Costco Wholesale Intrinsic Value Calculation – Analysts Predict Bright Future for Costco Wholesale as 34 Experts Publish Ratings in the Last 3 Months
October 12, 2024
☀️Trending News
Costco Wholesale ($NASDAQ:COST) is a well-known retail company that operates a chain of membership-only warehouse clubs. With its successful business model and strong customer loyalty, Costco has become a major player in the retail industry. In the last three months, Costco’s stock has been under close scrutiny by analysts as 34 experts have published ratings on the company. These ratings have resulted in an overall rating of COST-1.08%, indicating a positive outlook for the company’s future. One of the key factors driving the optimistic predictions for Costco is its consistent financial performance. This growth can be attributed to the company’s successful e-commerce strategy, as well as its ability to adapt to changing consumer trends. Moreover, Costco’s membership model is another significant contributor to its success.
The membership fees also provide a steady stream of revenue for the company, allowing it to invest in expansion and innovation. In addition to its financial performance, Costco has also received praise for its commitment to sustainability and ethical business practices. The company has made significant efforts to reduce its carbon footprint and promote responsible sourcing of products. Such initiatives have helped to enhance the brand’s reputation and attract more environmentally-conscious consumers. With its successful business model, loyal customer base, and commitment to sustainability, the company is poised for continued growth and success in the retail industry. Investors can confidently look towards Costco as a promising investment opportunity.
Stock Price
On Thursday, COSTCO WHOLESALE stock opened at $910.0 and closed at $893.63, marking a decrease of 1.7% from its previous closing price of 909.1. This demonstrates a strong consensus among experts that COSTCO WHOLESALE is a solid investment with potential for growth in the future. One factor contributing to this positive outlook is COSTCO WHOLESALE’s consistent financial performance. The company has reported strong earnings and revenue growth in recent years, driven by its successful membership-based business model. This model allows COSTCO WHOLESALE to offer customers discounted prices on bulk purchases, while also generating recurring revenue through membership fees.
In addition to its successful business model, COSTCO WHOLESALE is also expanding its reach globally, with plans to open new stores in China and other international markets. This presents an opportunity for significant growth as the company taps into new markets and reaches a larger customer base. With a strong financial track record and plans for expansion, it is no surprise that experts are bullish on this company. Investors may want to take note of the positive ratings and consider adding COSTCO WHOLESALE to their portfolio. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Costco Wholesale. More…
| Total Revenues | Net Income | Net Margin |
| 245.65k | 6.52k | 2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Costco Wholesale. More…
| Operations | Investing | Financing |
| 13.11k | -4.28k | -2.73k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Costco Wholesale. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 73.72k | 47.58k | 58.92 |
Key Ratios Snapshot
Some of the financial key ratios for Costco Wholesale are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.4% | 12.9% | 3.7% |
| FCF Margin | ROE | ROA |
| 3.6% | 21.9% | 7.6% |
Analysis – Costco Wholesale Intrinsic Value Calculation
After conducting a thorough analysis of COSTCO WHOLESALE‘s fundamentals, I have determined that the intrinsic value of its share is approximately $544.9. This value was calculated using our proprietary Valuation Line, which takes into account various financial metrics and market trends. Currently, COSTCO WHOLESALE’s stock is trading at $893.63, which is a significant overvaluation of 64.0%. This means that the market price of the stock is much higher than its true worth, as determined by our analysis. This overvaluation can be concerning for investors, as it suggests that the stock may be at risk of a price correction in the future. As a value-oriented investor, I believe that it is important to invest in stocks that are trading at or below their intrinsic value in order to minimize risk and maximize potential returns. In conclusion, while COSTCO WHOLESALE may be a strong and reputable company, its current stock price is significantly overvalued. Investors should carefully consider this information before making any investment decisions related to COSTCO WHOLESALE stock. More…
Peers
The retail industry is highly competitive, with companies constantly vying for market share. Costco Wholesale Corp is no exception, and it competes directly with the likes of Target Corp, Takayoshi Inc, and Walmart Inc. All four companies are leaders in the retail space, and each has its own strengths and weaknesses.
– Target Corp ($NYSE:TGT)
Target Corporation is an American retail company that operates in the discount retailing industry. The company was founded in 1902 and is headquartered in Minneapolis, Minnesota. Target Corporation operates 1,851 stores in the United States and Canada, and has a market cap of 71.52B as of 2022. The company’s return on equity is 34.09%. Target Corporation’s main competitors are Walmart and Amazon.
– Takayoshi Inc ($TSE:9259)
Takayoshi Inc is a Japanese company that manufactures and sells electronic products. It has a market cap of 8.99B as of 2022 and a ROE of -45.41%. The company’s products include computers, mobile phones, digital cameras, and other electronic devices. Takayoshi Inc has been in business for over 50 years and is a well-known brand in Japan.
– Walmart Inc ($NYSE:WMT)
With a market cap of 363.06B as of 2022, Walmart Inc. is a retail giant with a 16.44% return on equity. The company operates a chain of hypermarkets, discount department stores, and grocery stores. Walmart is the world’s largest company by revenue, with US$514.405 billion in 2020.
Summary
A total of 34 analysts have recently published their ratings on Costco Wholesale, with an overall negative sentiment as the stock currently sits at a -1.08%. This indicates that there may be some concerns about the company’s future performance. It is important for investors to carefully consider these analyst expectations before making any investment decisions. These ratings can provide insight into the potential risks and opportunities associated with investing in Costco Wholesale.
It is also important to regularly monitor any changes in analyst ratings, as they can impact the stock’s performance in the short-term and long-term. Overall, it is crucial for investors to conduct thorough research and analysis before making any investments in Costco Wholesale.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
