Watsco, Inc (WSO-B) Fair Value & Analysis
Industrials · US · Market cap $15.7B
Watsco, Inc
WSO-B · US
Fair value as of: Jul 12, 2026
From 26 valuation models · updated 10 days ago
Share price +10.0% over the past month.
Price vs Fair Value (12 months)
12‑month range $333.14 – $453.37 · fair‑value band $183.13 – $314.51 · the $385.00 price screens above the $251.37 fair value. As of Jul 12, 2026.
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Watsco, Inc (WSO-B) currently trades at $385.00, while our model-based Fair Value estimate is $251.37, implying the stock looks roughly 34.7% overvalued today. We read business quality at 59/100 (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: medium).
Over the trailing twelve months, Watsco, Inc generated revenue of $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 $45.5M. Fundamentals as of Jul 12, 2026
Our scenario range runs from $183.13 (bear case) to $314.51 (bull case); at $385.00, the current price sits above that range. The share trades about 15% below its 52-week high and 16% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -51% fair-value upside, at -35%, WSO-B screens cheaper than that median.
Key figures & financial health
More key figures
Figures from reported company fundamentals (EODHD) · as of Jul 12, 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 $7.2B in FY2025 versus $6.3B in FY2021, a compound +3.6%/yr. Reported net income was $497M in FY2025, compounding +4.4%/yr from FY2021.
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Recent news
- Watsco (WSO) Sets July 29 Earnings Call Following Undervalued Narrative
- Watsco Schedules Second Quarter Conference Call on Wednesday, July 29, 2026 at 10:00 a.m. (EDT)
- Data Center Builder Spikes After Goldman Initiates Coverage At Buy Rating
- 3 Mid-Cap Stocks That Concern Us
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection, not financial advice.
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10 more Industrial Distribution stocks, each showing price versus our Fair Value estimate (as of Jul 12, 2026).
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|---|---|---|---|
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| WESCO International, Inc WCC | $334.19 | $117.47 | -65% |
| Toromont Industries Ltd TMTNY | $32.93 | $17.32 | -47% |
| Diploma PLC DPMAY | $23.82 | $10.96 | -54% |
| Applied Industrial Technologies, Inc AIT | $313.67 | $168.94 | -46% |
| Indutrade AB IDDWF | $26.45 | $15.35 | -42% |
| Finning International Inc FTT | C$102.38 | C$53.63 | -48% |
| Addtech AB ADDHY | $17.05 | $7.52 | -56% |
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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.