Costco WholesaleCOST -0.15%96 Return-on-Tangible-Asset is 10.31% as of May. 2026, which is 20% above its 10-year median of 8.61. GuruFocus rates COST with a GF Score™ of 96/100 and a GF Value™ of $1,018.57 (Fairly Valued). The stock has 1 warning sign investors should review. Among 312 Retail - Defensive companies, Costco Wholesale ranks better than 87.5% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Costco Wholesale's annualizedNet Income for the quarter that ended in May. 2026 was $8,768 Mil. Costco Wholesale's average total tangible assets for the quarter that ended in May. 2026 was $85,035 Mil. Therefore, Costco Wholesale's annualized Return-on-Tangible-Asset for the quarter that ended in May. 2026 was 10.31%.
The historical rank and industry rank for Costco Wholesale's Return-on-Tangible-Asset or its related term are showing as below:
COST'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 7.1 Med: 8.61 Max: 11.02
Current: 10.9
During the past 13 years, Costco Wholesale's highest Return-on-Tangible-Asset was 11.02%. The lowest was 7.10%. And the median was 8.61%.
COST's Return-on-Tangible-Asset is ranked better than 87.5% of 312
companies
in the Retail - Defensive industry
Industry Median: 3.88
vs COST: 10.90
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Costco Wholesale Return-on-Tangible-Asset Related Terms
Costco Wholesale Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Costco Wholesale's Return-on-Tangible-Asset 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.
COST vs TGT, DG, DLTR: Return-on-Tangible-Asset Comparison
For the Discount Stores subindustry, Costco Wholesale's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (May. 2026) net income data.
What does a Return-on-Tangible-Asset of 10.31% mean?
Costco Wholesale (COST) has a Return-on-Tangible-Asset of 10.31% as of May. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Costco Wholesale and its competitors. This is 20% above median its historical median of 8.61. Over the past decade, Costco Wholesale's Return-on-Tangible-Asset has ranged from 7.10 to 11.02. According to the industry distribution chart, Costco Wholesale ranks #39 out of 312 companies in the Retail - Defensive industry, placing it in the top 12.5%.
Is Costco Wholesale's Return-on-Tangible-Asset too high?
Costco Wholesale's current Return-on-Tangible-Asset of 10.31% is 20% above median its 10-year median of 8.61. Over the past 10 years, this metric has ranged from a low of 7.10 to a high of 11.02. The Retail - Defensive industry median Return-on-Tangible-Asset is 3.88. Costco Wholesale's value of 10.31% is 165.7% above this industry median. Based on the distribution chart, Costco Wholesale ranks #39 out of 312 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 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Costco Wholesale's Return-on-Tangible-Asset compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #39 out of 312 companies for Return-on-Tangible-Asset. This places Costco Wholesale in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.88. Costco Wholesale's value of 10.31% is 165.7% above this benchmark. Historically, Costco Wholesale's own Return-on-Tangible-Asset has ranged from 7.10 to 11.02 over the past decade. While the company's 10-year median is 8.61 vs. the industry median of 3.88, 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 Return-on-Tangible-Asset for a Retail - Defensive company?
The median Return-on-Tangible-Asset among Retail - Defensive companies is 3.88, based on 312 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current Return-on-Tangible-Asset of 10.31% is 165.7% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Costco Wholesale and its competitors. For the Retail - Defensive industry, the median Return-on-Tangible-Asset is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current Return-on-Tangible-Asset is 10.31%, which is 20% above median its own 10-year median of 8.61. 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 $1,018.57, compared to a current price of $950.25 — trading 6.7% below its estimated fair value. The current Return-on-Tangible-Asset is 10.31%, which is 20% above median its 10-year median of 8.61 and 165.7% above the Retail - Defensive industry median of 3.88. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Costco Wholesale (COST), the current Return-on-Tangible-Asset is 10.31% 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 $950.25 is trading 6.7% below its estimated GF Value™ of $1,018.57.
GuruFocus considers Costco Wholesale to be Fairly Valued.
Key valuation signals for COST:
Return-on-Tangible-Asset: 10.31% (20% above median its 10-year median of 8.61)
GF Value™: $1,018.57 vs. price of $950.25 (6.7% below fair value)
Industry Position: 165.7% above the Retail - Defensive median (#39 of 312)
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
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