Costco WholesaleCOST +0.67%97 FCF Yield % is 2.06 as of Jun. 24, 2026, which is 19% below its 10-year median of 2.55. GuruFocus rates COST with a GF Score™ of 97/100 and a GF Value™ of $1,014.93 (Fairly Valued). The stock has 1 warning sign investors should review. Among 312 Retail - Defensive companies, Costco Wholesale ranks worse than 56.41% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Costco Wholesale FCF Yield % Related Terms
Costco Wholesale FCF Yield % Historical Data
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The historical data trend for Costco Wholesale's FCF Yield % 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 FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's FCF Yield % 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.
Costco Wholesale (COST) has a FCF Yield % of 2.06 as of Jun. 24, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Costco Wholesale and its competitors. This is 19% below median its historical median of 2.55. Over the past decade, Costco Wholesale's FCF Yield % has ranged from 0.92 to 6.09. According to the industry distribution chart, Costco Wholesale ranks #176 out of 312 companies in the Retail - Defensive industry, placing it in the top 56.4%.
Is Costco Wholesale's FCF Yield % too high?
Costco Wholesale's current FCF Yield % of 2.06 is 19% below median its 10-year median of 2.55. Over the past 10 years, this metric has ranged from a low of 0.92 to a high of 6.09. The Retail - Defensive industry median FCF Yield % is 3.34. Costco Wholesale's value of 2.06 is 38.3% below this industry median. Based on the distribution chart, Costco Wholesale ranks #176 out of 312 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Costco Wholesale has a GF Score™ of 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Costco Wholesale's FCF Yield % compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #176 out of 312 companies for FCF Yield %. This places Costco Wholesale in the lower half of its industry. The industry median FCF Yield % is 3.34. Costco Wholesale's value of 2.06 is 38.3% below this benchmark. Historically, Costco Wholesale's own FCF Yield % has ranged from 0.92 to 6.09 over the past decade. While the company's 10-year median is 2.55 vs. the industry median of 3.34, 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 FCF Yield % for a Retail - Defensive company?
The median FCF Yield % among Retail - Defensive companies is 3.34, based on 312 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current FCF Yield % of 2.06 is 38.3% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Costco Wholesale and its competitors. For the Retail - Defensive industry, the median FCF Yield % is 3.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current FCF Yield % is 2.06, which is 19% below median its own 10-year median of 2.55. 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 $1,014.93, compared to a current price of $964.11 — trading 5% below its estimated fair value. The current FCF Yield % is 2.06, which is 19% below median its 10-year median of 2.55 and 38.3% below the Retail - Defensive industry median of 3.34. 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 FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Costco Wholesale (COST), the current FCF Yield % is 2.06 as of Jun. 24, 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 $964.11 is trading 5% below its estimated GF Value™ of $1,014.93.
GuruFocus considers Costco Wholesale to be Fairly Valued.
Key valuation signals for COST:
FCF Yield %: 2.06 (19% below median its 10-year median of 2.55)
GF Value™: $1,014.93 vs. price of $964.11 (5% below fair value)
Industry Position: 38.3% below the Retail - Defensive median (#176 of 312)
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.
97GF Score
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