Costco’s austere warehouses don’t offer much in terms of eye candy, but inside you’ll find an emporium capable of satisfying most of your needs. Whether it’s groceries, clothes or freakishly large teddy bears, Costco’s myriad goods and membership model have proven resilient in an era of retail titans. Here are some figures that help break down Costco’s success and ongoing market activities.
|What Costco Is Worth|
|Costco’s Share Price, 52-Week Range||$150.00-$201.77|
|Costco’s Market Cap, 52-Week Range||$65.9 billion-$88.6 billion|
|2017 Revenue||$129 billion|
|2017 Profit||$2.7 billion|
|GOBankingRates’ Evaluation of Costco’s Net Worth||$83.8 billion|
|All information on 52-week range is accurate as of May 29, 2018.|
|CEO Craig Jelinek’s Salary||$713,462|
Click to read about why a Costco membership is more valuable than ever.
Costco’s Market Cap Range: $65.9B to $88.6B
A company’s overall stock value determines its market capitalization. Although Costco experiences more volatility than Target, for example, its net worth is situated comfortably near its market cap high, indicating a strong market presence, which might mean investors are also comfortable buying more stock.
Costco’s Net Worth: $83.8B
Even though market cap gives you a clear sense of what the market values a company at, it’s based entirely on market sentiment, which, in turn, is based on a multitude of consumer variables and market players.
The GOBankingRates Evaluation calculates a company’s net worth using only full-year profits and revenue from the last three years and the company’s assets and liabilities.
Based solely on Costco’s revenue and profits from the last three years, Costco’s net worth is over $80 billion.
Forbes ranked Costco as the world’s seventh-largest retailer in 2017, and CEOWORLD magazine determined that Costco was the second-largest retailer in the world in 2017. Deloitte also ranked Costco in 2016 as the second-largest retail power after Walmart. The rankings might be inconsistent, but the consensus is clear: Costco is one of the world’s most powerful, profitable retail brands, managing to stay afloat even as Amazon encroaches on large retailer market share due to its membership business model.
Costco’s more than 90 million cardholders pay $60 a year for access to the retailer’s selections and free samples. In the first three months in 2018, membership revenue alone brought in $716 million. Investors should also note Costco has consistently paid out dividends to shareholders since 2004, with those dividends growing in amount every year.
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Costco’s History and Investors
Costco started out as Price Club, with its first location being staged in a converted aircraft hangar in 1976. The company initially only served small businesses but realized it could increase profits by including in select customers in its consumer profile, resulting in the membership model familiar to shoppers today. Jim Senegal, an executive vice president of merchandising and marketing at Price Club, co-founded Costco Wholesale in 1983, and in 1993, Price Club and Costco Wholesale merged into one.
Costco operates 750 warehouses worldwide, with more than 500 located in the U.S., as of 2018. It attracts its fair share of investors, but the most famous is likely Warren Buffett, whose Berkshire Hathaway company owns more than 4,300,000 company shares as of May 2018.
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Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, 10 times the average of the net profits from the last three full fiscal years and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.