Wesco International Inc (WCC) is slightly overvalued and Watsco Inc (WSO) is overvalued.
Both trade above our estimate of their intrinsic value. WCC is the closer of the two: -18%, against -63% for WSO.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.1% (average of 3 methods) values the shares at $306.67; the price of $362.08 is 18% above that value, and 73% of that value comes from beyond year five.
Leak Score 14/100 on 3 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 | WCC | WSO |
|---|---|---|
| Verdict | Slightly overvalued | Overvalued |
| Price | $362.08 | $325.58 |
| Intrinsic value | $306.67 | $199.68 |
| Margin of safety | -18% | -63% |
| Leak Score | 14/100 (3/12) | 59/100 (3/12) |
| Market cap | $17.6B | $13.4B |
| Revenue growth, 5 years | 13.8% | 7.4% |
| Operating margin | 5.7% | 9.0% |
| Net margin | 2.9% | 6.1% |
| Return on equity | 14.3% | 15.3% |
| Debt to equity | 1.28 | 0.18 |
| P/E | 25.0x | 28.3x |
| Forward P/E | 18.1x | 24.8x |
| P/B | 3.4x | 4.5x |
| Dividend yield | 0.6% | 3.8% |