WSO-BWatsco, Inc.
Is the price fair?
Neither cheap nor expensive: growth expectations in line with delivery and in its normal P/E range.
Priced for ~5% a year FCF growth. Moderate growth expectations are priced in.
In its normal range: P/E 26.5 vs a 22.6 median over 40 quarters (+17% vs median).
Where this answer is blind. The growth-implied estimate assumes a fixed discount rate; capital-heavy sectors look structurally rich on it.
What WSO-B's price assumes
Watsco, Inc. trades at 26.5× earnings against 25.9× for the median Industrial Distribution name, more expensive than its own group.
Trailing P/E · Industrial Distribution median 25.9 · 1.02× the median: the market pays up for this one
- Price / sales
- 1.91
Price / sales · as of 2026-Q1
- Free cash flow yield
- 5.3%
Free cash flow yield · Industrial Distribution median 4.1%
- Growth the price implies
- +4.9%
Growth the price implies · The price pays for +4.9% free cash flow growth a year for a decade; the business has delivered +5.5% a year over the last three.
Details›
- Price / bookas of 2026-Q1
- 5.02
- EV / EBITas of 2026-Q1
- 19.1
- EV / salesas of 2026-Q1
- 1.90
- Industrials median P/E440 names
- 26.5
- Industrial Distribution median P/E20 names
- 25.9
- Free cash flow, trailing twelve months
- $694M
- Market capitalisation
- $13.1B
- 3-year revenue growth
- −0.28%
- 3-year free cash flow growth
- +5.5%
| Method | Per share |
|---|---|
| Its own P/E history, lower quartile | $252.58 |
| Its own P/E history, median | $274.15 |
| Its own P/E history, upper quartile | $352.20 |
| 52-week range | $309.70 – $453.37 |
| Today | $321.70 |
Multiples from SEC filings and end-of-day closes; implied growth from a reverse discounted cash flow. Group medians across the names Ryufin tracks.
Industrial Distribution
Ranks #4 of 17 by RyuScore