Subject: Re: Costco
Another way to value; split the business into Retail Sales and Subscription Revenue and apply multipliers.

Here is one (reminder : all models have flaws, some are useful)


Retail Sales              : 98% of Revenue x 0.90 Multiplier  = 88.2
Subscription Revenue      :  2% of Revenue x 10 Multiplier    = 20.0

TOTAL                                                         = 108.2

They might do $260B in revenue this year x 108% = $280B Valuation (they are $315B or about 10% above this)

tecmo
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