## COST PE Stream Chart Analysis **Current Valuation (Latest Data Point — mid-March 2026):** COST's most recent monthly average price stands at approximately **$979.92**, positioning the stock between the **43.5x** (Fair) and **49.2x** (Watch) PE boundary lines, whose corresponding price thresholds are **$813.23** and **$920.00** respectively at the 43.5x and 49.2x levels — wait, more precisely, the price of $979.92 sits **above** the 49.2x boundary ($920.00) and **below** the 54.9x boundary ($1,026.78). This places COST firmly in the **"Overvalued"** zone (between 49.2x and 54.9x PE multiples), indicating that the stock is trading at a historically elevated earnings multiple relative to its own PE river bands. Investors should note that at current prices, the stock has surpassed the Watch threshold and entered territory that warrants caution, as the next resistance level — the **"Warning"** zone — begins at the 54.9x boundary near $1,026.78. **Historical Valuation Trend:** From early 2021 through mid-2022, COST's monthly average price hovered predominantly in the **"Undervalued" to "Value"** zone (below the 32.1x–37.8x PE bands, with prices ranging from roughly $315 to $552), reflecting a period when the stock was attractively priced relative to its earnings power. Beginning in late 2022 and through 2023, the stock consolidated in the **"Fair" to "Watch"** interval (43.5x–49.2x range), with prices oscillating between approximately $450 and $540. A significant valuation re-rating began in late 2023 and accelerated through 2024, as the monthly average price surged from around $560 to over $960, pushing COST decisively through the Fair and Watch zones and into the **Overvalued** band. Notably, in early 2025, the stock briefly approached the **"Warning"** threshold (54.9x, ~$942–$1,040), with the February 2025 average price touching approximately $1,040 — nearly breaching the 60.6x Warning boundary of $1,040.41. Since then, prices have moderated slightly but remain elevated in the Overvalued zone. The overall PE river trend has been **consistently upward-sloping**, reflecting strong and growing earnings, yet the stock's price appreciation has outpaced earnings growth in recent periods, compressing the margin of safety and signaling that the current valuation demands a premium that leaves limited room for error.