WSO-BWatsco, Inc.

$321.70-24% 1Y

Is the price fair?

Fair

Neither cheap nor expensive: growth expectations in line with delivery and in its normal P/E range.

1 neutral, 2 without data
What the price assumes~+5% a yearderived · Mar 31, 2026

Priced for ~5% a year FCF growth. Moderate growth expectations are priced in.

Vs its own P/E rangemid-range for this companyderived

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.

26.5

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%
What the market has paid for these earnings: 40 quarters of its own multiple × $12.14 of trailing earnings per share
MethodPer 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.