Costco Wholesale Corporation 🇺🇸
COST • Technology • USA
📊 Proprietary 12-Point Fundamental Audit
| Audit Dimension | Benchmark Criterion | COST Actual | Evaluation |
|---|---|---|---|
| 1. Economic Moat Strength | Software lock-in / high switching barrier / patent moat | Moat Score 82.5/100 | ✅ WIDE MOAT |
| 2. Pricing Power & Margins | Gross Margin > 40% sustainable | 12.9% Gross Margin | ⚠️ MODERATE |
| 3. Revenue Acceleration | YoY Top-Line Growth > 15% | +21.5% YoY | ✅ PASSED |
| 4. Peter Lynch PEG Ratio | PEG < 1.2x (Growth at a Reasonable Price) | 2.13x PEG Ratio | ⚠️ ELEVATED |
| 5. Fortress Balance Sheet | Debt / EBITDA < 2.5x | 0.8x Net Leverage | ✅ PASSED |
| 6. Free Cash Flow Generation | Positive and compounding FCF | $7.0B Free Cash Flow | ✅ PASSED |
| 7. Multiple vs Sector Median | Forward P/E reasonable vs earnings growth | Forward P/E: 45.9x | ✅ ATTRACTIVE MULTIPLE |
| 8. Management & Insider Ownership | Insider Ownership > 3% | 8.5% Insider Equity | ✅ ALIGNED |
| 9. Superinvestor Whale Backing | Held by Top 25 13F Wall St Whales | Ray Dalio | ✅ 13F WHALE BACKED |
| 10. Secular Industry Tailwinds | Exposure to multi-year compound themes | Technology sector expansion | ✅ PASSED |
| 11. Trailing P/E Multiple | Historical earnings multiple sanity | Trailing P/E: 47.5x | ✅ PASSED |
| 12. Overall Moat Conviction | Composite algorithmic evaluation | Overall Score: 82.5/100 | ✅ HIGH CONVICTION |
📝 MoatPicks Investment Thesis
Competitive Moat Breakdown: Inflation-resistant consumer membership fortress with 92%+ renewal rates.
Valuation Verdict: Trading at a Forward P/E of 45.9x and PEG ratio of 2.13x, Costco Wholesale Corporation satisfies core fundamental screens for quality and durability.
🐋 Tracked Superinvestor Backing
📊 Frequently Asked Questions & Related Moat Stocks
1. What is Costco Wholesale Corporation (COST)'s Economic Moat Score in 2026?
In 2026, Costco Wholesale Corporation (COST) holds a proprietary MoatPicks Economic Moat Score™ of 82.5/100 (Wide Economic Moat). This 12-point fundamental audit evaluates COST's 12.9% gross margin, $7.0B free cash flow generation, +21.5% YoY revenue growth, and 0.8x Debt/EBITDA ratio. You can benchmark any stock's competitive durability interactively with our Economic Moat Score™ Checker.
2. Is COST stock undervalued right now based on P/E and PEG ratio?
Costco Wholesale Corporation (COST) commands a quality valuation premium at a Forward P/E of 45.9x and PEG ratio of 2.13x, reflecting its 12.9% gross margin and fortress cash flows. At a share price of $945.47, investors can stress-test COST's fair value using the MoatPicks Economic Moat Score™ Checker and FIRE compounding calculators. Model how compounding COST fits your long-term retirement target in our FIRE Financial Independence Calculator.
3. Which superinvestors and 13F hedge funds own COST stock?
According to latest SEC 13F institutional filings tracked by MoatPicks, superinvestors holding or trading Costco Wholesale Corporation (COST) include Ray Dalio. Institutional conviction is reinforced by COST's $7.0B in free cash flow and 0.8x net leverage.