Costco Wholesale Corporation

AI-generated fair value estimate for this company.

Method: 10-year two-stage FCFE DCF: $9.39B FY2026 free cash flow base (operating cash flow $15.83B less capex $6.44B); 8% annual FCF growth for years 1-5 (new club openings, membership-fee increases, e-commerce growth); 6% for years 6-10; 7.5% discount rate; 3% terminal growth; $11.63B net cash ($20.21B cash less $8.58B total debt); 443.27M shares outstanding.

Reasoning: Costco's capital-light, membership-driven model and consistent high-single-digit comp growth support a steady two-stage FCF DCF; the low 7.5% discount rate reflects its exceptionally low business risk, defensive demand, and investment-grade balance sheet with a net cash position.