USD 99.94 as of today(2020-03-29). In depth view into COST Intrinsic Value: Projected FCF explanation, calculation, historical data and more" />Costco Wholesale Intrinsic Value: Projected FCF | COST - GuruFocus.com
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Costco Wholesale Intrinsic Value: Projected FCF

: USD 99.94 (As of Today)
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Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2020-03-29), Costco Wholesale's Intrinsic Value: Projected FCF is USD 99.94. The stock price of Costco Wholesale is USD 284.33. Therefore, Costco Wholesale's Price-to-Intrinsic-Value-Projected-FCF of today is 2.8.

NAS:COST' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 1.02   Med: 2.59   Max: 663
Current: 2.84

1.02
663

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Costco Wholesale was 663.00. The lowest was 1.02. And the median was 2.59.

NAS:COST's Price-to-Intrinsic-Value-Projected-FCF is ranked lower than
90% of the 162 Companies
in the Retail - Defensive industry.

( Industry Median: 0.94 vs. NAS:COST: 2.84 )

Costco Wholesale Intrinsic Value: Projected FCF Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Costco Wholesale Annual Data
Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19
Intrinsic Value: Projected FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 58.74 59.30 75.51 84.09 97.66

Costco Wholesale Quarterly Data
May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20
Intrinsic Value: Projected FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 83.54 84.37 97.66 100.38 99.94

Competitive Comparison
* 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.


Costco Wholesale Intrinsic Value: Projected FCF Distribution

* The bar in red indicates where Costco Wholesale's Intrinsic Value: Projected FCF falls into.



Costco Wholesale Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Costco Wholesale's Free Cash Flow(6 year avg) = USD 2,767.33.

Costco Wholesale's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Feb20)*0.8)/Shares Outstanding (Diluted Average)
=(11.222205783355*2767.3333333333+16614*0.8)/443.727
=99.94

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Costco Wholesale  (NAS:COST) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Costco Wholesale's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=284.33/99.941595029838
=2.84

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Costco Wholesale Intrinsic Value: Projected FCF Related Terms


Costco Wholesale Intrinsic Value: Projected FCF Headlines

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