Watsco (WSO) DCF: History & Chart

Watsco, Inc.(WSO)

Industrial - Distribution · Miami, FL

$313.05-1.34 (-0.43%)

Delayed quote: Aug 27, 2026, 4:00 PM EDT

About Watsco, Inc.

Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean. It distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. The company also offers parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies. It serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. Watsco, Inc. was incorporated in 1956 and is headquartered in Miami, Florida.

Miami, FL

7,000 employees

www.watsco.com

Industrials / Industrial - Distribution

Sector: Industrials
Industry: Industrial - Distribution
CEO: Albert H. Nahmad

View full financials

Watsco, Inc. (WSO) DCF Valuation

Price is ABOVE the estimated range

$178.67

$301.22

Model scenario range

$313.05

Today's price

TGM's two-stage DCF values Watsco, Inc. (WSO) between $178.67 and $301.22 depending on assumptions, with a base case of $228.79. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (9.3%) reflects its beta.

What would today's price require?

Growth the price assumes+13.2%/yr

Actual FCF growth, last 5 years+15.8%/yr

$313.05 is justified only if free cash flow grows about +13.2% a year (fading to 2.5% long-run) at a 9.3% required return — slower than the company has actually grown.

Scenario	FCF growth (fading to 2.5%)	Discount	Value / share
Conservative	2.1%/yr	10.3%	$178.67
Base case	5.1%/yr	9.3%	$228.79
Optimistic	8.1%/yr	8.3%	$301.22
Third-party model estimate (FMP)	independent reference · retrieved Aug 28, 2026 · assumptions not provided		$212.10

The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.

Price|PE Ratio|FCF Yield|All Metrics

Current Price

$313.05

Market-Implied Growth

+13.2%/yr

vs +15.8% 5Y actual

Model Scenario Range

$178.67 – $301.22

model output — not a price target

WSO DCF Fair Value Calculator

Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for WSO (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.

FCF Growth Rate5.1%/yr

Historical FCF CAGR: 3Y 22.8% · 5Y 15.8% · 10Y 8.0%

Discount Rate (WACC)9.3%

Terminal Growth2.5%

Projection Years10yr

Base inputs: FCF $535.7M · 0.04B shares · net cash $433.3M

Estimated Fair Value

$228.79

-26.9% vs $313.05

Current price$313.05

Third-party model estimate (FMP)$212.10

Sensitivity — fair value by discount rate × terminal growth

How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.1%/yr FCF growth and 10-year horizon fixed. Green = above today's $313.05; red = below. Your current case is outlined.

WACC ↓ / Terminal →	1.50%	2.00%	2.50%	3.00%	3.50%
7.3%	$276	$296	$321	$352	$391
8.3%	$236	$250	$267	$287	$311
9.3%	$206	$217	$229	$243	$259
10.3%	$184	$192	$200	$210	$222
11.3%	$166	$172	$178	$186	$195