Costco WholesaleCOST +0.46%96 ROC (Joel Greenblatt) % is 32.35% as of May. 2026, which is 26% above its 10-year median of 25.60. GuruFocus rates COST with a GF Score™ of 96/100 and a GF Value™ of $1,017.35 (Fairly Valued). The stock has 1 warning sign investors should review. Among 308 Retail - Defensive companies, Costco Wholesale ranks better than 85.71% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Costco Wholesale's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 was 32.35%.
The historical rank and industry rank for Costco Wholesale's ROC (Joel Greenblatt) % or its related term are showing as below:
COST'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 23.13 Med: 25.6 Max: 33.66
Current: 33.66
During the past 13 years, Costco Wholesale's highest ROC (Joel Greenblatt) % was 33.66%. The lowest was 23.13%. And the median was 25.60%.
COST's ROC (Joel Greenblatt) % is ranked better than 85.71% of 308
companies
in the Retail - Defensive industry
Industry Median: 13.375
vs COST: 33.66
Costco Wholesale's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 6.30% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Costco Wholesale ROC (Joel Greenblatt) % Related Terms
Costco Wholesale ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Costco Wholesale's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Discount Stores subindustry, Costco Wholesale's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (May. 2026) EBIT data.
* 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 ROC (Joel Greenblatt) % of 32.35% mean?
Costco Wholesale (COST) has a ROC (Joel Greenblatt) % of 32.35% as of May. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Costco Wholesale and its competitors. This is 26% above median its historical median of 25.60. Over the past decade, Costco Wholesale's ROC (Joel Greenblatt) % has ranged from 23.13 to 33.66. According to the industry distribution chart, Costco Wholesale ranks #44 out of 308 companies in the Retail - Defensive industry, placing it in the top 14.3%.
Is Costco Wholesale's ROC (Joel Greenblatt) % too high?
Costco Wholesale's current ROC (Joel Greenblatt) % of 32.35% is 26% above median its 10-year median of 25.60. Over the past 10 years, this metric has ranged from a low of 23.13 to a high of 33.66. The Retail - Defensive industry median ROC (Joel Greenblatt) % is 13.38. Costco Wholesale's value of 32.35% is 141.9% above this industry median. Based on the distribution chart, Costco Wholesale ranks #44 out of 308 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 ROC (Joel Greenblatt) % compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #44 out of 308 companies for ROC (Joel Greenblatt) %. This places Costco Wholesale in the top 14% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 13.38. Costco Wholesale's value of 32.35% is 141.9% above this benchmark. Historically, Costco Wholesale's own ROC (Joel Greenblatt) % has ranged from 23.13 to 33.66 over the past decade. While the company's 10-year median is 25.60 vs. the industry median of 13.38, 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 ROC (Joel Greenblatt) % for a Retail - Defensive company?
The median ROC (Joel Greenblatt) % among Retail - Defensive companies is 13.38, based on 308 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current ROC (Joel Greenblatt) % of 32.35% is 141.9% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Costco Wholesale and its competitors. For the Retail - Defensive industry, the median ROC (Joel Greenblatt) % is 13.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current ROC (Joel Greenblatt) % is 32.35%, which is 26% above median its own 10-year median of 25.60. 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 $1,017.35, compared to a current price of $928.94 — trading 8.7% below its estimated fair value. The current ROC (Joel Greenblatt) % is 32.35%, which is 26% above median its 10-year median of 25.60 and 141.9% above the Retail - Defensive industry median of 13.38. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Costco Wholesale (COST), the current ROC (Joel Greenblatt) % is 32.35% 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 $928.94 is trading 8.7% below its estimated GF Value™ of $1,017.35.
GuruFocus considers Costco Wholesale to be Fairly Valued.
Key valuation signals for COST:
ROC (Joel Greenblatt) %: 32.35% (26% above median its 10-year median of 25.60)
GF Value™: $1,017.35 vs. price of $928.94 (8.7% below fair value)
Industry Position: 141.9% above the Retail - Defensive median (#44 of 308)
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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