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COST · Discounted Cash Flow Valuation

Costco DCF Valuation: Intrinsic Value Calculator

Costco Wholesale Corporation (COST) DCF model with live financials. See the pre-loaded intrinsic value estimate below, then adjust growth and discount rate assumptions in the full calculator.

DCF Snapshot

Current Price$998.47
Market Cap$443.2B
TTM Free Cash Flow$6.7B
Intrinsic Value / Share$360.26
Upside / Downside-63.9%

Assumptions

FCF Growth Rate8%
Discount Rate (WACC)9%
Terminal Growth2.5%
Projection Period10 years

These are conservative starting assumptions. Adjust them in the full calculator to test your own thesis.

What Drives Costco's DCF

Costco's DCF centers on its membership model — 135M+ cardholders paying annual fees that generate nearly pure profit, funding the low-markup retail strategy that drives customer loyalty. Membership renewal rates exceed 92% globally. Key assumptions: mid-to-high-single-digit revenue growth from new warehouse openings (~25/year), e-commerce expansion, and periodic membership fee increases, with the membership flywheel providing margin stability even in competitive retail environments.