COSTNEUTRAL

COST PEG Ratio Analysis

3.09x

Higher than 0% of CONSUMER DEFENSIVE sector peers

Updated 609h ago·SEC filings & market data

Key Takeaway

The PEG ratio (price/earnings-to-growth) measures a stock's price relative to its earnings growth, where lower values suggest better value for expected growth.

Sector Performance

0th percentile

COST

3.09x

Sector Median

4.08x

Sector Avg

4.08x

Prior Period

3.30x(Jun 2026)

↑ Improving
📊

Deep Analysis

The PEG ratio (price/earnings-to-growth) measures a stock's price relative to its earnings growth, where lower values suggest better value for expected growth.

At 3.09x, COST trades at a premium to its growth rate, meaning investors pay a high price for each unit of projected earnings expansion. This is below the sector median of 4.08x, placing it at the 0th percentile among consumer defensive peers, so the stock is cheaper on this basis than most of its sector. The trend is N/A, with no year-over-year change or quarter-over-quarter change available, so the current reading offers no information about momentum or deterioration. A high absolute PEG with an absent trend points to elevated valuation risk if growth disappoints, but the relative discount to peers tempers that concern. This metric broadly supports the NEUTRAL verdict: the PEG does not signal a clear bargain nor an extreme overvaluation within its sector.

Frequently Asked Questions

What does the PEG Ratio tell investors about COST?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

How does COST's PEG Ratio compare to its sector?

COST's PEG Ratio of 3.09x compares to a CONSUMER DEFENSIVE sector median of 4.08x, placing it in the 0th percentile.

Who are COST's closest peers by PEG Ratio?

The closest CONSUMER DEFENSIVE peers by PEG Ratio include: PG (5.07x).

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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Closest Sector Peers

COST

3.09x

Sector Median

4.08x

Sector Avg

4.08x

How COST's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.