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Costco’s Lofty Valuation Meets Fresh Scrutiny as Store-Expansion Engine Keeps Churning

A near‑50× earnings multiple is drawing scrutiny given steady, moderate growth.

Overview

  • Costco trades around 49.5–50 times earnings with a roughly $411 billion market value, a richer multiple than Amazon at about 35 and Walmart near 40, with Target around 13.
  • In fiscal Q1 2026, revenue rose 8% to more than $67 billion and net income increased 11% to $2 billion, following 10% profit growth in fiscal 2025.
  • The company reported $270 billion in fiscal 2025 net sales and operates 921 warehouses across 14 countries.
  • Membership remains a key strength, with 81.4 million paid members in Q1 and a 92.2% renewal rate in the U.S. and Canada.
  • Management targets roughly 30 net new warehouses annually, a pace that, if sustained, would add about 150 locations by early 2031.