The analysis assesses Costco's financial performance and stock valuation. Net sales for the quarter increased by 8% to $84.4 billion, up from $78.2 billion in the same quarter last year. The total company comparable store sales increased by 5.7% for the 16 weeks ended August 31, 2025. In the US, sales were up 5.1%, in Canada 6.3%, and in other parts of the world 8.6%. Revenue reached $86.156 billion, up from $79.697 billion, and the operating income increased to $3.341 billion from $3.042 billion in the same quarter last year. The operating income increased by $300 million, while sales increased by nearly $6.5 billion. Merchandise costs increased from $69.6 billion to $75 billion. The discounted cash flow valuation model increases the intrinsic value per share to $837, while the current market price is $943. The forward P/E is 49. Given a choice between buying Costco stock at this price or keeping money in cash, the analyst prefers Costco stock. However, with other stocks at better valuations, they offer a better risk-reward.