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Costco WholesaleCOST -0.50%96 Owner Earnings per Share (TTM) is 20.94 as of May. 2026, which is 52% below its 10-year median of 43.39. GuruFocus rates COST with a GF Score™ of 96/100 and a GF Value™ of $1,022.85 (Fairly Valued). The stock has 1 warning sign investors should review. Among 178 Retail - Defensive companies, Costco Wholesale ranks worse than 87.64% on this metric.
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
Costco Wholesale's Owner Earnings per Share (TTM) ended in May. 2026 was $20.94. It's Price-to-Owner-Earnings ratio for today is 44.93.
The historical rank and industry rank for Costco Wholesale's Owner Earnings per Share (TTM) or its related term are showing as below:
COST'
s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 19.27 Med: 43.39 Max: 150.31
Current: 44.93
Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.
Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.
Costco Wholesale Owner Earnings per Share (TTM) Related Terms
Costco Wholesale Owner Earnings per Share (TTM) Historical Data
* Premium members only.
The historical data trend for Costco Wholesale's Owner Earnings per Share (TTM) 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.
Costco Wholesale Owner Earnings per Share (TTM) Chart
COST vs TGT, DG, DLTR: Owner Earnings per Share (TTM) Comparison
For the Discount Stores subindustry, Costco Wholesale's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings 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 Price-to-Owner-Earnings vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Price-to-Owner-Earnings distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's Price-to-Owner-Earnings falls into.
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
1. Start with "Net Income" from income statement. Costco Wholesale's Net Income for the trailing twelve months (TTM) ended in May. 2026 was $8,838 Mil.
3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income.
Costco Wholesale's Change In Deferred Tax for the trailing twelve months (TTM) ended in May. 2026 was $0 Mil.
4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $4,534 Mil
It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.
The following shows how to get maintenance capital expenditure.
First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.
Costco Wholesale's 5-Year Average Maintenance Capital Expenditure = $4,534 Mil
5. "Change In Working Capital" is from cashflow statement. Costco Wholesale's Change In Working Capital for the trailing twelve months (TTM) ended in May. 2026 was $2,436 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.
* 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.
What does a Owner Earnings per Share (TTM) of 20.94 mean?
Costco Wholesale (COST) has a Owner Earnings per Share (TTM) of 20.94 as of May. 2026. Warren Buffett defined owner earnings as reported earnings plus depreciation less average maintenance capital expenditure. View historical data on Costco Wholesale. This is 52% below median its historical median of 43.39. Over the past decade, Costco Wholesale's Owner Earnings per Share (TTM) has ranged from 19.27 to 150.31. According to the industry distribution chart, Costco Wholesale ranks #156 out of 178 companies in the Retail - Defensive industry, placing it in the top 87.6%.
Is Costco Wholesale's Owner Earnings per Share (TTM) too high?
Costco Wholesale's current Owner Earnings per Share (TTM) of 20.94 is 52% below median its 10-year median of 43.39. Over the past 10 years, this metric has ranged from a low of 19.27 to a high of 150.31. The Retail - Defensive industry median Owner Earnings per Share (TTM) is 11.64. Costco Wholesale's value of 20.94 is 79.9% above this industry median. Based on the distribution chart, Costco Wholesale ranks #156 out of 178 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Costco Wholesale has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Costco Wholesale's Owner Earnings per Share (TTM) compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #156 out of 178 companies for Owner Earnings per Share (TTM). This places Costco Wholesale in the lower half of its industry. The industry median Owner Earnings per Share (TTM) is 11.64. Costco Wholesale's value of 20.94 is 79.9% above this benchmark. Historically, Costco Wholesale's own Owner Earnings per Share (TTM) has ranged from 19.27 to 150.31 over the past decade. While the company's 10-year median is 43.39 vs. the industry median of 11.64, 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 Owner Earnings per Share (TTM) for a Retail - Defensive company?
The median Owner Earnings per Share (TTM) among Retail - Defensive companies is 11.64, based on 178 companies in the industry. Companies in the top quartile (top 25%) have a Owner Earnings per Share (TTM) significantly above this median, while those in the bottom quartile fall well below. However, Owner Earnings per Share (TTM) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current Owner Earnings per Share (TTM) of 20.94 is 79.9% 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 Owner Earnings per Share (TTM) mean?
A high Owner Earnings per Share (TTM) can signal that a stock is expensive relative to its fundamentals. Warren Buffett defined owner earnings as reported earnings plus depreciation less average maintenance capital expenditure. View historical data on Costco Wholesale. For the Retail - Defensive industry, the median Owner Earnings per Share (TTM) is 11.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current Owner Earnings per Share (TTM) is 20.94, which is 52% below median its own 10-year median of 43.39. 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 $1,022.85, compared to a current price of $940.87 — trading 8% below its estimated fair value. The current Owner Earnings per Share (TTM) is 20.94, which is 52% below median its 10-year median of 43.39 and 79.9% above the Retail - Defensive industry median of 11.64. Costco Wholesale's overall GF Score™ is 96/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Owner Earnings per Share (TTM) calculated?
Owner Earnings per Share (TTM) is calculated from a company's financial statements. For Costco Wholesale (COST), the current Owner Earnings per Share (TTM) is 20.94 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 $940.87 is trading 8% below its estimated GF Value™ of $1,022.85.
GuruFocus considers Costco Wholesale to be Fairly Valued.
Key valuation signals for COST:
Owner Earnings per Share (TTM): 20.94 (52% below median its 10-year median of 43.39)
GF Value™: $1,022.85 vs. price of $940.87 (8% below fair value)
Industry Position: 79.9% above the Retail - Defensive median (#156 of 178)
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.
96GF Score
Get the complete analysis for COST
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