Watsco, Inc.

Watsco, Inc.

WSOยทNYSE

$368.36

+1.2%
IndustrialsIndustrial - Distribution

Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, refrigeration equipment, and related parts and supplies. The company distributes equipment comprising residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. It also offers parts, including replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies. The company serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. As of December 31, 2021, it operated from 671 locations in the United States, Canada, Mexico, and Puerto Rico, as well as exports its products to Latin America and the Caribbean Basin. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida.

At a Glance

Live Snapshot
Market Cap$14.98B
EPS12.2500
P/E Ratio30.07
Earnings Date07/29/2026
Watsco, Inc.

Watsco, Inc. Fair Value Envelope

WSO ยท NYSE

Our analysis suggests that WSO has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $368.36, this represents a potential HIDDEN relative to our calculated worth for Watsco, Inc..

Intrinsic Value
Current Price: $368.36

Owner Earnings Valuation Tool

Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation

Historical Financial Data

Base year metrics used for projections

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Projection Settings

Forecast period and terminal assumptions

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DCF Valuation Summary

Calculation flow from present value to intrinsic value per share

Present Value$1.3B
+ Cash & Equivalents$433.3M
Firm Value$1.7B
- Debt$478.8M
Equity Value$1.2B
/ Shares Outstanding40,669,694B
DCF Value$30
OVERVALUED BY 92%

Owner Earnings Projections

Operating Cash Flow - Maintenance CapEx = Owner Earnings

Metric
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Operating Cash Flow
$410.5M
$295.9M
$213.3M
$153.7M
$110.8M
$79.8M
$57.5M
$41.5M
$29.9M
$21.5M
Maintenance CapEx
-$4.9M
-$3.5M
-$2.6M
-$1.8M
-$1.3M
-$955.8K
-$688.9K
-$496.5K
-$357.9K
-$257.9K
Owner Earnings
$405.6M
$292.4M
$210.7M
$151.9M
$109.5M
$78.9M
$56.9M
$41.0M
$29.5M
$21.3M
Discount Factor
0.926
0.857
0.794
0.735
0.681
0.630
0.583
0.540
0.500
0.463
Present Value
$375.6M
$250.6M
$167.3M
$111.6M
$74.5M
$49.7M
$33.2M
$22.1M
$14.8M
$9.9M
Terminal Value represents 13.1% of Enterprise Value