Costco Wholesale Price To Book vs. Book Value Per Share
| COST Stock | 43.53 0.85 1.92% |
For Costco Wholesale profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Costco Wholesale to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Costco Wholesale Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Costco Wholesale's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Costco Wholesale Corp over time as well as its relative position and ranking within its peers.
Costco |
Costco Wholesale Corp Book Value Per Share vs. Price To Book Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Costco Wholesale's current stock value. Our valuation model uses many indicators to compare Costco Wholesale value to that of its competitors to determine the firm's financial worth. Costco Wholesale Corp is number one stock in price to book category among its peers. It also is number one stock in book value per share category among its peers creating about 3.22 of Book Value Per Share per Price To Book. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Costco Wholesale's earnings, one of the primary drivers of an investment's value.Costco Book Value Per Share vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Costco Wholesale |
| = | 16.53 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
Costco Wholesale |
| = | 53.31 X |
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.
Costco Book Value Per Share Comparison
Costco Wholesale is currently under evaluation in book value per share category among its peers.
Costco Wholesale Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Costco Wholesale, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Costco Wholesale will eventually generate negative long term returns. The profitability progress is the general direction of Costco Wholesale's change in net profit over the period of time. It can combine multiple indicators of Costco Wholesale, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Net Interest Income | 428.9 M | 450.4 M | |
| Interest Income | 613 M | 643.6 M | |
| Operating Income | 9.3 B | 6.8 B | |
| Net Income From Continuing Ops | 7.2 B | 5.2 B | |
| Income Before Tax | 9.8 B | 6.9 B | |
| Total Other Income Expense Net | 33.4 M | 31.7 M | |
| Net Income Applicable To Common Shares | 7.2 B | 5.1 B | |
| Net Income | 7.2 B | 5.1 B | |
| Income Tax Expense | 2.5 B | 1.7 B | |
| Change To Netincome | 1.9 B | 1.2 B |
Costco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Costco Wholesale. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Costco Wholesale position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Costco Wholesale's important profitability drivers and their relationship over time.
Use Costco Wholesale in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Costco Wholesale position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Costco Wholesale will appreciate offsetting losses from the drop in the long position's value.Costco Wholesale Pair Trading
Costco Wholesale Corp Pair Trading Analysis
The ability to find closely correlated positions to Costco Wholesale could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Costco Wholesale when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Costco Wholesale - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Costco Wholesale Corp to buy it.
The correlation of Costco Wholesale is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Costco Wholesale moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Costco Wholesale Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Costco Wholesale can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Costco Wholesale position
In addition to having Costco Wholesale in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Shipping Containers Thematic Idea Now
Shipping Containers
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Shipping Containers theme has 16 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Shipping Containers Theme or any other thematic opportunities.
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To fully project Costco Wholesale's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Costco Wholesale Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Costco Wholesale's income statement, its balance sheet, and the statement of cash flows.