Watsco, Inc. (WSO) Key Metrics
WSO valuation today
Trailing 12 months · as of October 18, 2026- Market cap
- $12.21B
- Enterprise value
- $13.02B
- P/E (TTM)
- 25.4 10-yr median 27.6
- Forward P/E
- 21.3
- PEG ratio
- 1.20
- Price / sales
- 1.7 10-yr median 1.5
- Price / book
- 4.3 10-yr median 4.3
- EV / EBITDA
- 18.6 10-yr median 16.7
- Dividend yield
- 3.85% $13.20 a year
- Beta
- 1.04
WSO key metrics, 2016–2025
Fiscal year ended December 31, 2025 · U.S. dollarsWSO valuation Price multiples at each fiscal year-end price.
WSO returns How much profit the business earns on the capital it uses.
WSO per-share figures Results divided by the shares outstanding at year-end.
WSO financial health Debt, liquidity and how easily interest is covered.
WSO efficiency & capital use Working capital cycle and where the cash goes.
WSO valuation history
WSO returns on capital
Net income (ROE, ROA) or after-tax operating income (ROIC) divided by the average of the opening and closing balance.
WSO debt vs cash
Debt includes short- and long-term borrowings and, where reported, lease liabilities.
WSO cash returned to shareholders
WSO price vs earnings per share
WSO key metrics
2016–2025| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Valuation | ||||||||||
| Market capitalization | $12.77B | $17.78B | $15.65B | $8.90B | $11.08B | $7.96B | $6.25B | $5.21B | $6.33B | $5.26B |
| Enterprise value | $12.52B | $17.44B | $15.85B | $9.14B | $11.33B | $8.03B | $6.55B | $5.27B | $6.27B | $5.44B |
| P/E ratio | 25.7 | 33.1 | 29.2 | 14.8 | 26.5 | 29.5 | 25.4 | 21.5 | 30.4 | 28.8 |
| Price / sales | 1.8 | 2.3 | 2.1 | 1.2 | 1.8 | 1.6 | 1.3 | 1.1 | 1.5 | 1.2 |
| Price / book | 4.6 | 6.7 | 7.0 | 4.0 | 5.5 | 4.5 | 3.6 | 3.3 | 4.1 | 4.2 |
| Price / free cash flow | 23.9 | 23.9 | 29.7 | 16.5 | 34.1 | 15.4 | 19.6 | 34.0 | 21.9 | 22.1 |
| Price / operating cash flow | 22.4 | 23.0 | 27.9 | 15.6 | 31.7 | 14.9 | 18.6 | 30.6 | 21.0 | 18.9 |
| EV / sales | 1.7 | 2.3 | 2.2 | 1.3 | 1.8 | 1.6 | 1.4 | 1.2 | 1.4 | 1.3 |
| EV / EBITDA | 16.0 | 22.0 | 19.7 | 10.6 | 17.3 | 18.8 | 16.7 | 13.4 | 16.7 | 14.9 |
| EV / free cash flow | 23.4 | 23.5 | 30.1 | 17.0 | 34.8 | 15.5 | 20.5 | 34.3 | 21.7 | 22.9 |
| Earnings yield | 3.9% | 3.0% | 3.4% | 6.8% | 3.8% | 3.4% | 3.9% | 4.7% | 3.3% | 3.5% |
| Free cash flow yield | 4.2% | 4.2% | 3.4% | 6.0% | 2.9% | 6.5% | 5.1% | 2.9% | 4.6% | 4.5% |
| Dividend yield | 3.7% | 2.4% | 2.4% | 3.7% | 2.7% | 3.3% | 3.9% | 4.0% | 2.6% | 2.4% |
| Shareholder yield (dividends + buybacks) | 3.7% | 2.6% | 2.5% | 4.7% | 2.7% | 3.4% | 3.9% | 4.1% | 2.7% | 2.5% |
| Share price at fiscal year-end | $336.95 | $473.89 | $428.47 | $249.40 | $312.88 | $226.55 | $180.15 | $139.14 | $170.04 | $148.12 |
| Per share | ||||||||||
| Revenue per share | $191.01 | $203.10 | $199.38 | $203.86 | $177.29 | $143.81 | $137.57 | $121.37 | $116.63 | $118.79 |
