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Costco Wholesale (NEOE:COST) Margin of Safety % (DCF FCF Based) : -158.61% (As of Dec. 12, 2024)


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What is Costco Wholesale Margin of Safety % (DCF FCF Based)?

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 (2024-12-12), Costco Wholesale's Predictability Rank is 4-Stars. Costco Wholesale's intrinsic value calculated from the Discounted FCF model is C$15.97 and current share price is C$46.11. Consequently,

Costco Wholesale's Margin of Safety % (DCF FCF Based) using Discounted FCF model is -158.61%.

Competitive Comparison of Costco Wholesale's Margin of Safety % (DCF FCF Based)

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's Margin of Safety % (DCF FCF Based) Distribution in the 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.


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)
=(17.83-46.11)/17.83
=-158.61 %

* 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.

Costco Wholesale Margin of Safety % (DCF FCF Based) Related Terms

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Costco Wholesale Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Costco Wholesale Corp (NEOE:COST) » Definitions » Margin of Safety % (DCF FCF Based)
Comparable Companies
WMT TGT DG DLTR BJ OLLI TBBB PSMT BIGGQ MEX:WALMEX TSX:DOL BOM:540376 TSE:7532 LSE:BME TSE:141A WAR:PCO TSE:2782 XKRX:139480 OSL:EPR XMAD:DIA
Traded in Other Exchanges
COST:USA COST:Peru COST:Mexico 1COST:Italy 0I47:UK CTO0:Germany CTO:Germany CTO:Germany CTO:Germany COST:Chile COWC34:Brazil COST:Austria COST:Argentina
Address
999 Lake Drive, Issaquah, WA, USA, 98027
Website
https://www.costco.com
Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco's frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates over 600 warehouses in the United States and boasts over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the UK.