COST Costco
Intrinsic value$328.04
Price (at call)$898.48
Margin of safety
-63.5%
vs market (rating basis)
-22.0%
Model unavailable; showing baseline valuation.
⚠ LLM error: empty response; using baseline
The story
Value drivers
| Revenue growth (Y1) | 6.6% |
| Terminal growth | 3.5% |
| Forecast horizon | 10y |
| Target operating margin | 4.1% |
| Years to target margin | 5 |
| Sales-to-capital | 5.00 |
| Beta | 0.85 |
| Failure probability | 0.0% |
| Cost of capital (WACC) | 8.8% |
| Terminal WACC | 9.4% |
Valuation bridge
| PV of explicit FCFF | 51.49B |
| PV of terminal value | 85.54B |
| Equity value | 145.48B |
| ÷ shares → per share | $328.04 |
News
neutral +0.10 · 8 articles
- August housing data & Costco earnings: What to watch this week
- What Does Costco Wholesale (COST) Nationwide Same Day Delivery Mean For Members?
- Should You Buy Costco Stock Before Sept. 24? History Has a Clear Answer.
- Costco Is Now on DoorDash Nationwide
- Update: Equities Rise Intraday as Chip Stocks Rally
- The TJX Companies Stock Trading at a Discount: Buy or Hold?
- Gear Up for Costco (COST) Q4 Earnings: Wall Street Estimates for Key Metrics
- Update: Oil Price Decline Lifts US Equity Futures Pre-Bell
Projected free cash flow to the firm
| Yr | Revenue | Growth | Margin | NOPAT | Reinvest | FCFF | PV |
|---|---|---|---|---|---|---|---|
| 1 | 313.08B | 6.6% | 4.1% | 9.50B | 3.90B | 5.60B | 5.15B |
| 2 | 332.78B | 6.3% | 4.1% | 10.10B | 3.94B | 6.16B | 5.21B |
| 3 | 352.56B | 5.9% | 4.1% | 10.70B | 3.96B | 6.74B | 5.24B |
| 4 | 372.28B | 5.6% | 4.1% | 11.30B | 3.94B | 7.35B | 5.25B |
| 5 | 391.80B | 5.2% | 4.1% | 11.89B | 3.90B | 7.98B | 5.25B |
| 6 | 410.98B | 4.9% | 4.1% | 12.47B | 3.84B | 8.63B | 5.22B |
| 7 | 429.67B | 4.5% | 4.1% | 13.04B | 3.74B | 9.30B | 5.17B |
| 8 | 447.71B | 4.2% | 4.1% | 13.58B | 3.61B | 9.98B | 5.10B |
| 9 | 464.94B | 3.8% | 4.1% | 14.11B | 3.45B | 10.66B | 5.01B |
| 10 | 481.21B | 3.5% | 4.1% | 14.60B | 3.25B | 11.35B | 4.90B |