| Earnings per share | $13.11 | $14.30 | $14.68 | $16.85 | $11.83 | $7.67 | $7.09 | $6.48 | $5.59 | $5.15 |
| Operating cash flow per share | $15.03 | $20.61 | $15.38 | $16.03 | $9.87 | $15.20 | $9.68 | $4.55 | $8.11 | $7.82 |
| Free cash flow per share | $14.12 | $19.81 | $14.41 | $15.08 | $9.19 | $14.74 | $9.21 | $4.09 | $7.75 | $6.70 |
| Cash per share | $19.35 | $20.85 | $5.75 | $4.13 | $3.34 | $4.16 | $2.15 | $2.21 | $2.16 | $1.58 |
| Book value per share | $73.39 | $70.83 | $61.04 | $63.01 | $56.39 | $50.63 | $49.45 | $42.76 | $41.66 | $35.23 |
| Tangible book value per share | $55.63 | $53.23 | $42.55 | $46.03 | $38.86 | $34.06 | $32.63 | $28.35 | $27.05 | $20.08 |
| Dividends per share | $12.50 | $11.29 | $10.47 | $9.32 | $8.31 | $7.56 | $6.96 | $5.58 | $4.41 | $3.59 |
| Capex per share | $0.91 | $0.80 | $0.97 | $0.95 | $0.68 | $0.46 | $0.47 | $0.46 | $0.48 | $1.23 |
| Debt per share | $12.63 | $11.93 | $11.08 | $10.94 | $10.44 | $6.15 | $11.00 | $3.63 | $0.60 | $6.64 |
| Shares outstanding | 37.9M | 37.5M | 36.5M | 35.7M | 35.4M | 35.2M | 34.7M | 37.5M | 37.2M | 35.5M |
| Change in shares outstanding | +1.0% | +2.7% | +2.4% | +0.7% | +0.8% | +1.4% | −7.4% | +0.6% | +4.8% | +0.6% |
| Returns & profitability | ||||||||||
| Return on equity (ROE) | 18.3% | 21.9% | 24.0% | 28.3% | 22.2% | 15.4% | 14.8% | 15.4% | 14.9% | 14.9% |
| Return on invested capital (ROIC) | 22.8% | 26.1% | 26.0% | 29.8% | 24.4% | 16.7% | 16.3% | 19.0% | 17.9% | 16.8% |
| Return on assets (ROA) | 11.1% | 13.0% | 14.9% | 18.3% | 15.0% | 10.7% | 10.4% | 11.5% | 10.6% | 10.0% |
| Return on tangible assets | 13.1% | 13.9% | 17.6% | 20.9% | 17.0% | 14.1% | 12.5% | 15.0% | 13.9% | 13.7% |
| Free cash flow margin | 7.4% | 9.8% | 7.2% | 7.4% | 5.2% | 10.2% | 6.7% | 3.4% | 6.6% | 5.6% |
| Income quality (OCF / net income) | 1.15 | 1.44 | 1.05 | 0.95 | 0.83 | 1.98 | 1.37 | 0.70 | 1.45 | 1.52 |
| Financial health | ||||||||||
| Total debt | $478.8M | $447.5M | $404.8M | $390.5M | $369.7M | $216.1M | $381.4M | $136.0M | $22.3M | $235.8M |
| Cash & short-term investments | $733.3M | $781.9M | $210.1M | $147.5M | $118.3M | $146.1M | $74.5M | $82.9M | $80.5M | $56.0M |
| Net debt | −$254.5M | −$334.5M | $194.7M | $243.0M | $251.4M | $70.1M | $306.9M | $53.1M | −$58.2M | $179.8M |
| Debt / equity | 0.17 | 0.17 | 0.18 | 0.17 | 0.19 | 0.12 | 0.22 | 0.08 | 0.01 | 0.19 |
| Debt / assets | 0.11 | 0.10 | 0.11 | 0.11 | 0.12 | 0.09 | 0.15 | 0.06 | 0.01 | 0.13 |
| Net debt / EBITDA | −0.33 | −0.42 | 0.24 | 0.28 | 0.38 | 0.16 | 0.78 | 0.13 | −0.15 | 0.49 |
| Current ratio | 4.12 | 3.13 | 3.36 | 2.54 | 2.70 | 3.00 | 3.35 | 4.03 | 3.21 | 3.94 |
| Quick ratio | 2.18 | 1.72 | 1.47 | 1.02 | 1.16 | 1.41 | 1.36 | 1.69 | 1.38 | 1.76 |
| Interest coverage | 24.9 | 37.5 | 161.5 | 384.1 | 631.1 | 323.7 | 91.0 | 135.8 | 55.6 | 93.1 |
