Watsco Inc (WSO)

NYSE · Industrials · Industrial Distribution · USA

Watsco Inc is a large cap company (market value between $10 billion and $200 billion) in the Industrial Distribution industry.

Watsco distributes equipment for air conditioning, heating and refrigeration systems across North America, along with related parts and supplies. Operating through numerous locations, the company serves contractors in both replacement and new construction markets, offering products from major manufacturers alongside parts, supplies and ductwork. Watsco also supplies commercial refrigeration products to industrial and commercial customers.

From its FY2025 annual report (Form 10-K)

Intrinsic value, DCF valuation, financial health and value investing analysis for the Watsco Inc stock.

Our verdict on WSO

Overvalued: intrinsic value $219.06 per share, market price $294.00, margin of safety -34.2% (as of 2026-10-19).

Discounting its cash flows at 10.0% (average of 3 methods) values the shares at $219.06; the price of $294.00 is 34% above that value, and 73% of that value comes from beyond year five.

Leak Score: 68/100 on 11 of 12 signals (Faint Leak).

ETFs with the most weight in WSO

17 more funds hold it; the full list is part of the paid plan.

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6 more in this industry show a wider margin of safety.

Is WSO undervalued or overvalued?

WSO is overvalued (as of the 2026-10-19 close). Discounting its cash flows at 10.0% (average of 3 methods) values the shares at $219.06; the price of $294.00 is 34% above that value, and 73% of that value comes from beyond year five.

What is the intrinsic value of WSO?

$219.06 per share (as of the 2026-10-19 close), against a market price of $294.00. That is a margin of safety of -34.2%. The value is the average of the valuation methods that apply to this company, recomputed every night after the US close.

What is Watsco Inc's Leak Score?

68 out of 100, which we rate "Faint Leak", on 11 of 12 value investing signals.