THE GHOST TRAIN
THE FINANCE GHOST: Mutliplying the risks at US retailer Costco
America’s sweetheart trades on a p:e that induces altitude sickness, despite the baleful shadow of Trump tariffs
05 June 2025 - 05:00
On the JSE, some retailers are trading at a p:e that causes even a few growth investors, let alone value investors, to scratch their heads.
Everything is bigger in ’Murica though, including the earnings multiples of their favourite retailers. Costco is trading on a casual p:e of 60, more than double even the best South African retailers. At this stage, the market is happy to buy these companies on an earnings yield that is way below the US 10-year bond yield. Costco is more appealing than Uncle Sam, apparently...
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