Watsco, Inc. (WSO): Price and Financial Metrics

WSO Stock Price Chart Interactive Chart >

WSO Price/Volume Stats

Watsco, Inc. (WSO) Company Bio

Watsco distributes air conditioning, heating, and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. The company was founded in 1945 and is based in Miami, Florida.

WSO Price Forecast Based on DCF Valuation

We started the process of determining a valid price forecast for Watsco Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Watsco Inc ranked in the 59th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 17.83%. As for the metrics that stood out in our discounted cash flow analysis of Watsco Inc, consider:

• The company's debt burden, as measured by earnings divided by interest payments, is 280.42 -- which is good for besting 97.84% of its peer stocks (US stocks in the Industrials sector with positive cash flow).
• The business' balance sheet reveals debt to be 2% of the company's capital (with equity being the remaining amount). Approximately just 10.55% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
• WSO's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 50.24% of tickers in our DCF set.

GPN, MLHR, EVI, RGR, and TRU can be thought of as valuation peers to WSO, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.