COSTNEUTRAL

COST P/E Ratio Analysis

47.0x

Higher than 100% of CONSUMER DEFENSIVE sector peers

Updated 121h ago·SEC filings & market data

Key Takeaway

The current Price-to-Earnings (P/E) ratio of 47.0x means investors pay $47 for every $1 of the company's annual earnings, indicating a premium valuation.

Sector Performance

100th percentile

COST

47.0x

Sector Median

34.0x

Sector Avg

34.0x

Prior Period

50.1x(Jun 2026)

↑ Improving

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Deep Analysis

The current Price-to-Earnings (P/E) ratio of 47.0x means investors pay $47 for every $1 of the company's annual earnings, indicating a premium valuation.

Among CONSUMER DEFENSIVE peers, COST trades at the 100th percentile, far above the sector median of 34.0x. The year-over-year change is not available, but the ratio declined 6.3% quarter-over-quarter, from 50.1x to 47.0x. A very elevated P/E combined with a recent downward trend suggests that while the stock has historically commanded high multiples, the compression may reduce some valuation risk if earnings grow into the multiple. However, the absolute level remains extreme relative to peers, making the stock vulnerable to any earnings disappointment. This premium valuation contradicts a fully bullish stance but aligns with the NEUTRAL verdict, as the high multiple is partly offset by the recent decline and defensive sector stability.

Frequently Asked Questions

What does the P/E Ratio tell investors about COST?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does COST's P/E Ratio compare to its sector?

COST's P/E Ratio of 47.0x compares to a CONSUMER DEFENSIVE sector median of 34.0x, placing it in the 100th percentile.

Who are COST's closest peers by P/E Ratio?

The closest CONSUMER DEFENSIVE peers by P/E Ratio include: PG (21.0x).

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Learn More About P/E Ratio

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.