Watsco, Inc.

DB:WC3 Stock Report

Market Cap: €18.0b

Watsco Valuation

Is WC3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of WC3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€366.06
Fair Value
29.7% overvalued intrinsic discount
11
Number of Analysts

Below Fair Value: WC3 (€474.7) is trading above our estimate of fair value (€366.06)

Significantly Below Fair Value: WC3 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WC3?

Key metric: As WC3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WC3. This is calculated by dividing WC3's market cap by their current earnings.
What is WC3's PE Ratio?
PE Ratio35x
EarningsUS$536.29m
Market CapUS$18.85b

Price to Earnings Ratio vs Peers

How does WC3's PE Ratio compare to its peers?

The above table shows the PE ratio for WC3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.7x
BNR Brenntag
16.9x15.0%€9.2b
MTX MTU Aero Engines
25.6x14.1%€16.4b
8TRA Traton
6.7x8.0%€17.3b
KBX Knorr-Bremse
29.7x21.4%€13.3b
WC3 Watsco
35x8.6%€18.8b

Price-To-Earnings vs Peers: WC3 is expensive based on its Price-To-Earnings Ratio (35x) compared to the peer average (19.7x).

Price to Earnings Ratio vs Industry

How does WC3's PE Ratio compare vs other companies in the European Trade Distributors Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
WC3 35.0xIndustry Avg. 14.2xNo. of Companies11PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WC3 is expensive based on its Price-To-Earnings Ratio (35x) compared to the European Trade Distributors industry average (14.2x).

Price to Earnings Ratio vs Fair Ratio

What is WC3's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WC3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35x
Fair PE Ratio18.5x

Price-To-Earnings vs Fair Ratio: WC3 is expensive based on its Price-To-Earnings Ratio (35x) compared to the estimated Fair Price-To-Earnings Ratio (18.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst WC3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€474.70
€462.52
-2.6%
13.3%€533.23€314.23n/a11
Feb ’26€460.70
€462.50
+0.4%
12.9%€533.17€315.06n/a11
Jan ’26€450.70
€459.38
+1.9%
13.4%€525.47€310.51n/a11
Dec ’25€520.40
€445.42
-14.4%
13.9%€516.23€305.05n/a11
Nov ’25€436.00
€433.83
-0.5%
13.2%€508.64€300.56n/a11
Oct ’25€446.00
€413.37
-7.3%
13.2%€493.96€278.41n/a11
Sep ’25€427.80
€415.31
-2.9%
13.4%€503.75€283.93n/a11
Aug ’25€434.90
€412.63
-5.1%
13.9%€507.93€286.29n/a11
Jul ’25€430.70
€386.60
-10.2%
12.5%€462.95€263.88n/a11
Jun ’25€435.60
€386.60
-11.2%
12.5%€462.95€263.88n/a11
May ’25€418.10
€387.83
-7.2%
12.3%€466.35€265.82n/a11
Apr ’25€399.60
€372.63
-6.8%
13.6%€464.05€257.08n/a12
Mar ’25€362.60
€372.63
+2.8%
13.6%€464.05€257.08n/a12
Feb ’25€361.00
€370.10
+2.5%
15.6%€456.50€241.03€460.7012
Jan ’25€386.80
€356.42
-7.9%
16.6%€457.20€241.40€450.7012
Dec ’24€362.20
€342.32
-5.5%
12.1%€424.85€249.24€520.4012
Nov ’24€338.40
€342.32
+1.2%
12.1%€424.85€249.24€436.0012
Oct ’24€355.80
€329.20
-7.5%
12.7%€422.69€231.07€446.0013
Sep ’24€337.40
€318.51
-5.6%
12.9%€411.30€224.84€427.8013
Aug ’24€343.00
€316.10
-7.8%
13.3%€409.73€223.98€434.9013
Jul ’24€349.40
€309.68
-11.4%
13.2%€366.56€208.02€430.7013
Jun ’24€302.40
€314.19
+3.9%
13.7%€374.28€212.40€435.6013
May ’24€313.60
€297.42
-5.2%
15.7%€362.20€205.55€418.1011
Apr ’24€293.00
€282.62
-3.5%
17.2%€353.70€199.96€399.6011
Mar ’24€282.10
€282.62
+0.2%
17.2%€353.70€199.96€362.6011
Feb ’24€271.90
€248.44
-8.6%
14.1%€297.71€183.42€361.0011
Analyst Price Target
Consensus Narrative from 11 Analysts
€462.38
Fair Value
2.7% overvalued intrinsic discount
11
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/22 18:04
End of Day Share Price 2025/02/21 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Watsco, Inc. is covered by 31 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David MantheyBaird
Scott DavisBarclays
Robert BarryBuckingham Research Group Inc.