| Working capital | $2.24B | $2.10B | $1.68B | $1.39B | $1.23B | $997.3M | $1.09B | $1.08B | $920.9M | $925.3M |
| Invested capital | $2.53B | $2.32B | $2.42B | $2.49B | $2.25B | $1.85B | $2.02B | $1.65B | $1.49B | $1.43B |
| Tangible asset value | $2.55B | $2.40B | $1.94B | $1.64B | $1.38B | $1.20B | $1.13B | $1.06B | $1.01B | $713.4M |
| Net current asset value | $1.72B | $1.61B | $1.28B | $1.06B | $873.0M | $779.9M | $705.3M | $882.5M | $841.5M | $617.3M |
| Graham number | $147.15 | $150.95 | $142.00 | $154.54 | $122.49 | $93.47 | $88.84 | $78.98 | $72.41 | $63.86 |
| Graham net-net per share | $20.84 | $17.73 | $10.10 | $4.29 | $3.14 | $6.47 | $2.71 | $8.50 | $8.70 | $3.73 |
| Capital allocation | ||||||||||
| Dividends paid | $473.8M | $423.5M | $382.6M | $332.4M | $294.5M | $265.7M | $241.4M | $209.2M | $164.1M | $127.6M |
| Share buybacks (net) | $3.7M | $39.7M | $2.8M | $87.1M | $1.1M | $2.3M | $1.5M | $3.8M | $4.7M | $4.0M |
| Dividend payout ratio | 95.3% | 79.0% | 71.3% | 55.3% | 70.3% | 98.6% | 98.2% | 86.1% | 78.8% | 69.8% |
| Dividends + buybacks / free cash flow | 89.2% | 62.3% | 73.2% | 78.0% | 90.8% | 51.7% | 76.1% | 138.8% | 58.5% | 55.2% |
| Capex / revenue | 0.5% | 0.4% | 0.5% | 0.5% | 0.4% | 0.3% | 0.3% | 0.4% | 0.4% | 1.0% |
| Capex / operating cash flow | 6.1% | 3.9% | 6.3% | 5.9% | 6.9% | 3.1% | 4.9% | 10.1% | 5.9% | 15.7% |
| Capex / depreciation | 0.79 | 0.74 | 1.01 | 1.07 | 0.86 | 0.63 | 0.67 | 0.78 | 0.81 | 2.17 |
| Stock-based compensation / revenue | 0.5% | 0.5% | 0.4% | 0.4% | 0.4% | 0.4% | 0.4% | 0.3% | 0.3% | 0.3% |
| SG&A / revenue | 18.5% | 16.5% | 16.3% | 16.8% | 16.9% | 16.5% | 16.8% | 16.7% | 16.5% | 16.3% |
| Efficiency | ||||||||||
| Days sales outstanding | 42.2 | 40.1 | 38.7 | 36.3 | 35.9 | 38.6 | 39.6 | 39.3 | 40.1 | 40.1 |
| Days of inventory on hand | 97.1 | 89.5 | 93.7 | 86.5 | 75.5 | 81.7 | 88.8 | 85.1 | 80.6 | 77.8 |
| Days payables outstanding | 29.5 | 28.2 | 28.5 | 28.5 | 24.4 | 23.4 | 22.2 | 22.9 | 23.2 | 18.9 |
| Cash conversion cycle (days) | 109.8 | 101.5 | 104.0 | 94.2 | 87.0 | 96.9 | 106.2 | 101.5 | 97.5 | 99.0 |
| Receivables turnover | 8.65 | 9.09 | 9.43 | 10.06 | 10.18 | 9.46 | 9.21 | 9.28 | 9.10 | 9.11 |
| Payables turnover | 12.38 | 12.96 | 12.82 | 12.79 | 14.98 | 15.60 | 16.43 | 15.91 | 15.75 | 19.27 |
| Inventory turnover | 3.76 | 4.08 | 3.89 | 4.22 | 4.83 | 4.47 | 4.11 | 4.29 | 4.53 | 4.69 |
| Asset turnover | 1.61 | 1.84 | 2.02 | 2.21 | 2.25 | 2.00 | 2.02 | 2.16 | 2.21 | 2.30 |
| Average receivables | $837.1M | $837.9M | $772.5M | $722.8M | $616.9M | $534.5M | $517.9M | $490.0M | $477.1M | $463.5M |
| Average payables | $420.7M | $430.1M | $412.8M | $410.2M | $307.9M | $245.6M | $219.9M | $215.4M | $208.0M | $165.3M |
| Average inventory | $1.39B | $1.37B | $1.36B | $1.24B | $954.7M | $857.3M | $879.0M | $799.2M | $723.2M | $679.5M |
