Case Study: COSTCO Conglomerate

(Conservative View)

Business Segments Subsidiaries Market Capitalization

Grocery Retail Puregold Price Club Inc. 148 billion 72.4016 billion
S&R Membership Shopping -
Specialty Retail Office Warehouse -
Wine and Liquor Montosco Inc. -
Meritus Prime Distributions Inc. -
Premier Wine and Spirits Inc. -
Real Estate Ellimac Prime Holdings Inc., -
Fertuna Holdings Corp., -
Patagonia Holdings Corp., -
Nation Realty Inc., 118 Holdings -
Inc., NE Pacific Shopping -
Centers Corp., Pure Petroleum -
Corp. -

Oils and Minerals Alcorn Petroleum and Minerals -

Corporation
TOTAL 72.4016 billion

1. 148 billion x 0.4892 = 72.4016 billion

P 148 billion – total market capitalization of PGOLD
0.4892 – percentage own by COSTCO from PGOLD
P 72.4016 billion – amount COSTCO owns PGOLD
2. 72.4016 billion ÷ 7.2 billion = 10.06
P 72.4016 billion – total market capitalization of all subsidiaries
7.2 billion – shares outstanding of COSTCO
P 10.06 – intrinsic value

*there are times that the parent company does hold the entirety of a subsidiary or child company. Like
in this case, COSTCO owns only 48.92% of PGOLD.

*the intrinsic value P 10.06 has not taken into account the other subsidiaries yet. Meaning, it could be
higher. This is because the other subsidiaries’ does not have their market capitalization