Basically, when you examine Costco's valuation you can only come away with one take -- the stock is historically expensive. Yes, it is a good company, but it probably isn't a good stock to buy right now.

Costco's stock price has surged 50% since April last year, pushing its PE ratio from 45x to 62x, despite modest sales and earnings growth. Click here to read.

As an employee, I think the tiramisu cheesecake, Essentia water, and Igloo cooler bags are some of the best things to get at Costco right now.