| Intangibles / total assets | 15.1% | 14.6% | 18.1% | 17.4% | 20.1% | 23.3% | 22.8% | 25.0% | 26.6% | 28.7% |
Computed from WSO's annual financial statements (latest annual report filed February 27, 2026) and the closing share price on each fiscal year-end, adjusted for stock splits. Figures in U.S. dollars; data from EODHD. Averages use the opening and closing balance of each year.
WSO valuation and financial ratios
At the end of fiscal 2025 (December 31, 2025), Watsco traded at 25.7 times earnings, against a 10-year median of 27.6. Based on the latest twelve months, the trailing P/E is 25.4 and the forward P/E is 21.3. Watsco earned a return on equity of 18.3% and a return on invested capital of 22.8% in fiscal 2025. It ended the year with $478.8 million of debt and $733.3 million in cash and short-term investments, a net cash position of $254.5 million. It returned $477.4 million to shareholders: $473.8 million in dividends and $3.7 million in share buybacks, 89% of free cash flow. The share count rose 6.7% from 35.5M to 37.9M over 9 years.
See the WSO income statement, the WSO chart for price history, or the WSO stock overview for the latest quote and news.
WSO key metrics FAQ
What is Watsco's P/E ratio?
Watsco's trailing P/E ratio is 25.4 based on the last twelve months of earnings (as of October 18, 2026), and its forward P/E is 21.3. At the end of fiscal 2025 it was 25.7, compared with a 10-year median of 27.6.
What is Watsco's EV/EBITDA?
Watsco's enterprise value was 16.0 times EBITDA at the end of fiscal 2025 (enterprise value $12.5 billion, EBITDA $781.4 million); the current EV/EBITDA is 18.6.
What is Watsco's return on equity?
Watsco's return on equity (ROE) was 18.3% in fiscal 2025: net income of $497.0 million on average shareholders' equity of $2.7 billion.
What is Watsco's ROIC?
Watsco's return on invested capital was 22.8% in fiscal 2025, using after-tax operating income divided by average debt plus equity minus cash.
How much debt does Watsco have?
Watsco had total debt of $478.8 million at the end of fiscal 2025, a debt-to-equity ratio of 0.17 and more cash than debt.
What is Watsco's dividend yield?
Watsco's forward dividend yield is 3.85%. Watsco paid $473.8 million in dividends in fiscal 2025 ($12.50 per share), a payout ratio of 95.3%.
Does Watsco buy back its shares?
Yes. Watsco spent $3.7 million on net share repurchases in fiscal 2025 Shares outstanding changed +1.0% over the year, to 37.9M..
What is Watsco's free cash flow yield?
Watsco generated $535.1 million of free cash flow in fiscal 2025, a free cash flow yield of 4.2% on its market value at year-end ($12.8 billion).
What is Watsco's current ratio?
Watsco's current ratio was 4.12 at the end of fiscal 2025: current assets were 4.12 times current liabilities.