COST

Potentially Overvalued

Costco Wholesale Corporation — PEG Ratio Analysis

3.30

PEG Ratio

3.30

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$986.68

TTM EPS

$19.88

P/E Ratio

49.63

Growth Rate

15.0%

5-Year EPS CAGR

Sector

Consumer Defensive

Discount Stores

Calculated

6/17/2026

12:44:26 PM

Peer Comparison

Sample Size

6 peers

Industry Median PEG

4.32

25th Percentile

2.78

75th Percentile

6.72

COST PEG (3.30) vs Industry Median (4.32): 24% discount

Symbol	Company	PEG	P/E	Growth	vs COST
V	Visa Inc.	1.83	29.0	15.8%	-44%
BJ	BJ's Wholesale Club Holdings, Inc.	2.78	20.5	7.4%	-16%
WMT	Walmart Inc.	3.69	42.5	11.5%	+12%
SBUX	Starbucks Corporation	4.94	77.0	15.6%	+50%
HD	The Home Depot, Inc.	6.72	23.9	3.6%	+104%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.