Watsco Valuation
| WSO Stock | USD 510.75 1.85 0.36% |
At this time, the company appears to be overvalued. Watsco Inc maintains a prevalent Real Value of $427.53 per share. The last-minute price of the company is $510.75. Our model calculates the value of Watsco Inc from examining the company fundamentals such as Return On Asset of 0.11, profit margin of 0.07 %, and Current Valuation of 20.2 B as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Watsco's valuation include:
Price Book 7.739 | Enterprise Value | Enterprise Value Ebitda 25.5004 | Price Sales 2.6952 | Forward PE 34.0136 |
Overvalued
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 510.75 | Real 427.53 | Target 477.1 | Hype 510.2 |
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, news, and other external factors that may influence Watsco's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
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.
Watsco Cash |
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Watsco Valuation Trend
Knowing Watsco's actual value is paramount for traders when making sound investment determinations. Using both Watsco's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Watsco Total Value Analysis
Watsco Inc is at this time projected to have company total value of 20.2 B with market capitalization of 20.53 B, debt of 447.46 M, and cash on hands of 147.5 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Watsco fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
20.2 B | 20.53 B | 447.46 M | 147.5 M |
Watsco Investor Information
About 100.0% of the company outstanding shares are owned by institutional investors. The company recorded earning per share (EPS) of 13.28. 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 majority of Watsco outstanding shares are owned by institutional investors. These institutions are usually referred to as non-private investors looking to purchase positions in Watsco Inc to benefit from reduced commissions. Consequently, other corporate entities are subject to a different set of regulations than regular investors in Watsco Inc. Please pay attention to any change in the institutional holdings of Watsco Inc as this could imply that something significant has changed or is about to change at the company.Watsco Profitability Analysis
The company reported the last year's revenue of 7.62 B. Total Income to common stockholders was 635.74 M with profit before taxes, overhead, and interest of 2.04 B.Watsco Past Distributions to stockholders
About Watsco Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Watsco Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Watsco Inc based exclusively on its fundamental and basic technical indicators. By analyzing Watsco's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Watsco's intrinsic value. As compared to an absolute model, our relative 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 this time, Watsco's Dividends Paid is very stable compared to the past year. As of the 18th of March 2025, Dividend Paid And Capex Coverage Ratio is likely to grow to 2.24, while Dividend Yield is likely to drop 0.02. . At this time, Watsco's Retained Earnings are very stable compared to the past year. As of the 18th of March 2025, Price Earnings Ratio is likely to grow to 34.80, while Retained Earnings Total Equity is likely to drop about 629.3 M.
| 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 | 34.0136 |
Watsco Current Valuation Indicators
Watsco's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Watsco's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
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.When determining whether Watsco Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Watsco's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Watsco Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Watsco Inc Stock: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Watsco Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Is Trading Companies & Distributors space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Watsco. If investors know Watsco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Watsco listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.145 | Dividend Share 10.55 | Earnings Share 13.28 | Revenue Per Share | Quarterly Revenue Growth 0.094 |
The market value of Watsco Inc is measured differently than its book value, which is the value of Watsco that is recorded on the company's balance sheet. Investors also form their own opinion of Watsco's value that differs from its market value or its book value, called intrinsic value, which is Watsco's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Watsco's market value can be influenced by many factors that don't directly affect Watsco's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Watsco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Watsco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Watsco's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.