Stock Analysis on Net

Costco Wholesale Corp. (NASDAQ:COST)

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

Costco Wholesale Corp., FCFE calculation

US$ in millions

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12 months ended: Sep 1, 2024 Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019
Net income attributable to Costco 7,367 6,292 5,844 5,007 4,002 3,659
Net income attributable to noncontrolling interests 71 72 57 45
Net noncash charges 3,361 3,758 3,040 2,876 2,604 2,243
Changes in operating assets and liabilities 611 1,018 (1,563) 1,003 2,198 409
Net cash provided by operating activities 11,339 11,068 7,392 8,958 8,861 6,356
Additions to property and equipment (4,710) (4,323) (3,891) (3,588) (2,810) (2,998)
Repayments of short-term borrowings (920) (935) (6)
Proceeds from short-term borrowings 928 917 53 41
Repayments of long-term debt (1,077) (75) (800) (94) (3,200) (89)
Proceeds from issuance of long-term debt 498 3,992 298
Financing lease payments and other financing activities, net (137) (291) (176) (67)
Free cash flow to equity (FCFE) 5,921 6,361 2,572 5,250 6,843 3,567

Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Costco Wholesale Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Costco Wholesale Corp. FCFE increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Price to FCFE Ratio, Current

Costco Wholesale Corp., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 443,683,357
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 5,921
FCFE per share 13.35
Current share price (P) 994.50
Valuation Ratio
P/FCFE 74.52
Benchmarks
P/FCFE, Competitors1
Target Corp. 10.39
Walmart Inc. 63.14
P/FCFE, Sector
Consumer Staples Distribution & Retail 46.90
P/FCFE, Industry
Consumer Staples 36.87

Based on: 10-K (reporting date: 2024-09-01).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.


Price to FCFE Ratio, Historical

Costco Wholesale Corp., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Sep 1, 2024 Sep 3, 2023 Aug 28, 2022 Aug 29, 2021 Aug 30, 2020 Sep 1, 2019
No. shares of common stock outstanding1 443,073,537 442,740,572 442,604,145 441,823,811 441,228,027 439,656,950
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 5,921 6,361 2,572 5,250 6,843 3,567
FCFE per share3 13.36 14.37 5.81 11.88 15.51 8.11
Share price1, 4 909.10 565.52 480.32 449.34 363.02 297.60
Valuation Ratio
P/FCFE5 68.03 39.36 82.66 37.82 23.41 36.68
Benchmarks
P/FCFE, Competitors6
Target Corp. 20.84 78.41 16.84 11.15 13.90
Walmart Inc. 29.40 25.97 122.02 18.26 23.39
P/FCFE, Sector
Consumer Staples Distribution & Retail 36.91 32.19 60.47 19.63 21.92
P/FCFE, Industry
Consumer Staples 32.13 24.26 25.33 24.84 18.28

Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 5,921,000,000 ÷ 443,073,537 = 13.36

4 Closing price as at the filing date of Costco Wholesale Corp. Annual Report.

5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 909.10 ÷ 13.36 = 68.03

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Costco Wholesale Corp. P/FCFE ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.