WSO.B Valuation

Watsco Inc

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434.825

0(0.000%)1D

Overview
Forecast
Valuation
Earnings

WSO.B Relative Valuation

WSO.B's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, WSO.B is overvalued; if below, it's undervalued.

Historical Valuation

Watsco Inc (WSO.B) is now in the Overvalued zone, suggesting that its current forward PE ratio of 33.99 is considered Overvalued compared with the five-year average of 34.38. The fair price of Watsco Inc (WSO.B) is between 393.23 to 430.16 according to relative valuation methord. Compared to the current price of 434.82 USD , Watsco Inc is Overvalued By 1.09%.

Relative Value

Fair Zone

393.23-430.16

Current Price：434.82

1.09%

Overvalued

33.99

Trailing

Forward

20.57

EV/EBITDA

Watsco Inc. (WSO.B) has a current EV/EBITDA of 20.57. The 5-year average EV/EBITDA is 21.11. The thresholds are as follows: Strongly Undervalued below 18.95, Undervalued between 18.95 and 20.03, Fairly Valued between 22.19 and 20.03, Overvalued between 22.19 and 23.27, and Strongly Overvalued above 23.27. The current Forward EV/EBITDA of 20.57 falls within the Historic Trend Line -Fairly Valued range.

22.09

EV/EBIT

Watsco Inc. (WSO.B) has a current EV/EBIT of 22.09. The 5-year average EV/EBIT is 22.44. The thresholds are as follows: Strongly Undervalued below 20.25, Undervalued between 20.25 and 21.35, Fairly Valued between 23.53 and 21.35, Overvalued between 23.53 and 24.62, and Strongly Overvalued above 24.62. The current Forward EV/EBIT of 22.09 falls within the Historic Trend Line -Fairly Valued range.

2.31

Watsco Inc. (WSO.B) has a current PS of 2.31. The 5-year average PS is 2.35. The thresholds are as follows: Strongly Undervalued below 2.12, Undervalued between 2.12 and 2.23, Fairly Valued between 2.46 and 2.23, Overvalued between 2.46 and 2.57, and Strongly Overvalued above 2.57. The current Forward PS of 2.31 falls within the Historic Trend Line -Fairly Valued range.

24.97

P/OCF

Watsco Inc. (WSO.B) has a current P/OCF of 24.97. The 5-year average P/OCF is 24.59. The thresholds are as follows: Strongly Undervalued below 18.94, Undervalued between 18.94 and 21.77, Fairly Valued between 27.42 and 21.77, Overvalued between 27.42 and 30.25, and Strongly Overvalued above 30.25. The current Forward P/OCF of 24.97 falls within the Historic Trend Line -Fairly Valued range.

39.81

P/FCF

Watsco Inc. (WSO.B) has a current P/FCF of 39.81. The 5-year average P/FCF is 31.28. The thresholds are as follows: Strongly Undervalued below 23.78, Undervalued between 23.78 and 27.53, Fairly Valued between 35.03 and 27.53, Overvalued between 35.03 and 38.78, and Strongly Overvalued above 38.78. The current Forward P/FCF of 39.81 falls within the Strongly Overvalued range.

Watsco Inc (WSO.B) has a current Price-to-Book (P/B) ratio of 7.00. Compared to its 3-year average P/B ratio of 7.00 , the current P/B ratio is approximately -0.05% higher. Relative to its 5-year average P/B ratio of 7.00, the current P/B ratio is about -0.05% higher. Watsco Inc (WSO.B) has a Forward Free Cash Flow (FCF) yield of approximately 2.48%. Compared to its 3-year average FCF yield of 3.49%, the current FCF yield is approximately -28.79% lower. Relative to its 5-year average FCF yield of 3.49% , the current FCF yield is about -28.79% lower.

7.00

P/B

Median3y

7.00

Median5y

7.00

2.48

FCF Yield

Median3y

3.49

Median5y

3.49

Competitors Valuation Multiple

The average P/S ratio for WSO.B's competitors is 3.23, providing a benchmark for relative valuation. Watsco Inc Corp (WSO.B) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of -2.17%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Carlisle Companies Inc

Performance Decomposition

Market capitalization of WSO.B decreased by 8.81% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 37.49 to 37.76.

The secondary factor is the Revenue Growth, contributed -2.17%to the performance.

Overall, the performance of WSO.B in the past 1 year is driven by P/E Change. Which is more unsustainable.

-2.17%

1.56B → 1.53B

Revenue Growth

-7.36%

6.66 → 6.17

Margin Expansion

0.72%

37.49 → 37.76

P/E Change

-8.81%