COST Research Update — September 22, 2026 (Updated)

Updated Thesis

Costco Wholesale Corporation operates a global network of membership-based warehouse clubs, selling branded and private-label merchandise across the United States, Canada, Mexico, Japan, the United Kingdom, South Korea, Taiwan, Australia, Spain, France, Iceland, and China, supplemented by pharmacies, optical centers, food courts, hearing aid centers, tire installation, 636 gas stations, and e-commerce operations. The business quality is high: membership fees anchor a recurring profit pool, TTM gross margin is 17.5%, TTM operating margin is 3.9%, TTM net margin is 3.0%, ROE is 28.0%, and revenue grew 11.1% year over year in the most recent quarter while earnings grew 14.9% in the most recent quarter. The shares trade at $896.48 against a blended fair value estimate of $1117.50, implying 24.7% upside, with a P/S of 1.31, trailing P/E of 43.14, P/FCF of 42.38, and EV/EBITDA of 32.69.

The investment grade as of this refresh is B — solid business quality. A-tier business, B-tier valuation with 24.7% upside to $1117.50 fair value.

Key Metrics at a Glance

Current price: $896.48

These figures reflect our most recent data pull and are one input into a multi-factor valuation framework.

Our 12–18 Month Outlook

Quality companies held over a multi-year horizon benefit from compounding fundamentals and the patience to ride through short-term volatility. Costco Wholesale Corporation remains in our covered universe with a solid-quality assessment. We update research when material data changes — earnings revisions, management shifts, or regime changes in valuation — not on every price fluctuation.

Long-term accumulation of quality businesses at fair or better prices is the core of the Patient Accumulator approach. Research updates like this one inform whether to add, hold, or wait for a better zone — not whether to react to short-term price moves.

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