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Costco Wholesale (XSGO:COST) Cyclically Adjusted PB Ratio : 19.66 (As of May. 17, 2024)


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What is Costco Wholesale Cyclically Adjusted PB Ratio?

As of today (2024-05-17), Costco Wholesale's current share price is $721.30. Costco Wholesale's Cyclically Adjusted Book per Share for the quarter that ended in Feb. 2024 was $36.68. Costco Wholesale's Cyclically Adjusted PB Ratio for today is 19.66.

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

XSGO:COST' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 4.5   Med: 7.98   Max: 19.58
Current: 19.57

During the past years, Costco Wholesale's highest Cyclically Adjusted PB Ratio was 19.58. The lowest was 4.50. And the median was 7.98.

XSGO:COST's Cyclically Adjusted PB Ratio is ranked worse than
96.79% of 218 companies
in the Retail - Defensive industry
Industry Median: 1.615 vs XSGO:COST: 19.57

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 $46.809. 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 $36.68 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 18.50

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
=721.30/36.68
=19.66

* 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)
=46.809/130.9299*130.9299
=46.809

Current CPI (Feb. 2024) = 130.9299.

Costco Wholesale Quarterly Data

Book Value per Share CPI Adj_Book
201405 26.966 100.373 35.176
201408 28.109 100.352 36.674
201411 28.057 99.635 36.870
201502 23.197 99.032 30.669
201505 24.089 100.333 31.435
201508 24.242 100.548 31.567
201511 24.667 100.135 32.253
201602 25.055 100.040 32.791
201605 26.263 101.355 33.926
201608 27.608 101.617 35.572
201611 27.258 101.829 35.048
201702 28.341 102.779 36.104
201705 22.568 103.256 28.617
201708 24.652 103.587 31.159
201711 25.224 104.072 31.733
201802 26.785 105.052 33.383
201805 27.686 106.148 34.150
201808 29.209 106.383 35.949
201811 29.888 106.338 36.800
201902 31.504 106.649 38.677
201905 32.939 108.048 39.915
201908 34.673 108.245 41.940
201911 35.903 108.519 43.318
202002 37.624 109.139 45.136
202005 38.055 108.175 46.060
202008 41.436 109.662 49.472
202011 33.547 109.793 40.005
202102 35.369 110.968 41.731
202105 37.284 113.576 42.981
202108 39.753 115.421 45.095
202111 41.636 117.269 46.486
202202 43.811 119.703 47.920
202205 45.078 123.323 47.859
202208 46.631 124.958 48.860
202211 48.375 125.607 50.425
202302 51.398 126.928 53.019
202305 53.183 128.314 54.267
202308 56.591 129.538 57.199
202311 58.918 129.548 59.546
202402 46.809 130.930 46.809

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  (XSGO: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 (XSGO: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.