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Watsco (Watsco) Cyclically Adjusted Price-to-FCF : (As of Apr. 27, 2024)


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What is Watsco Cyclically Adjusted Price-to-FCF?

Shiller PE for Stocks: The True Measure of Stock Valuation


Watsco Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Watsco's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Watsco Cyclically Adjusted Price-to-FCF Chart

Watsco Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.61 32.91 38.60 26.31 40.15

Watsco Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 33.24 38.95 36.63 40.15 -

Competitive Comparison of Watsco's Cyclically Adjusted Price-to-FCF

For the Industrial Distribution subindustry, Watsco's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Watsco's Cyclically Adjusted Price-to-FCF Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Watsco's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Watsco's Cyclically Adjusted Price-to-FCF falls into.



Watsco Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Watsco's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Watsco's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=2.479/129.4194*129.4194
=2.479

Current CPI (Mar. 2024) = 129.4194.

Watsco Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 -2.911 100.560 -3.746
201409 3.196 100.428 4.119
201412 2.808 99.070 3.668
201503 -0.614 99.621 -0.798
201506 -2.120 100.684 -2.725
201509 5.167 100.392 6.661
201512 3.690 99.792 4.786
201603 1.202 100.470 1.548
201606 -0.086 101.688 -0.109
201609 3.093 101.861 3.930
201612 3.087 101.863 3.922
201703 0.923 102.862 1.161
201706 -0.167 103.349 -0.209
201709 4.607 104.136 5.726
201712 3.395 104.011 4.224
201803 -1.314 105.290 -1.615
201806 0.495 106.317 0.603
201809 2.478 106.507 3.011
201812 2.798 105.998 3.416
201903 1.419 107.251 1.712
201906 0.303 108.070 0.363
201909 3.572 108.329 4.267
201912 3.842 108.420 4.586
202003 1.085 108.902 1.289
202006 6.138 108.767 7.303
202009 3.063 109.815 3.610
202012 4.444 109.897 5.233
202103 -1.205 111.754 -1.395
202106 3.202 114.631 3.615
202109 6.547 115.734 7.321
202112 0.597 117.630 0.657
202203 -3.097 121.301 -3.304
202206 4.619 125.017 4.782
202209 7.824 125.227 8.086
202212 5.643 125.222 5.832
202303 -1.513 127.348 -1.538
202306 -1.375 128.729 -1.382
202309 9.373 129.860 9.341
202312 7.841 129.419 7.841
202403 2.479 129.419 2.479

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Watsco  (NYSE:WSO) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Watsco Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Watsco's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Watsco (Watsco) Business Description

Industry
Traded in Other Exchanges
Address
2665 South Bayshore Drive, Suite 901, Miami, FL, USA, 33133
Watsco is the largest heating, ventilation, air-conditioning, and refrigeration products distributor in North America. The company primarily operates in the United States (91% of 2022 revenue) with significant exposure in the Sunbelt states. Watsco also has operations in Canada (5% of sales) and Latin America and the Caribbean (4% of sales). The company's customer base consists of more than 120,000 dealers and contractors that serve the replacement and new construction HVACR markets for residential and light commercial applications.
Executives
Ana Lopez-blazquez director 2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
Valerie Schimel director 2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
John Alexander Macdonald director 2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
Stephen F. Rush officer: EVP and COO 2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
John Michael Custer director 2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
Brian E. Keeley director 2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
Steven Rubin director 2665 S. BAYSHORE DRIVE, SUITE 901, MIAMI FL 33133
Barry S Logan officer: Senior Vice President
Watsco Inc director 2665 SOUTH BAYSHORE DR, STE 901, COCONUT GROVE FL 33133
Jason Epstein director % COLUMBUS ACQUISITION CORP, 153 EAST 53RD STREET 58TH FLOOR, NEW YORK NY 10022
United Technologies Corp /de/ 10 percent owner 1000 WILSON BLVD, ARLINGTON VA 22209
David C. Darnell director 100 NORTH TRYON STREET, CHARLOTTE NC 28255
Paul F Manley director C/O GENTA INC., TWO VANWAY, BERKELEY HEIGHTS NJ 07922
Bob L Moss director
Denise Dickins director 1867 TRAVIS CIRCLE, WEST PALM BEACH FL 33406