Costco: A Warehouse of Value…and Valuation?

But admiring the engine is not the same as admiring the price of the fuel. Costco, in its relentless efficiency, has reached a valuation that requires a certain… faith. A leap, if you will, over a chasm filled with discounted toilet paper and the ghosts of overvalued retailers past. The problem, naturally, isn’t the business itself. It’s the number currently affixed to each share. Approaching the thousand-dollar mark again, investors would do well to consider if they’re buying a company, or simply a particularly robust rumour.







