Costco Wholesale (NASDAQ: COST) is a $370-billion-market-cap retailer that can hold its own against some of the sector's largest players. The core business model has a lot to do with the company's success, which makes it an attractive stock. But Costco is almost always expensive and looks particularly expensive right now.

Here's what you need to know about Costco stock before you decide whether to buy it.

Costco isn't just any retailer; it is technically a club. Customers pay an annual membership fee for the privilege of shopping at one of its stores. That has to be looked at more closely, though, to really understand how powerful a fact this ends up being.

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Source Fool.com