Costco Wholesale Corp (COST) Membership Strength

For the fiscal year ended August 31 2025, reported USD figures show revenue of about USD 275 billion, EBIT of USD 10.38 billion, and net income of USD 8.10 billion. Revenue grew 8.17% year over year, indicating steady expansion on a large base.

Profitability remains modest but consistent, with a 12.88% gross margin, 3.8% operating margin, and 2.96% net margin on a trailing‑twelve‑month basis. Return on equity reached 29.6%, reflecting efficient capital use despite thin margins.

The company held USD 14.16 billion in cash against USD 11.43 billion in total debt, maintaining a net cash position. A free cash flow proxy of USD 9.90 billion suggests strong internal funding capacity for operations and reinvestment.

With a beta of 1.01 and stable revenue growth, Costco’s risk profile appears moderate, supported by recurring membership income and disciplined cost control.

At a market price of USD 994.02 per share, Costco trades well above the fair value range of the DCF model. The valuation suggests investors are paying for exceptional durability and continued execution strength.

Multiples such as 53.97× earnings and 33.25× EV/EBITDA reflect confidence that Costco’s membership model can sustain growth with minimal volatility. The premium pricing leaves limited margin for error if growth or margins soften.