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WatscoSTU:WC3 +0.89%84 EV-to-EBIT is 20.38 as of Aug. 19, 2026, which is 12% above its 10-year median of 18.19. GuruFocus rates STU:WC3 with a GF Score™ of 84/100 and a GF Value™ of €357.13 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 136 Industrial Distribution companies, Watsco ranks worse than 72.79% on this metric.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Watsco's Enterprise Value is €11,640 Mil.
Watsco's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was €571 Mil. Therefore, Watsco's EV-to-EBIT for today is 20.38.
The historical rank and industry rank for Watsco's EV-to-EBIT or its related term are showing as below:
STU:WC3'
s EV-to-EBIT Range Over the Past 10 Years
Min: 11.26 Med: 18.19 Max: 29.03
Current: 20.3
During the past 13 years, the highest EV-to-EBIT of Watsco was 29.03. The lowest was 11.26. And the median was 18.19.
STU:WC3's EV-to-EBIT is ranked worse than 72.79% of 136
companies
in the Industrial Distribution industry
Industry Median: 12.595
vs STU:WC3: 20.30
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Watsco's Enterprise Value for the quarter that ended in Jun. 2026 was €15,602 Mil.
Watsco's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €571 Mil.
* 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.
Watsco EV-to-EBIT Related Terms
Watsco EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for Watsco's EV-to-EBIT 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.
For the Industrial Distribution subindustry, Watsco's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Watsco's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Watsco's EV-to-EBIT falls into.
Watsco's current Enterprise Value is €11,640 Mil.
Watsco's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €571 Mil.
* 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.
Watsco (STU:WC3) has a EV-to-EBIT of 20.38 as of Aug. 19, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Watsco and its competitors. This is 12% above median its historical median of 18.19. Over the past decade, Watsco's EV-to-EBIT has ranged from 11.26 to 29.03. According to the industry distribution chart, Watsco ranks #99 out of 136 companies in the Industrial Distribution industry, placing it in the top 72.8%.
Is Watsco's EV-to-EBIT too high?
Watsco's current EV-to-EBIT of 20.38 is 12% above median its 10-year median of 18.19. Over the past 10 years, this metric has ranged from a low of 11.26 to a high of 29.03. The Industrial Distribution industry median EV-to-EBIT is 12.60. Watsco's value of 20.38 is 61.8% above this industry median. Based on the distribution chart, Watsco ranks #99 out of 136 companies in the Industrial Distribution industry, which is below the industry midpoint. Overall, Watsco has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Watsco's EV-to-EBIT compare to QXO and WCC?
According to the Industrial Distribution industry distribution chart, Watsco ranks #99 out of 136 companies for EV-to-EBIT. This places Watsco in the lower half of its industry. The industry median EV-to-EBIT is 12.60. Watsco's value of 20.38 is 61.8% above this benchmark. Historically, Watsco's own EV-to-EBIT has ranged from 11.26 to 29.03 over the past decade. While the company's 10-year median is 18.19 vs. the industry median of 12.60, Watsco has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for an Industrial Distribution company?
The median EV-to-EBIT among Industrial Distribution companies is 12.60, based on 136 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watsco's current EV-to-EBIT of 20.38 is 61.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Watsco and its competitors. For the Industrial Distribution industry, the median EV-to-EBIT is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watsco's current EV-to-EBIT is 20.38, which is 12% above median its own 10-year median of 18.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watsco stock overvalued right now?
Based on GuruFocus' analysis, Watsco (STU:WC3) is currently considered Modestly Undervalued. The stock's GF Value™ is €357.13, compared to a current price of €270.60 — trading 24.2% below its estimated fair value. The current EV-to-EBIT is 20.38, which is 12% above median its 10-year median of 18.19 and 61.8% above the Industrial Distribution industry median of 12.60. Watsco's overall GF Score™ is 84/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Watsco (STU:WC3), the current EV-to-EBIT is 20.38 as of Aug. 19, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Watsco (STU:WC3) Overvalued in 2026?
Based on GuruFocus' analysis, Watsco stock appears to be undervalued.
The current stock price of €270.60 is trading 24.2% below its estimated GF Value™ of €357.13.
GuruFocus considers Watsco to be Modestly Undervalued.
Key valuation signals for STU:WC3:
EV-to-EBIT: 20.38 (12% above median its 10-year median of 18.19)
GF Value™: €357.13 vs. price of €270.60 (24.2% below fair value)
Industry Position: 61.8% above the Industrial Distribution median (#99 of 136)
No single metric tells the full story. See the STU:WC3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Watsco is the largest HVAC and refrigeration products distributor in North America with approximately 13% market share. The company primarily operates in the United States (90% of revenue) with significant exposure in the Sunbelt states. Watsco also has operations in Canada, Latin America, and the Caribbean. The company's customer base comprises more than 120,000 dealers and contractors serving the replacement and new-construction HVAC/R markets for residential and light-commercial applications. As much as 20% of residential HVAC units are distributed through Watsco in any given year. Revenue is approximately 75%-80% residential HVAC and 20%-25% commercial, with relatively small exposure to more complex "applied" solutions.
84GF Score
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