GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Costco Wholesale Corp (BUE:COST) » Definitions » Cyclically Adjusted PB Ratio

Costco Wholesale (BUE:COST) Cyclically Adjusted PB Ratio : 22.69 (As of May. 29, 2024)


View and export this data going back to 2003. Start your Free Trial

What is Costco Wholesale Cyclically Adjusted PB Ratio?

As of today (2024-05-29), Costco Wholesale's current share price is ARS20793.50. Costco Wholesale's Cyclically Adjusted Book per Share for the quarter that ended in Feb. 2024 was ARS916.35. Costco Wholesale's Cyclically Adjusted PB Ratio for today is 22.69.

The historical rank and industry rank for Costco Wholesale's Cyclically Adjusted PB Ratio or its related term are showing as below:

BUE:COST' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 4.5   Med: 8.04   Max: 20
Current: 20

During the past years, Costco Wholesale's highest Cyclically Adjusted PB Ratio was 20.00. The lowest was 4.50. And the median was 8.04.

BUE:COST's Cyclically Adjusted PB Ratio is ranked worse than
97.29% of 221 companies
in the Retail - Defensive industry
Industry Median: 1.54 vs BUE:COST: 20.00

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Costco Wholesale's adjusted book value per share data for the three months ended in Feb. 2024 was ARS65,532.666. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is ARS916.35 for the trailing ten years ended in Feb. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Costco Wholesale Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Costco Wholesale's Cyclically Adjusted PB Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Costco Wholesale Cyclically Adjusted PB Ratio Chart

Costco Wholesale Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.14 11.44 14.04 14.50 13.98

Costco Wholesale Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Cyclically Adjusted PB Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.95 13.35 13.98 14.84 18.29

Competitive Comparison of Costco Wholesale's Cyclically Adjusted PB Ratio

For the Discount Stores subindustry, Costco Wholesale's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Costco Wholesale's Cyclically Adjusted PB Ratio Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Costco Wholesale's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Costco Wholesale's Cyclically Adjusted PB Ratio falls into.



Costco Wholesale Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Costco Wholesale's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=20793.50/916.35
=22.69

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Costco Wholesale's Cyclically Adjusted Book per Share for the quarter that ended in Feb. 2024 is calculated as:

For example, Costco Wholesale's adjusted Book Value per Share data for the three months ended in Feb. 2024 was:

Adj_Book=Book Value per Share/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=65532.666/130.9299*130.9299
=65,532.666

Current CPI (Feb. 2024) = 130.9299.

Costco Wholesale Quarterly Data

Book Value per Share CPI Adj_Book
201405 867.112 100.373 1,131.096
201408 935.141 100.352 1,220.081
201411 955.501 99.635 1,255.625
201502 809.501 99.032 1,070.242
201505 866.447 100.333 1,130.679
201508 901.380 100.548 1,173.743
201511 953.226 100.135 1,246.380
201602 1,553.804 100.040 2,033.587
201605 1,501.414 101.355 1,939.516
201608 1,647.062 101.617 2,122.185
201611 1,643.430 101.829 2,113.084
201702 1,753.741 102.779 2,234.093
201705 1,457.014 103.256 1,847.521
201708 1,714.830 103.587 2,167.476
201711 1,757.259 104.072 2,210.749
201802 2,160.623 105.052 2,692.858
201805 2,271.677 106.148 2,802.043
201808 3,199.896 106.383 3,938.239
201811 4,290.728 106.338 5,283.034
201902 4,696.371 106.649 5,765.605
201905 5,828.946 108.048 7,063.379
201908 6,076.757 108.245 7,350.290
201911 8,553.408 108.519 10,319.842
202002 9,068.885 109.139 10,879.596
202005 10,140.779 108.175 12,273.874
202008 11,985.025 109.662 14,309.380
202011 9,703.235 109.793 11,571.220
202102 12,390.536 110.968 14,619.402
202105 13,941.120 113.576 16,071.232
202108 14,864.522 115.421 16,861.869
202111 16,624.661 117.269 18,561.269
202202 18,421.568 119.703 20,149.354
202205 20,791.848 123.323 22,074.382
202208 24,600.811 124.958 25,776.577
202211 30,422.410 125.607 31,711.532
202302 38,502.947 126.928 39,717.028
202305 47,313.846 128.314 48,278.269
202308 62,476.359 129.538 63,147.918
202311 82,484.879 129.548 83,364.688
202402 65,532.666 130.930 65,532.666

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Costco Wholesale  (BUE:COST) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Costco Wholesale Cyclically Adjusted PB Ratio Related Terms

Thank you for viewing the detailed overview of Costco Wholesale's Cyclically Adjusted PB Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Costco Wholesale (BUE:COST) Business Description

Address
999 Lake Drive, Issaquah, WA, USA, 98027
Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco's frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates nearly 600 warehouses in the United States and boasts over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the U.K.