May. 23 at 10:46 AM
$WMT $COST $SPY $CPB $XOP
Walmart (WMT) and Costco (COST) trade at premium valuations, with Costco commanding a higher multiple due to its recurring membership fee revenue and higher return on invested capital:
Walmart (NYSE: WMT): Trades at a forward price-to-earnings (P/E) ratio of roughly 43x to 44x, with a forward EPS (Earnings Per Share) estimated around
$3.28.
Costco (NASDAQ: COST): Trades at a forward P/E ratio of roughly 47x to 49x, with a forward EPS estimated around
$22.47
At these multiples, buying the SGOV really makes sense. Collect the monthly 4% yield and wait.
I don’t know when the correction is coming, but forward PE’s at these levels are insane.
Some Food producers trading in the high single digits.
Large miners around PE 10-14
E&P oil/gas PE 10-12
China forward PE 10-14
There’s many other sectors trading 100-400% lower
