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 Wholesale stock dipped Thursday after the discount retailer’s fiscal second-quarter earnings narrowly missed Wall Street’s expectations. The company reported earnings of $4.02 a share for the quarter that ended February,

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.