Costco Wholesale Corporation (doing business as Costco Wholesale and also known simply as Costco) is an American multinational corporation which operates a chain of membership-only (needing a membership to shop there) big-box retail stores. As of 2020, Costco was the fifth largest retailer in the world, and the world's largest retailer of choice and prime beef, organic foods, rotisserie chicken, and wine as of 2016.
| Revenue (TTM) | $303.15B |
| Gross Profit (TTM) | $38.70B |
| EBITDA | $14.19B |
| Operating Margin | 3.79% |
| Return on Equity | 28.40% |
| Return on Assets | 8.66% |
| Revenue/Share (TTM) | $682.85 |
| Book Value | $80.77 |
| Price-to-Book | 13.19 |
| Price-to-Sales (TTM) | 1.54 |
| EV/Revenue | 1.516 |
| EV/EBITDA | 30.49 |
| Quarterly Earnings Growth (YoY) | 15.00% |
| Quarterly Revenue Growth (YoY) | 11.10% |
| Shares Outstanding | $443.13M |
| Float | $442.23M |
| % Insiders | 0.09% |
| % Institutions | 74.23% |
Volatility is currently expanding
Costco's October sales surge 12.6%, fueled by strong comparable sales and digital growth, but its premium valuation and earnings revisions raise concerns.
Although Wall Street enjoyed more than nine months of a steady Federal Reserve, with the target rate capped at 3.75% from December 11, 2025 through September 16, 2026, that calm ended when policymakers lifted the ceiling to 4.
Six straight earnings beats have pushed Costco shares up 20% this year, yet a 49x trailing P/E leaves little room for error. One metric could decide whether the rally keeps running or finally stalls.
Charlie Munger once said Costco is the one stock where you can look past the P/E. After a month-long rally, that exception faces its toughest test yet, and the business and the price may tell two different stories.
Amazon's price-to-earnings ratio has been cut to one-third of what it was just a few years ago. Conversely, Costco's earnings-based multiple doubled over the past decade.
Costco has outrun a falling market while trading at multiples that price in perfection, and the next few weeks will reveal whether its loyal membership base and defensive reputation can justify a valuation that leaves almost no room for error.
Shares above $1,000 could make a 2027 split attractive. A stock split wouldn't change Costco's underlying valuation.
As Costco closed out October 2026 at $1,012.28 per share, shareholders may be wondering if a 2027 stock split is imminent. Costco's history of stock splits is limited, with the last one occurring in 2000.
Intel (INTC) has a great set-up for options traders, according to @ProsperTradingAcademy Scott Bauer, even as the stock slumps near 7-month lows following earnings. He tilts bearish short-term on Costco (COST) due to its recent rally and sees Okta Inc. (OKTA) as a strong name in cybersecurity.
Costco's DoorDash and Uber Eats expansion drives incremental sales, attracting younger shoppers and boosting digital growth without hurting warehouse traffic.
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