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Watsco, Inc (W1SO34) Fair Value & Analysis

Industrials · BR · Market cap R$81.6B

WI Watsco, Inc W1SO34 · SA
PriceR$79.29
Fair ValueR$9.51
Upside-88.0%
Quality55/100
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Evidence: High Range R$6.95 – R$12.85

Fair value as of: Jul 16, 2026

From 24 valuation models · updated today

Fair value updated Jul 16, 2026, revised from R$9.48 to R$9.51 (+0.3%) since Jun 24, 2026. Share price +6.4% over the past month.

Price vs Fair Value (12 months)

R$107.48 R$71.86 Fair Value R$9.51 Jul 2025 Jul 2026

12‑month range R$71.86 – R$107.48 · fair‑value band R$6.95 – R$12.85 · the R$79.29 price screens above the R$9.51 fair value. As of Jul 16, 2026.

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Analysis

Watsco, Inc (W1SO34) currently trades at R$79.29, while our model-based Fair Value estimate is R$9.51, implying the stock looks roughly 88.0% overvalued today. We read business quality at 55/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Watsco, Inc generated revenue of R$7.2B at a net margin of 6.9%. Revenue grew 0.1% year over year. It earns a return on equity of 18.6%. Net debt stands at R$55.2M. Fundamentals as of Jul 16, 2026

Our scenario range runs from R$6.95 (bear case) to R$12.85 (bull case); at R$79.29, the current price sits above that range. The share trades about 27% below its 52-week high and 10% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -48% fair-value upside, at -88%, W1SO34 screens richer than that median.

Key figures & financial health

Revenue (TTM) R$7.2B
Revenue growth (YoY) +0.1%
Net margin 6.9%
Return on equity 18.6%
Free cash flow R$535M FY2025
P/E ratio 31.3
More key figures
Operating margin 6.9%
EPS (TTM) R$2.53
EPS growth (YoY) -3.1%
Net debt R$55.2M FY2021

Figures from reported company fundamentals (EODHD) · as of Jul 16, 2026. TTM = trailing twelve months.

About the company

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 …

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Watsco, Inc reported revenue of R$7.2B in FY2025 versus R$6.3B in FY2021, a compound +3.6%/yr. Reported net income was R$497M in FY2025, compounding +4.4%/yr from FY2021.

Revenue +3.6%/yr
FY21 R$6.3B
FY22 R$7.3B
FY23 R$7.3B
FY24 R$7.6B
FY25 R$7.2B
Net income +4.4%/yr
FY21 R$419M
FY22 R$601M
FY23 R$536M
FY24 R$536M
FY25 R$497M

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Cite: Fair Value Calculator (2026). "Watsco, Inc Fair Value". https://www.fairvalue-calculator.com/stock/W1SO34

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Frequently asked questions

Is Watsco, Inc (W1SO34) undervalued?
As of Jul 16, 2026, our model estimates a fair value of R$9.51 versus a price of R$79.29, about −88% (overvalued). Model-based estimate, not financial advice.
What is the fair value of W1SO34?
Our model-based fair value for Watsco, Inc is R$9.51 (as of Jul 16, 2026), built from audited fundamentals. The current price is R$79.29.
What is the quality score of W1SO34?
Watsco, Inc has a Quality Score of 55/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Watsco, Inc (W1SO34)?
Watsco, Inc reported trailing-twelve-month revenue of about R$7.2B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of W1SO34?
The net profit margin of Watsco, Inc is about 6.9%, meaning it keeps roughly 6.9% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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Not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.