Earnings Risk And Weaker Demand Trends Will Shape Future Outlook

AN

AnalystConsensusTarget

AnalystConsensusTarget

Not Invested

Based on Analyst Price Targets

Published

08 Aug 24

Updated

12 Dec 25

Views

95

n/a

n/a

AnalystConsensusTarget's Fair Value

n/a

1Y

-28.2%

7D

-1.9%

Loading

1Y

-28.2%

7D

-1.9%

You can edit this narrative until Dec 13 4:05 PM. Then, changes will post as Updates.

Author's Valuation

US$406.614.5% undervalued

AnalystConsensusTarget Fair Value

Shared on 12 Dec 25

Fair value Decreased 0.56%

WSO: Long-Term Fundamentals Will Outweigh Near-Term Southern Demand And Earnings Pressures

Analysts have trimmed their price target on Watsco by about 1 percent, or roughly $2. This reflects a slightly higher discount rate and modestly lower fair value assumptions amid increased near term earnings risk.

Shared on 28 Nov 25

Fair value Decreased 1.61%

WSO: Long-Term Fundamentals Will Offset Near-Term Demand Weakness In South

Analysts have lowered their fair value price target for Watsco from $415.60 to $408.90. This change is attributed to ongoing demand risks and softer earnings projections reflected in recent research updates.

Shared on 09 Nov 25

Fair value Decreased 5.07%

WSO: Market Position And Efficiency Initiatives Will Support Long-Term Upside

Analysts have lowered their price target for Watsco from $437.80 to $415.60. They cite concerns over softer HVAC demand and increased earnings risk in the coming quarters.

Shared on 26 Oct 25

Fair value Decreased 1.62%

Analysts have lowered their price target for Watsco, reducing it from $445 to $437.80. They cite recent survey data that signals weaker demand and a more challenging near-term outlook for the company.

Shared on 12 Oct 25

Fair value Decreased 1.85%

Narrative Update on Watsco Price Target Analysts have lowered their price target for Watsco, reducing it from $450 to $425. They cite expectations of slower profit margin growth and slightly lower fair value estimates, even though there are improved revenue growth projections and a marginally lower discount rate.

Shared on 28 Sep 25

Fair value Decreased 2.38%

The decrease in Watsco’s consensus analyst price target is primarily driven by a modest reduction in its future P/E multiple, with fair value now set at $453.40. Valuation Changes Summary of Valuation Changes for Watsco The Consensus Analyst Price Target has fallen slightly from $464.45 to $453.40.

Shared on 13 Sep 25

Fair value Decreased 0.89%

Watsco’s consensus Analyst Price Target saw a marginal decrease, reflecting minimal changes in both the company’s future P/E and discount rate, with fair value moving slightly from $468.64 to $464.45. What's in the News Watsco, Inc.

Shared on 07 May 25

Fair value Increased 0.81%

Shared on 30 Apr 25

Fair value Decreased 1.61%

AnalystConsensusTarget has increased revenue growth from 5.7% to 6.6%.

Shared on 23 Apr 25

Fair value Increased 0.91%

AnalystConsensusTarget has increased shares outstanding growth rate from 0.0% to 0.0%.

Shared on 16 Apr 25

Fair value Decreased 1.75%

Shared on 09 Apr 25

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 02 Apr 25

Fair value Decreased 0.96%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 26 Mar 25

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 19 Mar 25

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 10 Mar 25

Fair value Increased 0.088%

AnalystConsensusTarget has decreased revenue growth from 6.6% to 5.8%.

AnalystConsensusTarget Fair Value

US$406.6

14.5% undervalued

Future estimation in

Growth p.a.

Growth p.a.

%

Decrease

Increase

Current revenue growth rate

3.94%

Trade Distributors revenue growth rate

0.24%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

%

0

Decrease

Increase

Current discount rate

7.94%

Calculation

US$644.79m

Earnings '28

x

30.15x

PE Ratio '28

=

US$19.44b

Market Cap '28

US$19.44b

Market Cap '28

/

38.39m

No. shares '28

=

US$506.26

Share Price '28

US$506.26 Share Price '28

Discounted to 2025 @ 7.95% p.a.

=

US$402.42

Fair Value '25