Costco Wholesale (COST) ROCE %: 27.25% (As of May. 2026)


COST Costco Wholesale Corp COST
97 GF Score
Price $964.10
GF Value $1,014.93
Valuation Fairly Valued
! 1 Warning Sign
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What is Costco Wholesale ROCE %?

Costco Wholesale COST +0.67% 97 ROCE % is 27.25% as of May. 2026. GuruFocus rates COST with a GF Score™ of 97/100 and a GF Value™ of $1,014.93 (Fairly Valued). The stock has 1 warning sign investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Costco Wholesale's annualized ROCE % for the quarter that ended in May. 2026 was 27.25%.

Costco Wholesale  (NAS:COST) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Costco Wholesale ROCE % Related Terms

Costco Wholesale ROCE % Historical Data

* Premium members only.

The historical data trend for Costco Wholesale's ROCE % 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 ROCE % Chart

Costco Wholesale Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.63 25.80 25.59 28.40 29.51

Costco Wholesale Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.22 36.52 25.86 26.27 27.25
COST
97GF Score
Costco Wholesale Corp COST
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Costco Wholesale ROCE % Calculation

Costco Wholesale's annualized ROCE % for the fiscal year that ended in Aug. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Aug. 2025 )  (A: Aug. 2024 )(A: Aug. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Aug. 2025 )  (A: Aug. 2024 )(A: Aug. 2025 )
=10972/( ( (69831 - 35464) + (77099 - 37108) )/ 2 )
=10972/( (34367+39991)/ 2 )
=10972/37179
=29.51 %

Costco Wholesale's ROCE % of for the quarter that ended in May. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: May. 2026 )  (Q: Feb. 2026 )(Q: May. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: May. 2026 )  (Q: Feb. 2026 )(Q: May. 2026 )
=11880/( ( (83639 - 40763) + (86430 - 42125) )/ 2 )
=11880/( ( 42876 + 44305 )/ 2 )
=11880/43590.5
=27.25 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 27.25% mean?
Costco Wholesale (COST) has a ROCE % of 27.25% as of May. 2026.
Is Costco Wholesale's ROCE % too high?
Costco Wholesale's current ROCE % is 27.25%. The Retail - Defensive industry median ROCE % is 8.98. Costco Wholesale's value of 27.25% is 203.5% above this industry median. 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 ROCE % compare to TGT and DG?
Costco Wholesale's ROCE % of 27.25% can be compared against companies in the Retail - Defensive industry. The industry median ROCE % is 8.98. Costco Wholesale's value of 27.25% is 203.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Retail - Defensive company?
The median ROCE % among Retail - Defensive companies is 8.98, based on 307 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current ROCE % of 27.25% is 203.5% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Retail - Defensive industry, the median ROCE % is 8.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current ROCE % is 27.25%. 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 $1,014.93, compared to a current price of $964.10 — trading 5% below its estimated fair value. The current ROCE % is 27.25% and 203.5% above the Retail - Defensive industry median of 8.98. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Costco Wholesale (COST), the current ROCE % is 27.25% 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 $964.10 is trading 5% below its estimated GF Value™ of $1,014.93. GuruFocus considers Costco Wholesale to be Fairly Valued.

Key valuation signals for COST:

  • ROCE %: 27.25%
  • GF Value™: $1,014.93 vs. price of $964.10 (5% below fair value)
  • GF Score™: 97/100 with 1 warning sign
  • Industry Position: 203.5% above the Retail - Defensive median

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.

Costco Wholesale Business Description

Address 999 Lake Drive, Issaquah, WA, USA, 98027
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

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$964.10
Price
$1,014.93
GF Value