Costco WholesaleCOST +0.34%97 Altman Z2-Score is 2.82 as of Jun. 24, 2026, which is 38% above its 10-year median of 2.05. 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 51.31% on this metric.
Altman Z2-Score, also known as Z"-Score, is used to predict the likelihood that a non-manufacturing company (excluding property/financial company) will face bankruptcy within a two-year period.
Good Sign:
Costco Wholesale has a Altman Z2-Score of 2.82, indicating it is in Safe Zones. This implies the Altman Z2-Score is strong.
The zones of discrimination were as such:
When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.
The historical rank and industry rank for Costco Wholesale's Altman Z2-Score or its related term are showing as below:
COST'
s Altman Z2-Score Range Over the Past 10 Years
Min: 0.89 Med: 2.05 Max: 2.82
Current: 2.82
During the past 13 years, Costco Wholesale's highest Altman Z2-Score was 2.82. The lowest was 0.89. And the median was 2.05.
The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
Altman Z2-Score does not apply to financial companies.
Costco Wholesale Altman Z2-Score Related Terms
Costco Wholesale Altman Z2-Score Historical Data
* Premium members only.
The historical data trend for Costco Wholesale's Altman Z2-Score 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 Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score 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 Altman Z2-Score vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Altman Z2-Score distribution charts can be found below:
* The bar in red indicates where Costco Wholesale's Altman Z2-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.
Costco Wholesale's Altman Z2-Score for today is calculated with this formula:
Z
=
6.56
*
X1
+
3.26
*
X2
+
6.72
*
X3
+
1.05
*
X4_2
=
6.56
*
0.0353
+
3.26
*
0.3064
+
6.72
*
0.1377
+
1.05
*
0.6332
=
2.82
* 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. GuruFocus does not calculate Altman Z2-Score when X4_2 value is 0.
Costco Wholesale (COST) has a Altman Z2-Score of 2.82 as of Jun. 24, 2026. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Costco Wholesale and its competitors. This is 38% above median its historical median of 2.05. Over the past decade, Costco Wholesale's Altman Z2-Score has ranged from 0.89 to 2.82. According to the industry distribution chart, Costco Wholesale ranks #149 out of 306 companies in the Retail - Defensive industry, placing it in the top 48.7%.
Is Costco Wholesale's Altman Z2-Score too high?
Costco Wholesale's current Altman Z2-Score of 2.82 is 38% above median its 10-year median of 2.05. Over the past 10 years, this metric has ranged from a low of 0.89 to a high of 2.82. The Retail - Defensive industry median Altman Z2-Score is 2.69. Costco Wholesale's value of 2.82 is 4.8% above this industry median. Based on the distribution chart, Costco Wholesale ranks #149 out of 306 companies in the Retail - Defensive industry, which is above the industry midpoint. 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 Altman Z2-Score compare to TGT and DG?
According to the Retail - Defensive industry distribution chart, Costco Wholesale ranks #149 out of 306 companies for Altman Z2-Score. This puts Costco Wholesale in the upper half of its industry. The industry median Altman Z2-Score is 2.69. Costco Wholesale's value of 2.82 is 4.8% above this benchmark. Historically, Costco Wholesale's own Altman Z2-Score has ranged from 0.89 to 2.82 over the past decade. While the company's 10-year median is 2.05 vs. the industry median of 2.69, 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 Altman Z2-Score for a Retail - Defensive company?
The median Altman Z2-Score among Retail - Defensive companies is 2.69, based on 306 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z2-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z2-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Costco Wholesale's current Altman Z2-Score of 2.82 is 4.8% 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 Altman Z2-Score mean?
A high Altman Z2-Score can signal that a stock is expensive relative to its fundamentals. Z2-Score is the Z-Score for non-manufacturing companies excluding property/financial companies, which measures a company's bankruptcy risk. View historical data on Costco Wholesale and its competitors. For the Retail - Defensive industry, the median Altman Z2-Score is 2.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Costco Wholesale's current Altman Z2-Score is 2.82, which is 38% above median its own 10-year median of 2.05. 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 $961.09 — trading 5.3% below its estimated fair value. The current Altman Z2-Score is 2.82, which is 38% above median its 10-year median of 2.05 and 4.8% above the Retail - Defensive industry median of 2.69. 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 Altman Z2-Score calculated?
Altman Z2-Score is calculated from a company's financial statements. For Costco Wholesale (COST), the current Altman Z2-Score is 2.82 as of Jun. 24, 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 $961.09 is trading 5.3% below its estimated GF Value™ of $1,014.93.
GuruFocus considers Costco Wholesale to be Fairly Valued.
Key valuation signals for COST:
Altman Z2-Score: 2.82 (38% above median its 10-year median of 2.05)
GF Value™: $1,014.93 vs. price of $961.09 (5.3% below fair value)
Industry Position: 4.8% above the Retail - Defensive median (#149 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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