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Watsco Inc (NYSE:WSO)
EV/EBITDA
15.68 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Watsco Inc's enterprise value is $5,566 Mil. Watsco Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2016 was $355 Mil. Therefore, Watsco Inc's EV/EBITDA ratio for today is 15.68.

WSO' s EV/EBITDA Range Over the Past 10 Years
Min: 7.8   Max: 23.1
Current: 15.69

7.8
23.1

During the past 13 years, the highest EV/EBITDA Ratio of Watsco Inc was 23.10. The lowest was 7.80. And the median was 12.30.

WSO's EV/EBITDA is ranked lower than
66% of the 1851 Companies
in the Global Electronics Distribution industry.

( Industry Median: 9.94 vs. WSO: 15.69 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Watsco Inc's stock price is $144.04. Watsco Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2016 was $4.94. Therefore, Watsco Inc's P/E Ratio for today is 29.16.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Watsco Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=5566.113/354.904
=15.68

Watsco Inc's current Enterprise Value is $5,566 Mil.
Watsco Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2016 was 129.647 (Jun. 2015 ) + 115.487 (Sep. 2015 ) + 59.102 (Dec. 2015 ) + 50.668 (Mar. 2016 ) = $355 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Watsco Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=144.04/4.94
=29.16

Watsco Inc's share price for today is $144.04.
Watsco Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2016 was 1.85 (Jun. 2015 ) + 1.64 (Sep. 2015 ) + 0.74 (Dec. 2015 ) + 0.71 (Mar. 2016 ) = $4.94.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Watsco Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 9.349.1310.0918.8211.8811.2512.8815.3913.2115.00

Watsco Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ev2ebitda 13.5013.9611.5813.2114.8414.4813.3615.0014.700.00
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