Costco WholesaleCOST +0.67%97 ROE % is 26.73% as of May. 2026, which is 1% below its 10-year median of 27.07. 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. Among 306 Retail - Defensive companies, Costco Wholesale ranks better than 91.5% on this metric.
The historical rank and industry rank for Costco Wholesale's ROE % or its related term are showing as below:
COST'
s ROE % Range Over the Past 10 Years
Min: 20.71 Med: 27.07 Max: 30.69
Current: 29.04
During the past 13 years, Costco Wholesale's highest ROE % was 30.69%. The lowest was 20.71%. And the median was 27.07%.
COST's ROE % is ranked better than 91.5% of 306
companies
in the Retail - Defensive industry
Industry Median: 8.53
vs COST: 29.04
Costco Wholesale (NAS:COST) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (May. 2026) net income data. The Revenue data used here is four times the quarterly (May. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Costco Wholesale ROE % Related Terms
Costco Wholesale ROE % Historical Data
* Premium members only.
The historical data trend for Costco Wholesale's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's ROE % distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Costco Wholesale (COST) has a ROE % of 26.73% as of May. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Costco Wholesale and its competitors. This is near median its historical median of 27.07. Over the past decade, Costco Wholesale's ROE % has ranged from 20.71 to 30.69. According to the industry distribution chart, Costco Wholesale ranks #26 out of 306 companies in the Retail - Defensive industry, placing it in the top 8.5%.
Is Costco Wholesale's ROE % too high?
Costco Wholesale's current ROE % of 26.73% is near median its 10-year median of 27.07. Over the past 10 years, this metric has ranged from a low of 20.71 to a high of 30.69. The Retail - Defensive industry median ROE % is 8.53. Costco Wholesale's value of 26.73% is 213.4% above this industry median. Based on the distribution chart, Costco Wholesale ranks #26 out of 306 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 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Costco Wholesale's ROE % compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #26 out of 306 companies for ROE %. This places Costco Wholesale in the top 9% of its industry — outperforming the majority of peers. The industry median ROE % is 8.53. Costco Wholesale's value of 26.73% is 213.4% above this benchmark. Historically, Costco Wholesale's own ROE % has ranged from 20.71 to 30.69 over the past decade. While the company's 10-year median is 27.07 vs. the industry median of 8.53, 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 ROE % for a Retail - Defensive company?
The median ROE % among Retail - Defensive companies is 8.53, based on 306 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current ROE % of 26.73% is 213.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Costco Wholesale and its competitors. For the Retail - Defensive industry, the median ROE % is 8.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current ROE % is 26.73%, which is near median its own 10-year median of 27.07. 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 ROE % is 26.73%, which is near median its 10-year median of 27.07 and 213.4% above the Retail - Defensive industry median of 8.53. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Costco Wholesale (COST), the current ROE % is 26.73% 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:
ROE %: 26.73% (near median its 10-year median of 27.07)
GF Value™: $1,014.93 vs. price of $964.10 (5% below fair value)
Industry Position: 213.4% above the Retail - Defensive median (#26 of 306)
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
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