WSO-B

Watsco, Inc.

Industrials · $13.6B market cap

Is WSO-B undervalued?

Share price

$303.30

as of Oct 31, 2026

Fair value

$181.80

Sticker Price

Payback Price

$72.72

buy price

Based on annual results to Dec 2025.

Overpriced

WSO-B is Overpriced: at $303.30 it trades 67% above its fair value of $181.80. Its buy price (Payback Price) is $72.72, 76% below today's price. Business quality is solid: 3 of 5 key numbers clear the 10% bar.

How we valued it

Free Cash Flow. Sales grew -0% a year over the last 3 years, below the 15% we look for in a fast grower, so we value it on its free cash flow instead of an earnings forecast.

Business quality

3 of 5 clear the 10% bar. What are the Big Five?

Earnings per share growth13.9% a year✓
Equity per share growth7.2% a year✗
Sales growth7.8% a year✗
Free cash flow growth12.4% a year✓
Return on invested capital17.2%✓

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Questions about WSO-B

What is WSO-B's fair value?

$181.80 as of Oct 31, 2026, worked out with the Free Cash Flow. Sales grew -0% a year over the last 3 years, below the 15% we look for in a fast grower, so we value it on its free cash flow instead of an earnings forecast.

At what price would WSO-B be a buy?

At or below its buy price of $72.72, a 60% margin of safety below its fair value.

Is WSO-B undervalued right now?

WSO-B is Overpriced: at $303.30 it trades 67% above its fair value and 317% above its buy price.

How can I check WSO-B's value myself?

Use the free Sticker Price calculator, already filled with WSO-B's numbers. Change the growth, P/E or required return and see what you'd pay. Open the calculator →

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About Watsco, Inc.

Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean. It distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. The company also offers parts comprising 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. It serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. Watsco, Inc. was incorporated in 1956 and is headquartered in Miami, Florida.

Industrial - Distribution

Fair value and Payback Price are estimates from the company's reported financials, not investment advice. Prices as of Oct 31, 2026. How the Payback Price works