Costco WholesaleCOST +0.34%97 Interest Coverage is 87.97 as of May. 2026, which is 143% above its 10-year median of 36.19. 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 254 Retail - Defensive companies, Costco Wholesale ranks better than 83.86% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Costco Wholesale's
Operating Income
for the
three
months ended in May. 2026 was $2,815 Mil. Costco Wholesale's Interest Expense for the
three
months ended in May. 2026 was $-32 Mil.
Costco Wholesale's interest coverage for the quarter that ended in May. 2026 was 87.97.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Costco Wholesale Corp has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Costco Wholesale's Interest Coverage or its related term are showing as below:
COST'
s Interest Coverage Range Over the Past 10 Years
Min: 27.61 Med: 36.19 Max: 76.88
Current: 76.88
COST's Interest Coverage is ranked better than 83.86% of 254
companies
in the Retail - Defensive industry
Industry Median: 9.065
vs COST: 76.88
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Costco Wholesale Interest Coverage Related Terms
Costco Wholesale Interest Coverage Historical Data
* Premium members only.
The historical data trend for Costco Wholesale's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
COST vs TGT, DG, DLTR: Interest Coverage Comparison
For the Discount Stores subindustry, Costco Wholesale's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Interest Coverage of 87.97 as of May. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Costco Wholesale and its competitors. This is 143% above median its historical median of 36.19. Over the past decade, Costco Wholesale's Interest Coverage has ranged from 27.61 to 76.88. According to the industry distribution chart, Costco Wholesale ranks #41 out of 254 companies in the Retail - Defensive industry, placing it in the top 16.1%.
Is Costco Wholesale's Interest Coverage too high?
Costco Wholesale's current Interest Coverage of 87.97 is 143% above median its 10-year median of 36.19. Over the past 10 years, this metric has ranged from a low of 27.61 to a high of 76.88. The Retail - Defensive industry median Interest Coverage is 9.07. Costco Wholesale's value of 87.97 is 870.4% above this industry median. Based on the distribution chart, Costco Wholesale ranks #41 out of 254 companies in the Retail - Defensive industry, which is in the top quartile — a strong position 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 Interest Coverage compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #41 out of 254 companies for Interest Coverage. This places Costco Wholesale in the top 16% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 9.07. Costco Wholesale's value of 87.97 is 870.4% above this benchmark. Historically, Costco Wholesale's own Interest Coverage has ranged from 27.61 to 76.88 over the past decade. While the company's 10-year median is 36.19 vs. the industry median of 9.07, 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 Interest Coverage for a Retail - Defensive company?
The median Interest Coverage among Retail - Defensive companies is 9.07, based on 254 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current Interest Coverage of 87.97 is 870.4% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Costco Wholesale and its competitors. For the Retail - Defensive industry, the median Interest Coverage is 9.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current Interest Coverage is 87.97, which is 143% above median its own 10-year median of 36.19. 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 $960.97 — trading 5.3% below its estimated fair value. The current Interest Coverage is 87.97, which is 143% above median its 10-year median of 36.19 and 870.4% above the Retail - Defensive industry median of 9.07. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Costco Wholesale (COST), the current Interest Coverage is 87.97 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 $960.97 is trading 5.3% below its estimated GF Value™ of $1,014.93.
GuruFocus considers Costco Wholesale to be Fairly Valued.
Key valuation signals for COST:
Interest Coverage: 87.97 (143% above median its 10-year median of 36.19)
GF Value™: $1,014.93 vs. price of $960.97 (5.3% below fair value)
Industry Position: 870.4% above the Retail - Defensive median (#41 of 254)
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
Get the complete analysis for COST
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