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 Undervalued zone, suggesting that its current forward PE ratio of 27.70 is considered Undervalued compared with the five-year average of 32.77. The fair price of Watsco Inc (WSO.B) is between 350.69 to 415.06 according to relative valuation methord. Compared to the current price of 345.38 USD , Watsco Inc is Undervalued By 1.51%.
Relative Value
Fair Zone
350.69-415.06
Current Price：345.38
1.51%
Undervalued
27.09
PE
1Y
3Y
5Y
Trailing
Forward
17.17
EV/EBITDA
Watsco Inc. (WSO.B) has a current EV/EBITDA of 17.17. The 5-year average EV/EBITDA is 20.27. The thresholds are as follows: Strongly Undervalued below 16.64, Undervalued between 16.64 and 18.45, Fairly Valued between 22.09 and 18.45, Overvalued between 22.09 and 23.90, and Strongly Overvalued above 23.90. The current Forward EV/EBITDA of 17.17 falls within the Undervalued range.
18.16
EV/EBIT
Watsco Inc. (WSO.B) has a current EV/EBIT of 18.16. The 5-year average EV/EBIT is 21.51. The thresholds are as follows: Strongly Undervalued below 17.62, Undervalued between 17.62 and 19.57, Fairly Valued between 23.45 and 19.57, Overvalued between 23.45 and 25.39, and Strongly Overvalued above 25.39. The current Forward EV/EBIT of 18.16 falls within the Undervalued range.
1.79
PS
Watsco Inc. (WSO.B) has a current PS of 1.79. The 5-year average PS is 2.22. The thresholds are as follows: Strongly Undervalued below 1.72, Undervalued between 1.72 and 1.97, Fairly Valued between 2.47 and 1.97, Overvalued between 2.47 and 2.71, and Strongly Overvalued above 2.71. The current Forward PS of 1.79 falls within the Undervalued range.
20.88
P/OCF
Watsco Inc. (WSO.B) has a current P/OCF of 20.88. The 5-year average P/OCF is 23.80. The thresholds are as follows: Strongly Undervalued below 18.06, Undervalued between 18.06 and 20.93, Fairly Valued between 26.67 and 20.93, Overvalued between 26.67 and 29.53, and Strongly Overvalued above 29.53. The current Forward P/OCF of 20.88 falls within the Undervalued range.
21.53
P/FCF
Watsco Inc. (WSO.B) has a current P/FCF of 21.53. The 5-year average P/FCF is 28.96. The thresholds are as follows: Strongly Undervalued below 18.62, Undervalued between 18.62 and 23.79, Fairly Valued between 34.13 and 23.79, Overvalued between 34.13 and 39.30, and Strongly Overvalued above 39.30. The current Forward P/FCF of 21.53 falls within the Undervalued range.
Watsco Inc (WSO.B) has a current Price-to-Book (P/B) ratio of 4.80. Compared to its 3-year average P/B ratio of 6.46 , the current P/B ratio is approximately -25.72% higher. Relative to its 5-year average P/B ratio of 6.46, the current P/B ratio is about -25.72% higher. Watsco Inc (WSO.B) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.55%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.55% , the current FCF yield is about -100.00% lower.
4.69
P/B
Median3y
6.46
Median5y
6.46
3.85
FCF Yield
Median3y
3.55
Median5y
3.55
Competitors Valuation Multiple
The average P/S ratio for WSO.B's competitors is , providing a benchmark for relative valuation. Watsco Inc Corp (WSO.B) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -4.31%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of WSO.B decreased by 33.48% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from 9.34 to 9.15.
The secondary factor is the Revenue Growth, contributed -4.31%to the performance.
Overall, the performance of WSO.B in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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