Costco Wholesale (COST) Margin of Safety % (DCF FCF Based): -71.67% (As of Jun. 24, 2026)


COST Costco Wholesale Corp COST
97 GF Score
Price $960.97
GF Value $1,014.93
Valuation Fairly Valued
! 1 Warning Sign
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What is Costco Wholesale Margin of Safety % (DCF FCF Based)?

Costco Wholesale COST +0.34% 97 Margin of Safety % (DCF FCF Based) is -71.67% as of Jun. 24, 2026. 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.

Margin of Safety % (DCF FCF Based) = (Intrinsic Value: DCF (FCF Based) - Current Price) / Intrinsic Value: DCF (FCF Based).

Note: Discounted FCF model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-24), Costco Wholesale's Predictability Rank is 4.5-Stars. Costco Wholesale's intrinsic value calculated from the Discounted FCF model is $421.23 and current share price is $960.97. Consequently,

Costco Wholesale's Margin of Safety % (DCF FCF Based) using Discounted FCF model is -71.67%.

COST vs TGT, DG, DLTR: Margin of Safety % (DCF FCF Based) Comparison

For the Discount Stores subindustry, Costco Wholesale's Margin of Safety % (DCF FCF Based), along with its competitors' market caps and Margin of Safety % (DCF FCF Based) 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 Margin of Safety % (DCF FCF Based) vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Margin of Safety % (DCF FCF Based) distribution charts can be found below:

* The bar in red indicates where Costco Wholesale's Margin of Safety % (DCF FCF Based) falls into.


COST
97GF Score
Costco Wholesale Corp COST
Margin of Safety % (DCF FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Costco Wholesale Margin of Safety % (DCF FCF Based) Calculation

Costco Wholesale's Margin of Safety % (DCF FCF Based) for today is calculated as

Margin of Safety % (DCF FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(559.77-960.97)/559.77
=-71.67 %

* 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.

The intrinsic value is calculated from the Discounted FCF model with default parameters. The calculation method is the same as Discounted Earnings model except free cash flow are used in the calculation instead of earnings per share.

What does a Margin of Safety % (DCF FCF Based) of -71.67% mean?
Costco Wholesale (COST) has a Margin of Safety % (DCF FCF Based) of -71.67% as of Jun. 24, 2026. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Costco Wholesale.
Is Costco Wholesale's Margin of Safety % (DCF FCF Based) too high?
Costco Wholesale's current Margin of Safety % (DCF FCF Based) is -71.67%. 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 Margin of Safety % (DCF FCF Based) compare to TGT and DG?
Costco Wholesale's Margin of Safety % (DCF FCF Based) of -71.67% can be compared against companies in the Retail - Defensive industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF FCF Based) for a Retail - Defensive company?
A good Margin of Safety % (DCF FCF Based) depends on the Retail - Defensive industry context. However, Margin of Safety % (DCF FCF Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF FCF Based) mean?
A high Margin of Safety % (DCF FCF Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Costco Wholesale. Costco Wholesale's current Margin of Safety % (DCF FCF Based) is -71.67%. 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 Margin of Safety % (DCF FCF Based) is -71.67%. 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 Margin of Safety % (DCF FCF Based) calculated?
Margin of Safety % (DCF FCF Based) is calculated from a company's financial statements. For Costco Wholesale (COST), the current Margin of Safety % (DCF FCF Based) is -71.67% 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 $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:

  • Margin of Safety % (DCF FCF Based): -71.67%
  • GF Value™: $1,014.93 vs. price of $960.97 (5.3% below fair value)
  • GF Score™: 97/100 with 1 warning sign

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.

Costco Wholesale Business Description

Address 999 Lake Drive, Issaquah, WA, USA, 98027
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

Margin of Safety % (DCF FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$960.97
Price
$1,014.93
GF Value