Historical Valuation
Watsco Inc (WSO) is now in the Fair zone, suggesting that its current forward PE ratio of 27.25 is considered Fairly compared with the five-year average of 26.02. The fair price of Watsco Inc (WSO) is between 271.10 to 405.61 according to relative valuation methord.
Relative Value
Fair Zone
271.10-405.61
Current Price：360.76
Fair
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Watsco Inc (WSO) has a current Price-to-Book (P/B) ratio of 4.68. Compared to its 3-year average P/B ratio of 6.39 , the current P/B ratio is approximately -26.77% higher. Relative to its 5-year average P/B ratio of 6.17, the current P/B ratio is about -24.19% higher. Watsco Inc (WSO) has a Forward Free Cash Flow (FCF) yield of approximately 3.94%. Compared to its 3-year average FCF yield of 3.70%, the current FCF yield is approximately 6.54% lower. Relative to its 5-year average FCF yield of 3.77% , the current FCF yield is about 4.65% lower.
P/B
Median3y
6.39
Median5y
6.17
FCF Yield
Median3y
3.70
Median5y
3.77
Competitors Valuation Multiple
AI Analysis for WSO
The average P/S ratio for WSO competitors is 2.61, providing a benchmark for relative valuation. Watsco Inc Corp (WSO.N) exhibits a P/S ratio of 1.75, which is -32.82% above the industry average. Given its robust revenue growth of -4.31%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for WSO
1Y
3Y
5Y
Market capitalization of WSO increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of WSO in the past 1 year is driven by Unknown.
People Also Watch
Frequently Asked Questions
Is WSO currently overvalued or undervalued?
Watsco Inc (WSO) is now in the Fair zone, suggesting that its current forward PE ratio of 27.25 is considered Fairly compared with the five-year average of 26.02. The fair price of Watsco Inc (WSO) is between 271.10 to 405.61 according to relative valuation methord.
What is Watsco Inc (WSO) fair value?
WSO'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. The fair price of Watsco Inc (WSO) is between 271.10 to 405.61 according to relative valuation methord.
How does WSO's valuation metrics compare to the industry average?
The average P/S ratio for WSO's competitors is 2.61, providing a benchmark for relative valuation. Watsco Inc Corp (WSO) exhibits a P/S ratio of 1.75, which is -32.82% above the industry average. Given its robust revenue growth of -4.31%, this premium appears unsustainable.
What is the current P/B ratio for Watsco Inc (WSO) as of Jan 09 2026?
As of Jan 09 2026, Watsco Inc (WSO) has a P/B ratio of 4.68. This indicates that the market values WSO at 4.68 times its book value.
What is the current FCF Yield for Watsco Inc (WSO) as of Jan 09 2026?
As of Jan 09 2026, Watsco Inc (WSO) has a FCF Yield of 3.94%. This means that for every dollar of Watsco Inc’s market capitalization, the company generates 3.94 cents in free cash flow.
What is the current Forward P/E ratio for Watsco Inc (WSO) as of Jan 09 2026?
As of Jan 09 2026, Watsco Inc (WSO) has a Forward P/E ratio of 27.25. This means the market is willing to pay $27.25 for every dollar of Watsco Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Watsco Inc (WSO) as of Jan 09 2026?
As of Jan 09 2026, Watsco Inc (WSO) has a Forward P/S ratio of 1.75. This means the market is valuing WSO at $1.75 for every dollar of expected revenue over the next 12 months.