Watsco, Inc. (WSO) Valuation
Historical valuation analysis based on 500 data points (2024-09-27 to 2026-09-25)
Watsco is the largest HVAC and refrigeration products distributor in North America with approximately 13% market share. The company primarily operates in the United States (90% of revenue) with sig...
Watsco, Inc. (WSO) currently trades at a P/E ratio of 27.04 (historical range: 25.14–47.88, median: 33.05), placing it at the 13th percentile — cheap relative to its history, P/S ratio of 1.85 (range: 1.77–3.35, 8th percentile — cheap relative to its history), EV/EBITDA of 18.53 (range: 17.30–33.02, 12th percentile).
Over the historical period (2024-09-27 to 2026-09-25), Watsco, Inc.'s P/E ratio has contracted by 23% over the observed period (from an average of 39.0 to 30.2).
Watsco, Inc. trades well below its historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Min | Median | Max | Percentile | Assessment |
|---|---|---|---|---|---|---|
| P/E Ratio | 27.04 | 25.14 | 33.05 | 47.88 | 13th | cheap relative to its history |
| P/S Ratio | 1.85 | 1.77 | 2.31 | 3.35 | 8th | cheap relative to its history |
| EV/EBITDA | 18.53 | 17.30 | 22.77 | 33.02 | 12th | cheap relative to its history |
| FCF Yield | 5.18% | 1.83% | 3.36% | 5.43% | 93th | cheap relative to its history |
Watsco, Inc. (WSO) Valuation & P/E History
Watsco, Inc. (WSO) is a US-listed stock operating in the Industrials sector, specifically the Wholesale-Hardware & Plumbing & Heating Equipment & Supplies industry currently trading at $317.23 with a market capitalization of $13.1 billion. This page provides historical valuation analysis for WSO based on 500 data points covering 2024-09-27 to 2026-09-25. The P/E ratio of 27.04 is below the historical median of 33.05, placing WSO at the 13th percentile of its valuation range. The P/S ratio of 1.85 compares to a median of 2.31.
WSO Valuation Metrics & Historical Range
The valuation table above shows Watsco, Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether WSO is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests WSO is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Watsco, Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is WSO Overvalued or Undervalued?
Watsco, Inc. trades well below its historical valuation range across most metrics. The overall valuation percentile of 11 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive WSO is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full WSO analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.WSO trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.