Costco Wholesale (COST) Moat Score: 8/10 (As of Jun. 26, 2026)


COST Costco Wholesale Corp COST
97 GF Score
Price $952.54
GF Value $1,015.53
Valuation Fairly Valued
! 1 Warning Sign
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What is Costco Wholesale Moat Score?

Costco Wholesale COST +1.09% 97 Moat Score is 8 as of Jun. 26, 2026. GuruFocus rates COST with a GF Score™ of 97/100 and a GF Value™ of $1,015.53 (Fairly Valued). The stock has 1 warning sign investors should review. Among 317 Retail - Defensive companies, Costco Wholesale ranks better than 99.37% on this metric.

Costco Wholesale has the Moat Score of 8, which implies that the company might have Wide Moat - Clear and robust wide moat.

Costco Wholesale has Wide Moat: Costco Wholesale Corp has a robust wide moat due to its strong brand, economies of scale, and customer loyalty. Its superior distribution network and pricing power further solidify its durable competitive advantages.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Costco Wholesale might have Wide Moat - Clear and robust wide moat.

Costco Wholesale  (NAS:COST) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Costco Wholesale Moat Score Related Terms

COST vs TGT, DG, DLTR: Moat Score Comparison

For the Discount Stores subindustry, Costco Wholesale's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Moat Score distribution charts can be found below:

* The bar in red indicates where Costco Wholesale's Moat Score falls into.


COST
97GF Score
Costco Wholesale Corp COST
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 8 mean?
Costco Wholesale (COST) has a Moat Score of 8 as of Jun. 26, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Costco Wholesale ranks #2 out of 317 companies in the Retail - Defensive industry, placing it in the top 0.59999999999999%.
Is Costco Wholesale's Moat Score too high?
Costco Wholesale's current Moat Score is 8. Based on the distribution chart, Costco Wholesale ranks #2 out of 317 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 Moat Score compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #2 out of 317 companies for Moat Score. This places Costco Wholesale in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Retail - Defensive company?
A good Moat Score depends on the Retail - Defensive industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Costco Wholesale's current Moat Score is 8. 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 $1,015.53, compared to a current price of $952.54 — trading 6.2% below its estimated fair value. The current Moat Score is 8. 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 Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Costco Wholesale (COST), the current Moat Score is 8 as of Jun. 26, 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 $952.54 is trading 6.2% below its estimated GF Value™ of $1,015.53. GuruFocus considers Costco Wholesale to be Fairly Valued.

Key valuation signals for COST:

  • Moat Score: 8
  • GF Value™: $1,015.53 vs. price of $952.54 (6.2% 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

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$952.54
Price
$1,015.53
GF Value