Intrinsic Valuation of: COST
Free Cash Flow Average and Growth over past 5Y Key Statistics
Year FCF FCF (FCF/Revenue)
2020 - - EPS (FY) 19 Market Cap $465B
2021 - - (-) P/E Ratio 55 Total Asset $77B
2022 $4B - (-) Net Income $8B Total Debt $6B
2023 $7B 92.7% (80.5%) EBITDA $13B Total Liab $48B
2024 $7B -1.7% (-6.4%) Opr Margin 3.77 Debt/Equity 0.20
2025 $8B 18.2% (9.3%) PreTax Margin 3.72 BV/Share 66
5Y Average FCF $6B 15.0% (27.8%)
Overall Market Assumptions:
Assumptions: P/E for No-Growth Company: 7.0
Perpetual Growth Rate (g): 2.48% Historical US Bond Yield: 4.40%
Discount Rate (WACC): 8.40% Current US Bond Yield: 3.48%
Forcasting Future Free Cash Flow for next 6Y Modified Benjamin Graham's Intrinsic Value
Year FCF Projection (15.0%)
2026 $8B MBG Intrinsic Value $172
2027 $9B
2028 $10B
2029 $11B
2030 $12B
2031 $12B
Terminal Value $209B Net Worth/Share $66
DCF Valuation DCF Valuation "What If" Scenario Table
Enterprise Value $176B Growth Rate
(+) Cash & Cash Equivalents $14B $417 1.5% 2.0% 2.5% 3.0% 3.5%
(-) Total Debt $6B WACC 6.5% 510 554 609 679 772
Equity Value $185B 7.5% 428 457 491 533 586
Shares Outstanding 443,652,540 8.4% 370 390 413 441 474
9.4% 325 340 356 376 398
DCF Intrinsic Value $417 10.4% 291 302 314 328 344
Analyzed by QuantJuice (2025)