A Wonderful Business at $905: Does Costco Still Clear the Value Investing Bar

Views: 5 2026-09-11 Costco operates membership only warehouse clubs, selling groceries, household goods, and general merchandise at thin markups and making most of its profit from annual membership fees rather than product margin. The company runs roughly 900 warehouses worldwide, carries a deliberately narrow selection of about 4,000 items per store to secure volume pricing, and sells a meaningful share of goods under its own Kirkland Signature private label. Membership renewal rates have stayed above 90 percent for years, which gives the business unusually predictable, recurring cash flow for a retailer. Intrinsic value, DCF: point estimate about 540 USD per …

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