Costco Wholesale Corporation PEG Ratio
Data as of June 01, 2026
PEG Ratio
4.86
PE Ratio (TTM)
49.76
EPS (TTM)
$19.22
Sector
Consumer Defensive
How It's Calculated
4.86 = 49.76 ÷ Growth Rate
What This Means
Costco Wholesale Corporation's PEG ratio of 4.86 is above 2, suggesting the stock may be overvalued relative to its growth rate. Investors are paying a premium for each unit of earnings growth.
About Costco Wholesale Corporation
Costco Wholesale Corporation (COST) operates in the Consumer Defensive sector, specifically in Discount Stores. With a market capitalization of about $424.27B, it ranks as a mega-cap stock — one of the largest publicly traded companies.
Shares recently traded near $956.32, within a 52-week range of $844.06 to $1096.50 (-12.8% from the high, +13.3% from the low). Beta of 0.91 is broadly in line with typical market sensitivity.
Trailing profit margin is about 3.0%, signaling modest profitability that investors should weigh against growth plans.
Understanding This Metric
The PEG ratio adjusts the PE multiple for expected earnings growth, helping compare fast-growing and slow-growing names on a more equal footing. For Costco Wholesale Corporation, a PEG near 1 is often described as fairly valued relative to growth, though the growth estimate itself can change quickly with guidance revisions.
Sector Comparison
Among Consumer Defensive names on our S&P 100 coverage, Costco Wholesale Corporation's PEG ratio of 4.86 can be compared with peers such as WMT (4.56), KO (4.05), PG (4.03). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Consumer Defensive stocks.
Key Takeaways
- COST is grouped in the Consumer Defensive sector for peer comparisons.
- Recent beta of 0.91 suggests market-like price sensitivity.
- Trailing profit margin of 3.0% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for COST.
Other COST Metrics
Frequently Asked Questions
What is COST's PEG ratio?
PEG adjusts PE for expected earnings growth: PEG ≈ PE ÷ earnings growth rate. Costco Wholesale Corporation's PEG of 4.86 is a shorthand for growth-at-a-reasonable-price comparisons.
Does PEG suggest growth at a reasonable price?
PEG above 1.5 (4.86) may mean the market prices in high growth — or that growth estimates lag reality.
What are limitations of PEG for COST?
PEG depends on a single growth estimate, ignores balance sheet risk, and can mislead when earnings are volatile. Use it with PE, margins, and Consumer Defensive peers — not as a standalone verdict.
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