QXO Inc (QXO) is fairly valued and Watsco Inc (WSO) is overvalued.
Against our estimates of intrinsic value, QXO trades at the wider discount: a margin of safety of +3%, against -63% for WSO.
Values as of the 22 Sept 2026 close.
A 1.8x revenue multiple, discounted for its losses, values the shares at $13.14; the price of $12.78 is 3% below that value.
Leak Score 0/100 on 2 of 12 signals
Discounting its cash flows at 9.8% (average of 3 methods) values the shares at $199.68; the price of $325.58 is 63% above that value, and 73% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | QXO | WSO |
|---|---|---|
| Verdict | Fairly valued | Overvalued |
| Price | $12.78 | $325.58 |
| Intrinsic value | $13.14 | $199.68 |
| Margin of safety | +3% | -63% |
| Leak Score | 0/100 (2/12) | 59/100 (3/12) |
| Market cap | $13.3B | $13.4B |
| Revenue growth, 5 years | 178.0% | 7.4% |
| Operating margin | -1.4% | 9.0% |
| Net margin | -6.6% | 6.1% |
| Return on equity | -4.6% | 15.3% |
| Debt to equity | 0.57 | 0.18 |
| P/E | — | 28.3x |
| Forward P/E | 19.7x | 24.8x |
| P/B | 1.0x | 4.5x |
| Dividend yield | 1.9% | 3.8% |