An investment of $1,000 in Costco 20 years ago would be worth approximately $27,600 today, including dividends, compared with roughly $7,900 in the broader market benchmark. This nearly 28-fold gain reflects the company’s ability to deliver consistent high-single-digit annual sales growth and steady membership renewal over two decades.

Costco’s club-store format requires customers to pay an annual fee, creating an annuity-like income stream that represented more than 80% of operating profits in the last fiscal year. In Q1 of fiscal 2026, the company reported sales growth of 8.2%, added over three million new members globally, and saw more than half of renewals upgrade to the executive tier—underscoring strong customer loyalty and recurring revenue potential.

Costco currently trades at a price-to-sales ratio of 1.5 versus its five-year average of 1.2, a price-to-earnings multiple of 51 compared with a long-term average of 44, and a price-to-book value of 14.1 against a five-year norm of 12.4. Its dividend yield of approximately 0.5% sits near the lowest level of the past decade, suggesting investors are paying a historically rich premium for ongoing growth.