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Costco Wholesale Corp (COST) — WACC Analysis

WACC Breakdown

Costco Wholesale Corp (COST) has a weighted average cost of capital (WACC) of 8.5%. The cost of equity is 8.6%, derived from a beta of 0.68 and a risk-free rate of 5.3%. The after-tax cost of debt is 1.9%. The capital structure is 98.5% equity and 1.5% debt.

Interpretation

A WACC of 8.5% is moderate, reflecting the market's balanced risk assessment of Costco Wholesale Corp.

Investors can compare COST's WACC of 8.5% against industry peers to gauge its relative financing costs. A beta of 0.68 reflects the stock's volatility relative to the broader market.

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VALUATION

COST WACC: 8.51% for Costco Wholesale Corp

Current inputs imply a 8.61% cost of equity and a 2.35% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Costco Wholesale Corp Common Stock (COST) WACC Results
Weighted Average Cost of Capital
8.51%
Cost of Equity
8.61%
Risk-Free Rate5.28%
Beta0.68
Market Risk Premium4.23%
Cost of Debt
1.86%
Pre-Tax Cost of Debt2.35%
Tax Rate21.00%
Tax Shield0.49%
Capital Structure
Equity: 98.55%($417.54B)
Debt: 1.45%($6162.00M)
Equity Component
8.48%
98.55% × 8.61%
Debt Component
0.03%
1.45% × 1.86%

Costco Wholesale Corp (COST) WACC in context

Costco Wholesale Corp (COST) currently screens with an estimated WACC of 8.51%. That blends a 8.61% cost of equity, a 2.35% pre-tax cost of debt, and a 98.55% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What COST WACC implies

A 8.51% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates COST

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.68 and equity accounts for 98.55% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.

COST WACC: 8.51% — Costco Wholesale Corp Cost of Capital (October 2026) | DeepViews