Costco Fair Value
CO
The fair market value of COST stock is 652.26 USD. Relative to the market price of 931.34 USD Costco is overvalued by 30%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Costco Valuation
Current COST share ticker price is 931.34 USD.
The fair value level of 652.26 USD can be considered as an effective entry point for long-term investors to start investing in COST stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 30% higher its fair value
Current price is 35% higher its minimum value
Current price is 17% higher its maximum value
Market price:
COST stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
Costco Wholesale Corp Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
46.56
2
Median P/E over 5 years
39.27
3
Minimum P/E over 5 years
36.2
4
Earning per share (last 12 months)
16.61 USD
Maximum value
1
x
4
=
773.22 USD
Fair value
2
x
4
=
652.26 USD
Minimum value
3
x
4
=
601.23 USD
Costco Wholesale Corp price metrics
25.73
Annual return (geometric mean)
24.04
Risk (standard deviation) of returns
β
0.81
Beta (volatility compared to market)