Is Costco Wholesale Corporation (COST) Undervalued?
Based on the current stock price of $873.35 and a P/E ratio of 46.73,Costco Wholesale Corporation has a PEG ratio of 4.18.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 4.18, COST appears to be potentially overvalued relative to its growth rate of 11.18%.
Based on a PEG ratio of 3.97 (adjusted for dividends).
Compare COST vs Competitors
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How we analyzed COST
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 46.73and dividing it by the annual growth rate of 11.18%.
PEG = 46.73 (P/E) ÷ 11.18 (Growth) = 4.18
Frequently Asked Questions about COST
What is the current PEG Ratio for Costco Wholesale Corporation (COST)?+
The current PEG Ratio for Costco Wholesale Corporation is 4.18. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is COST stock undervalued right now?+
Based on the PEG ratio of 4.18, Costco Wholesale Corporation appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for COST?+
The PEGY ratio for Costco Wholesale Corporation is 3.97. This metric accounts for dividend yield (0.60%), providing a more complete valuation picture.