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Costco Wholesale GF Value Rank

: 5 (As of Today)
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Costco Wholesale has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Discount Stores subindustry, Costco Wholesale's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

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

* The bar in red indicates where Costco Wholesale's GF Value Rank falls into.



Costco Wholesale GF Value Rank Related Terms

Thank you for viewing the detailed overview of Costco Wholesale's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Costco Wholesale Business Description

Costco Wholesale logo
Address
999 Lake Drive, Issaquah, WA, USA, 98027
The leading warehouse club, Costco has 815 stores worldwide (at the end of fiscal 2021), with most sales derived in the United States (72%) and Canada (14%). It sells memberships that allow customers to shop in its warehouses, which feature low prices on a limited product assortment. Costco mainly caters to individual shoppers, but roughly 20% of paid members carry business memberships. Food and sundries accounted for 40% of fiscal 2021 sales, with non-food merchandise 29%, warehouse ancillary and other businesses (such as fuel and pharmacy) nearly 17%, and fresh food 14%. Costco's warehouses average around 146,000 square feet; over 75% of its locations offer fuel. About 7% of Costco's global sales come from e-commerce (excluding same-day grocery and various other services).
Executives
Frates Caton officer: Executive Vice President 999 LAKE DRIVE ISSAQUAH WA 98027
Riel Pierre officer: EVP 999 LAKE DRIVE ISSAQUAH WA 98027
Adamo Claudine officer: Executive Vice President 999 LAKE DRIVE ISSAQUAH WA 98027
Sullivan John Christopher officer: Executive VP 999 LAKE DRIVE ISSAQUAH WA 98027
Rubananko Yoram officer: Executive VP 999 LAKE DRIVE ISSAQUAH WA 98027
Jewell Sarah Mr Sally director 1411 E MISSION AVE SPOKANE WA 99202
Callans Patrick J officer: Executive VP 999 LAKE DRIVE ISSAQUAH WA 98027
Miller Russell D officer: Executive Vice President 999 LAKE DRIVE ISSAQUAH WA 98027
Klauer James C officer: Executive Vice President 999 LAKE DRIVE ISSAQUAH WA 98027
Denman Kenneth D director
Hines Daniel M. other: Principal Acctg Officer 999 LAKE DRIVE ISSAQUAH WA 98027
Vachris Roland Michael officer: Executive VP 999 LAKE DRIVE ISSAQUAH WA 98027
Stanton John W director 3650 131ST AVE SE #400 WESTERN WIRELESS CORP BELLEVUE WA 98006
Wilderotter Mary Agnes director 115 ALPINE TERRACE OAKLAND CA 94618
Rose Timothy L. officer: Executive VP 999 LAKE DRIVE ISSAQUAH WA 98027

Costco Wholesale Headlines

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