Watsco Valuation
| WSO-B Stock | USD 507.10 3.39 0.67% |
At this time, the company appears to be fairly valued. Watsco Inc maintains a prevalent Real Value of $502.55 per share. The last-minute price of the company is $507.1. Our model calculates the value of Watsco Inc from examining the company fundamentals such as Profit Margin of 0.07 %, current valuation of 20.28 B, and Return On Asset of 0.11 as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Watsco's valuation include:
Price Book 7.7116 | Enterprise Value | Enterprise Value Ebitda 25.6057 | Price Sales 2.7062 | Forward PE 33.8983 |
Fairly Valued
Today
Please note that Watsco's price fluctuation is very steady at this time. Calculation of the real value of Watsco Inc is based on 3 months time horizon. Increasing Watsco's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Watsco is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Watsco Stock. However, Watsco's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 507.1 | Real 502.55 | Hype 507.1 | Naive 517.49 |
The real value of Watsco Stock, also known as its intrinsic value, is the underlying worth of Watsco Inc Company, which is reflected in its stock price. It is based on Watsco's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Watsco's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Watsco Inc helps investors to forecast how Watsco stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Watsco more accurately as focusing exclusively on Watsco's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Watsco's intrinsic value based on its ongoing forecasts of Watsco's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Watsco's closest peers. If more than one evaluation category is relevant for Watsco we suggest using both methods to arrive at a better estimate.
Watsco Cash |
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Watsco Valuation Trend
Comparing Watsco's enterprise value against its market capitalization is a good way to estimate the value of Watsco Inc uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
Watsco Total Value Analysis
Watsco Inc is at this time estimated to have takeover price of 20.28 B with market capitalization of 20.62 B, debt of 447.46 M, and cash on hands of 55.91 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Watsco fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
20.28 B | 20.62 B | 447.46 M | 55.91 M |
Watsco Investor Information
About 91.0% of the company outstanding shares are owned by insiders. The company recorded earning per share (EPS) of 13.29. Watsco Inc last dividend was issued on the 17th of January 2025. The entity had 3:2 split on the 17th of August 1998. Based on the analysis of Watsco's profitability, liquidity, and operating efficiency, Watsco Inc is performing exceptionally good at this time. It has a great probability to report excellent financial results in April.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.11 | 0.1026 |
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| Total Cash From Operating Activities | 811.8 M | 773.1 M |
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| Operating Income | 820.9 M | 781.8 M |
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Watsco Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Watsco has an asset utilization ratio of 170.07 percent. This suggests that the Company is making $1.7 for each dollar of assets. An increasing asset utilization means that Watsco Inc is more efficient with each dollar of assets it utilizes for everyday operations.Watsco Ownership Allocation
The market capitalization of Watsco Inc is $20.62 Billion. Watsco Inc maintains majority of its outstanding shares owned by insiders. An insider is usually defined as a corporate executive, director, member of the board or institutional investor who own at least 10% of the company's outstanding shares. 91.4 (%) of Watsco Inc outstanding shares that are owned by insiders attests that they have been buying or selling the stock in recent months in anticipation of some upcoming event. Note, that even with substantial debt, if the true value of the company is larger than the current market value, you may still be able to generate positive returns on investment in this company at some point.Watsco Profitability Analysis
The company reported the revenue of 7.62 B. Net Income was 635.74 M with profit before overhead, payroll, taxes, and interest of 2.04 B.Watsco Past Distributions to stockholders
| 31st of October 2024 | ||
| 16th of October 2024 | ||
| 31st of July 2024 | ||
| 30th of April 2024 | ||
| 31st of January 2024 | ||
| 31st of October 2023 | ||
| 31st of July 2023 | ||
| 28th of April 2023 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Watsco's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Watsco and how it compares across the competition.
About Watsco Valuation
The stock valuation mechanism determines Watsco's current worth on a weekly basis. Our valuation model uses a comparative analysis of Watsco. We calculate exposure to Watsco's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Watsco's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 2 B | 2.1 B | |
| Pretax Profit Margin | 0.11 | 0.11 | |
| Operating Profit Margin | 0.10 | 0.11 | |
| Net Profit Margin | 0.07 | 0.07 | |
| Gross Profit Margin | 0.27 | 0.28 |
Watsco Quarterly Retained Earnings |
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A single share of Watsco represents a small ownership stake in the entity. As a stockholder of Watsco, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Watsco Dividends Analysis For Valuation
At present, Watsco's Dividends Paid is projected to increase significantly based on the last few years of reporting. The current year's Dividend Paid And Capex Coverage Ratio is expected to grow to 2.24, whereas Dividend Yield is forecasted to decline to 0.02. . At present, Watsco's Retained Earnings are projected to increase significantly based on the last few years of reporting. The current year's Retained Earnings Total Equity is expected to grow to about 1.2 B, whereas Earnings Yield is forecasted to decline to 0.03.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 423.5 M | 444.7 M | |
| Dividend Yield | 0.02 | 0.02 | |
| Dividend Payout Ratio | 0.79 | 0.42 | |
| Dividend Paid And Capex Coverage Ratio | 1.83 | 2.24 |
There are various types of dividends Watsco can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Watsco shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Watsco Inc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Watsco pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Watsco by the value of the dividends paid out.
Watsco Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 37.5 M | |
| Quarterly Earnings Growth Y O Y | 0.145 | |
| Forward Price Earnings | 33.8983 |
Watsco Current Valuation Indicators
Valuation refers to the process of determining the present value of Watsco Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Watsco we look at many different elements of the entity such as Watsco's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Watsco, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Watsco's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Watsco's worth.Complementary Tools for Watsco Stock analysis
When running Watsco's price analysis, check to measure Watsco's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Watsco is operating at the current time. Most of Watsco's value examination focuses on studying past and present price action to predict the probability of Watsco's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Watsco's price. Additionally, you may evaluate how the addition of Watsco to your portfolios can decrease your overall portfolio volatility.
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