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Is this Large Market Cap Stock target price reasonable for Costco Wholesale Corporation (NASDAQ:COST)?

The company in question is, Costco Wholesale Corporation (NASDAQ:COST) currently with a stock price of 167.57 (0.31% today). The market cap for Costco Wholesale Corporation is 73411.79, and is in the sector Services, and Discount, Variety Stores industry. The target price for Costco Wholesale Corporation is 169.05. Currently Costco Wholesale Corporation is trading with a P/E of 31.57, and a forward P/E of 27.9. Average volume for Costco Wholesale Corporation is 2709.81 and so far today it is 492571.

Performance in the last year for Costco Wholesale Corporation has been 15.38%. For EPS growth, Costco Wholesale Corporation has seen a growth of 15.40%, and is looking to grow in the next year to 12.86%. More long term stats show that EPS growth has been 12.90% over the last five years and could be 9.13% for the next five years. Costco Wholesale Corporation has seen sales growth quarter over quarter at 2.60%, with EPS growth quarter over quarter at 6.10%. The 20-day simple moving average is 8.24%, with the 200-day simple moving average coming to 8.80%.

Since the IPO date for Costco Wholesale Corporation on the 7/9/1986, Costco Wholesale Corporation has seen performance year to date to be 4.02%. With Costco Wholesale Corporation trading at 167.57, the dividend yield is 1.08%, and the EPS is 5.29.

So could Costco Wholesale Corporation, be undervalued? Well as said before P/E is 31.57. The PEG is 3.46, P/S is 0.62 and the P/B is at 6.37. The P/cash is 12.19, with P/free cash flow at 54.1.

Costco Wholesale Corporation ability to deal with debt shows that the current ratio is 1, and the quick ratio is 0.4. This is with long term debt/equity at 0.34, and total debt/equity at 0.44.

In terms of margins, Costco Wholesale Corporation has a gross margin of 13.20%, an operating margin of 3.10% and a profit margin of 2.00%.Payout ratio for Costco Wholesale Corporation is 31.00%. Return on assets come to 6.90% with return on investment coming to 14.50%.

Insider ownership for Costco Wholesale Corporation, is at 0.30% and institutional ownership comes to 74.00%. Outstanding shares are at 439.46. While shares float is 435. The float short is currently 2.41%, and short ratio is 3.88.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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