Costco Wholesale (NAS:COST) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Costco Wholesale Forward PE Ratio Related Terms
Costco Wholesale Forward PE Ratio Historical Data
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The historical data trend for Costco Wholesale's Forward PE Ratio 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.
Costco Wholesale Forward PE Ratio Chart
Costco Wholesale Annual Data
Trend
2016-08
2017-08
2018-08
2019-08
2020-08
2021-08
2022-08
2023-08
2024-08
2025-08
Forward PE Ratio
27.10
23.75
30.40
34.25
37.17
39.37
36.90
34.84
49.48
46.98
Costco Wholesale Quarterly Data
2015-11
2016-02
2016-05
2016-08
2016-11
2017-02
2017-05
2017-08
2017-11
2018-02
2018-05
2018-08
2018-11
2019-02
2019-05
2019-08
2019-11
2020-02
2020-05
2020-08
2020-11
2021-02
2021-05
2021-08
2021-11
2022-02
2022-05
2022-08
2022-11
2023-02
2023-05
2023-08
2023-11
2024-02
2024-05
2024-08
2024-11
2025-02
2025-05
2025-08
2025-11
2026-02
2026-05
Forward PE Ratio
28.17
23.75
24.45
27.10
25.25
29.76
27.62
23.75
26.67
27.32
25.77
30.40
29.76
28.09
28.25
34.25
34.72
32.57
32.57
37.17
39.68
33.33
34.01
39.37
45.05
41.49
32.68
36.90
37.04
34.01
32.89
34.84
38.17
46.95
46.51
49.48
54.38
56.71
52.03
46.98
45.51
49.55
44.39
COST vs TGT, DG, DLTR: Forward PE Ratio Comparison
For the Discount Stores subindustry, Costco Wholesale's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Costco Wholesale (COST) has a Forward PE Ratio of 41.96 as of Jul. 07, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Costco Wholesale and its competitors. According to the industry distribution chart, Costco Wholesale ranks #121 out of 129 companies in the Retail - Defensive industry, placing it in the top 93.8%.
Is Costco Wholesale's Forward PE Ratio too high?
Costco Wholesale's current Forward PE Ratio is 41.96. The Retail - Defensive industry median Forward PE Ratio is 14.37. Costco Wholesale's value of 41.96 is 192% above this industry median. Based on the distribution chart, Costco Wholesale ranks #121 out of 129 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. 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 Forward PE Ratio compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #121 out of 129 companies for Forward PE Ratio. This places Costco Wholesale in the lower half of its industry. The industry median Forward PE Ratio is 14.37. Costco Wholesale's value of 41.96 is 192% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Retail - Defensive company?
The median Forward PE Ratio among Retail - Defensive companies is 14.37, based on 129 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current Forward PE Ratio of 41.96 is 192% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Costco Wholesale and its competitors. For the Retail - Defensive industry, the median Forward PE Ratio is 14.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current Forward PE Ratio is 41.96. 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 $1,018.87, compared to a current price of $950.25 — trading 6.7% below its estimated fair value. The current Forward PE Ratio is 41.96 and 192% above the Retail - Defensive industry median of 14.37. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Costco Wholesale (COST), the current Forward PE Ratio is 41.96 as of Jul. 07, 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 $950.25 is trading 6.7% below its estimated GF Value™ of $1,018.87.
GuruFocus considers Costco Wholesale to be Fairly Valued.
Key valuation signals for COST:
Forward PE Ratio: 41.96
GF Value™: $1,018.87 vs. price of $950.25 (6.7% below fair value)
Industry Position: 192% above the Retail - Defensive median (#121 of 129)
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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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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