Costco's Q4 2025 net sales increased 8% to $84.4 billion, exceeding the typical quarterly revenue growth. Comparable store sales rose 5.7%, with the U.S. lagging at 5.1%. Despite having 914 warehouses worldwide, Costco's growth potential is significant, especially in China where it only has 7 locations. While total revenue rose from $79.7 billion to $86.156 billion, operating income only increased by $300 million. Merchandise costs are the cause, up from $69.588 billion to $75 billion. The net income of the company is almost doubled in the year. Discounted cash flow valuation model suggests an intrinsic value per share of $837.25, while the current market price is $943.31. With a forward P/E of 49, Costco is overvalued compared to Amazon, Nvidia, and other tech companies. The analysis sets a sell recommendation because of the high valuation.