Costco Wholesale operates membership warehouses, offering branded and private-label products in a range of merchandise categories. The company also operates gas stations, pharmacies, food courts, optical dispensing centers, photo processing centers, and hearing-aid centers,; and engages in the travel business. The company was founded in 1976 and is based in Issaquah, Washington.
COST Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Costco Wholesale Corp. To summarize, we found that Costco Wholesale Corp ranked in the 33th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for COST, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 33.23 -- which is good for besting 90.96% of its peer stocks (US stocks in the Consumer Defensive sector with positive cash flow).
The business' balance sheet suggests that 6% of the company's capital is sourced from debt; this is greater than merely 14.38% of the free cash flow producing stocks we're observing.
COST's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 49.32% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Costco Wholesale Corp? See LFVN, INGR, MENB, CHGG, and HLF.
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A grocer from Alaska has been dubbed the savior of his small town for not letting his neighbors go hungry amid the coronavirus pandemic. Toshua Parker, the owner of Icy Strait Wholesale in Gustavus, started loading shipping crates onto a boat to make a weekly 14-hour journey to a Costco in Juneau, 50 miles away,…
After the coronavirus pandemic stopped the ferry service that delivers inventory to his grocery store, Toshua Parker started making weekly trips to stock up at a Costco located about 50 miles away. He owns the only grocery store in Gustavus, Alaska, a 450 person town boarding Glacier Bay National Park. Parker and his employees use a converted military landing craft to make the 14-hour trip and hope that inclement weather doesn't force them to turn around. Visit Business Insider's homepage for more stories . Costco runs are stressful enough during a pandemic, but they're especially tasking when shopping to feed 450 people. But that's exactly what Toshua Parker, the owner of the only grocery store in a remote Alaskan town, has been doing since the coronavirus outbreak in the US escalated ...
Wholesale goods chain Costco will temporarily some fresh meat purchases for customers during the coronavirus outbreak, the company said Monday.On a section of the chain's website dedicated to measures taken during the COVID-19 pandemic, the company…
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