Costco WholesaleCOST +1.09%97 PEG Ratio is 3.77 as of Jun. 26, 2026, which is 10% below its 10-year median of 4.18. 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 155 Retail - Defensive companies, Costco Wholesale ranks worse than 77.42% on this metric.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Costco Wholesale's PEG Ratio or its related term are showing as below:
COST'
s PEG Ratio Range Over the Past 10 Years
Min: 2.7 Med: 4.18 Max: 6.56
Current: 3.77
During the past 13 years, Costco Wholesale's highest PEG Ratio was 6.56. The lowest was 2.70. And the median was 4.18.
COST's PEG Ratio is ranked worse than 77.42% of 155
companies
in the Retail - Defensive industry
Industry Median: 1.67
vs COST: 3.77
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Costco Wholesale (NAS:COST) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
Costco Wholesale PEG Ratio Related Terms
Costco Wholesale PEG Ratio Historical Data
* Premium members only.
The historical data trend for Costco Wholesale's PEG Ratio 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.
For the Discount Stores subindustry, Costco Wholesale's PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's PEG Ratio falls into.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Costco Wholesale (COST) has a PEG Ratio of 3.77 as of Jun. 26, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Costco Wholesale and its competitors. This is 10% below median its historical median of 4.18. Over the past decade, Costco Wholesale's PEG Ratio has ranged from 2.70 to 6.56. According to the industry distribution chart, Costco Wholesale ranks #120 out of 155 companies in the Retail - Defensive industry, placing it in the top 77.4%.
Is Costco Wholesale's PEG Ratio too high?
Costco Wholesale's current PEG Ratio of 3.77 is 10% below median its 10-year median of 4.18. Over the past 10 years, this metric has ranged from a low of 2.70 to a high of 6.56. The Retail - Defensive industry median PEG Ratio is 1.67. Costco Wholesale's value of 3.77 is 125.7% above this industry median. Based on the distribution chart, Costco Wholesale ranks #120 out of 155 companies in the Retail - Defensive industry, which is in the bottom quartile 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 PEG Ratio compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #120 out of 155 companies for PEG Ratio. This places Costco Wholesale in the lower half of its industry. The industry median PEG Ratio is 1.67. Costco Wholesale's value of 3.77 is 125.7% above this benchmark. Historically, Costco Wholesale's own PEG Ratio has ranged from 2.70 to 6.56 over the past decade. While the company's 10-year median is 4.18 vs. the industry median of 1.67, 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 PEG Ratio for a Retail - Defensive company?
The median PEG Ratio among Retail - Defensive companies is 1.67, based on 155 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current PEG Ratio of 3.77 is 125.7% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Costco Wholesale and its competitors. For the Retail - Defensive industry, the median PEG Ratio is 1.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current PEG Ratio is 3.77, which is 10% below median its own 10-year median of 4.18. 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 PEG Ratio is 3.77, which is 10% below median its 10-year median of 4.18 and 125.7% above the Retail - Defensive industry median of 1.67. 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 PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Costco Wholesale (COST), the current PEG Ratio is 3.77 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:
PEG Ratio: 3.77 (10% below median its 10-year median of 4.18)
GF Value™: $1,015.53 vs. price of $952.54 (6.2% below fair value)
Industry Position: 125.7% above the Retail - Defensive median (#120 of 155)
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.
97GF Score
Get the complete analysis for COST
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