COST intrinsic value model
Costco Wholesale Corporation (COST) DCF Calculator — Intrinsic Value 2026
Costco operates membership warehouses and e-commerce with a low-margin merchandising model supported by recurring membership fees. Costco DCF assumptions should test renewal rates, warehouse growth, membership pricing, and inventory efficiency.
Bear growth
+3%
Downside case for slower free-cash-flow compounding.
Base growth
+7%
Starting point for normalized operating cash-flow growth.
Bull growth
+10%
Upside case for stronger execution and margins.
WACC / Terminal
7.5% / 2.4%
Discount rate and perpetuity growth used as default context.
How to read it
Reading the COST intrinsic value output
The base-case fair value is the model's central estimate. If it is meaningfully above the market price, the stock may offer upside; if it is below, the market may already be pricing in stronger cash-flow growth than the model assumes.
The bear and bull cards show valuation dispersion. Wide dispersion means the stock is assumption-sensitive, so investors should be careful about treating a single DCF value as precise.
The sensitivity table is the fastest way to stress-test COST. Focus on whether a reasonable WACC and growth range still supports a margin of safety.
FAQ
COST DCF calculator questions
What is the intrinsic value of COST?+
The intrinsic value of COST depends on projected free cash flow, growth, terminal growth, WACC, and shares outstanding. Use the Finlytics COST DCF calculator below to compare bear, base, bull, and custom scenarios instead of relying on a single fixed estimate.
Is COST undervalued?+
COST may look undervalued only if your DCF fair value is above the current market price by a margin of safety. Because DCF outputs are highly sensitive to assumptions, compare multiple cases and stress-test growth and discount-rate inputs before drawing a conclusion.
What assumptions matter most for COST DCF analysis?+
For Costco Wholesale Corporation, the biggest DCF drivers are free-cash-flow growth, long-term margins, reinvestment needs, terminal growth, and WACC. The default Finlytics starting point uses 7% base growth, 2.4% terminal growth, and 7.5% WACC as a research framework.
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