| Component | PV ($B) | % of EV |
|---|---|---|
| Sum of explicit PVs (FY26–FY35) | 45.2 | 41% |
| PV of terminal value | 64.0 | 59% |
| Enterprise value | 109.2 | 100% |
| + Cash & equivalents | 14.2 | — |
| – Total debt | (6.9) | — |
| Equity value | 116.5 | — |
| ÷ Diluted shares (M) | 443.5 | — |
| Implied value / share | $263 | — |
vs. trading $946.68 — the DCF says Costco is priced at 3.6× intrinsic value.
| WACC \ g | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 7.4% | $281 | $309 | $343 | $386 | $441 |
| 7.9% | $253 | $275 | $302 | $335 | $376 |
| 8.4% | $229 | $248 | $263 | $297 | $330 |
| 8.9% | $209 | $224 | $241 | $262 | $290 |
| 9.4% | $191 | $203 | $217 | $234 | $257 |
Even at the most generous corner (7.4% WACC, 3.5% g), implied value reaches $441 — still less than half the trading price. The DCF and the market disagree by an order of magnitude.