within the most recent 12 months, which was $11,898 Mil.
* 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 EV-to-EBIT Related Terms
Costco Wholesale EV-to-EBIT Historical Data
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The historical data trend for Costco Wholesale's EV-to-EBIT 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 EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's EV-to-EBIT falls into.
Costco Wholesale's current Enterprise Value is $405,396 Mil.
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.
* 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 (COST) has a EV-to-EBIT of 34.07 as of Jul. 18, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Costco Wholesale and its competitors. This is 25% above median its historical median of 27.25. Over the past decade, Costco Wholesale's EV-to-EBIT has ranged from 16.55 to 46.80. According to the industry distribution chart, Costco Wholesale ranks #225 out of 261 companies in the Retail - Defensive industry, placing it in the top 86.2%.
Is Costco Wholesale's EV-to-EBIT too high?
Costco Wholesale's current EV-to-EBIT of 34.07 is 25% above median its 10-year median of 27.25. Over the past 10 years, this metric has ranged from a low of 16.55 to a high of 46.80. The Retail - Defensive industry median EV-to-EBIT is 13.41. Costco Wholesale's value of 34.07 is 154.1% above this industry median. Based on the distribution chart, Costco Wholesale ranks #225 out of 261 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Costco Wholesale has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Costco Wholesale's EV-to-EBIT compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #225 out of 261 companies for EV-to-EBIT. This places Costco Wholesale in the lower half of its industry. The industry median EV-to-EBIT is 13.41. Costco Wholesale's value of 34.07 is 154.1% above this benchmark. Historically, Costco Wholesale's own EV-to-EBIT has ranged from 16.55 to 46.80 over the past decade. While the company's 10-year median is 27.25 vs. the industry median of 13.41, Costco Wholesale has consistently been above 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 EV-to-EBIT for a Retail - Defensive company?
The median EV-to-EBIT among Retail - Defensive companies is 13.41, based on 261 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current EV-to-EBIT of 34.07 is 154.1% above 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Costco Wholesale and its competitors. For the Retail - Defensive industry, the median EV-to-EBIT is 13.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current EV-to-EBIT is 34.07, which is 25% above median its own 10-year median of 27.25. 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 Fairly Valued. The stock's GF Value™ is $1,023.16, compared to a current price of $940.87 — trading 8% below its estimated fair value. The current EV-to-EBIT is 34.07, which is 25% above median its 10-year median of 27.25 and 154.1% above the Retail - Defensive industry median of 13.41. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Costco Wholesale (COST), the current EV-to-EBIT is 34.07 as of Jul. 18, 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 $940.87 is trading 8% below its estimated GF Value™ of $1,023.16.
GuruFocus considers Costco Wholesale to be Fairly Valued.
Key valuation signals for COST:
EV-to-EBIT: 34.07 (25% above median its 10-year median of 27.25)
GF Value™: $1,023.16 vs. price of $940.87 (8% below fair value)
Industry Position: 154.1% above the Retail - Defensive median (#225 of 261)
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
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