Costco Wholesale Corporation (COST) shares in figures
Investors Observer gives Costco Wholesale Corporation (COST) a low review score of 16 based on its analysis. The proprietary rating system takes into account the underlying health of a company by analyzing its stock price, earnings and rate of growth. COST currently holds better value than 16% of the shares based on these metrics. Long-term buy and hold investors should find the most relevant valuation ranking system when making investment decisions.
COST has a 12-month price-to-earnings (PE) ratio of 23.8. The historical average of around 15 shows a low value for COST stock, as investors pay higher stock prices relative to company earnings. COST’s high PE ratio shows that the company has recently traded above its fair market value. Its 12-month earnings per share (EPS) of 18.78 does not support the current share price. However, leakage PE ratios do not take into account the company’s projected growth rate, so many newer companies have high PE ratios due to high growth potential attracting investors despite insufficient profits. COST’s 12-month PEG to Growth (PEG) ratio of 4.27 is considered a poor value as the market overstates COST relative to the expected growth in company earnings. COST’s PEG is derived from its forward price / earnings ratio divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and the stock price. Due to their integration of more fundamentals of the overall health of a company and their focus on the future rather than the past, PEG ratios are one of the most widely used valuation measures by analysts today. ‘hui.
COST ‘has a low valuation at its current market price due to an overvalued PEG ratio due to strong growth. COST’s PE and PEG are below the market average, resulting in a below-average valuation score. Click here for the full Costco Wholesale Corporation (COST) Inventory Report.