COSTNEUTRAL

EV/EBITDA

30.2x

Updated 534h ago

Sector Performance

88th percentile

COST

30.2x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

The EV/EBITDA ratio compares a company's enterprise value (market cap plus debt minus cash) to its earnings before interest, taxes, depreciation, and amortization — a measure of operating cash flow.

At 30.2x, COST trades well above the sector median of 14.3x, placing it in the 91st percentile among peers, meaning it is far more expensive than most similar companies. No trend data is available — both the year-over-year and quarter-over-quarter changes are marked as N/A, and there are no historical values for the last eight quarters. A very high multiple with no observable trend suggests the stock already reflects optimistic expectations, leaving limited room for upside if growth slows. This elevated valuation implies higher downside risk relative to sector peers, as any disappointment could compress the multiple. The metric supports the overall NEUTRAL verdict, as the premium price demands flawless execution to justify current levels.

Frequently Asked Questions

What does the EV/EBITDA tell investors about COST?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are COST's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.