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Watsco (Watsco) PEG Ratio

: 1.58 (As of Today)
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PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Watsco's PE Ratio without NRI is 30.19. Watsco's 5-Year EBITDA growth rate is 19.10%. Therefore, Watsco's PEG Ratio for today is 1.58.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for Watsco's PEG Ratio or its related term are showing as below:

WSO' s PEG Ratio Range Over the Past 10 Years
Min: 0.84   Med: 2.4   Max: 56.57
Current: 1.58


During the past 13 years, Watsco's highest PEG Ratio was 56.57. The lowest was 0.84. And the median was 2.40.


WSO's PEG Ratio is ranked worse than
65.48% of 84 companies
in the Industrial Distribution industry
Industry Median: 0.995 vs WSO: 1.58

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Watsco PEG Ratio Historical Data

The historical data trend for Watsco's PEG Ratio 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 Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PEG Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.26 38.94 4.42 1.03 1.42

Watsco Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PEG Ratio 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 Premium Member Only Premium Member Only Premium Member Only 1.03 1.18 1.36 1.25 1.42

Competitive Comparison

For the Industrial Distribution subindustry, Watsco's PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio Distribution

For the Industrial Distribution industry and Industrials sector, Watsco's PEG Ratio distribution charts can be found below:

* The bar in red indicates where Watsco's PEG Ratio falls into.



Watsco PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Watsco's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=30.192532942899/19.10
=1.58

* 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.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Watsco  (NYSE:WSO) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Watsco PEG Ratio Related Terms

Thank you for viewing the detailed overview of Watsco's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Watsco (Watsco) Business Description

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

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