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Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Watsco's Enterprise Value is €13,578 Mil.
Watsco's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was €600 Mil. Therefore, Watsco's EV-to-EBIT ratio for today is 22.63.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Watsco's Enterprise Value is €13,578 Mil.
Watsco's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was €638 Mil. Therefore, Watsco's EV-to-EBITDA ratio for today is 21.29.
EV-to-Revenue is calculated as Enterprise Value divided by its Revenue. As of today, Watsco's Enterprise Value is €13,578 Mil.
Watsco's Revenue for the trailing twelve months (TTM) ended in Mar. 2026 was €6,224 Mil. Therefore, Watsco's EV-to-Revenue ratio for today is 2.18.
EV-to-FCF is calculated as Enterprise Value divided by its Free Cash Flow. As of today, Watsco's Enterprise Value is €13,578 Mil.
Watsco's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was €592 Mil. Therefore, Watsco's EV-to-FCF ratio for today is 22.94.
*** Please note that the current Enterprise Value is calculated using the current market capitalization and the most recently available financial data. If key financial fields—Long-Term Debt & Capital Lease Obligation and Short-Term Debt & Capital Lease Obligation—are recorded as null in the latest reporting period, our data vendor will default to using data from the prior period with valid entries.
Watsco (FRA:WC3) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Watsco's current Enterprise Value is €13,578 Mil.
Watsco's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €600 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Watsco's current Enterprise Value is €13,578 Mil.
Watsco's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €638 Mil.
Watsco's current Enterprise Value is €13,578 Mil.
Watsco's Revenue for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €6,224 Mil.
Watsco's current Enterprise Value is €13,578 Mil.
Watsco's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €621 Mil.
Watsco's current Enterprise Value is €13,578 Mil.
Watsco's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €592 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 Enterprise Value Related Terms
Watsco Enterprise Value Historical Data
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The historical data trend for Watsco's Enterprise Value 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.
FRA:WC3 vs QXO, WCC, AIT: Enterprise Value Comparison
For the Industrial Distribution subindustry, Watsco's Enterprise Value, along with its competitors' market caps and Enterprise Value 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 Enterprise Value vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Watsco's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Watsco's Enterprise Value falls into.
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Watsco's Enterprise Value for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (FRA:WC3) has a Enterprise Value of €13,578 Mil as of Jul. 28, 2026. Enterprise value equals the sum of market cap, debt and preferred shares less cash and equivalents. View historical data on Watsco and its competitors.
Is Watsco's Enterprise Value too high?
Watsco's current Enterprise Value is €13,578 Mil. Overall, Watsco has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Watsco's Enterprise Value compare to QXO and WCC?
Watsco's Enterprise Value of €13,578 Mil can be compared against companies in the Industrial Distribution industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Enterprise Value for an Industrial Distribution company?
A good Enterprise Value depends on the Industrial Distribution industry context. However, Enterprise Value should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Enterprise Value mean?
A high Enterprise Value can signal that a stock is expensive relative to its fundamentals. Enterprise value equals the sum of market cap, debt and preferred shares less cash and equivalents. View historical data on Watsco and its competitors. Watsco's current Enterprise Value is €13,578 Mil. 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 (FRA:WC3) is currently considered Modestly Undervalued. The stock's GF Value™ is €359.71, compared to a current price of €315.20 — trading 12.4% below its estimated fair value. The current Enterprise Value is €13,578 Mil. Watsco's overall GF Score™ is 86/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Enterprise Value calculated?
Enterprise Value is calculated from a company's financial statements. For Watsco (FRA:WC3), the current Enterprise Value is €13,578 Mil as of Jul. 28, 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 (FRA:WC3) Overvalued in 2026?
Based on GuruFocus' analysis, Watsco stock appears to be undervalued.
The current stock price of €315.20 is trading 12.4% below its estimated GF Value™ of €359.71.
GuruFocus considers Watsco to be Modestly Undervalued.
Key valuation signals for FRA:WC3:
Enterprise Value: €13,578 Mil
GF Value™: €359.71 vs. price of €315.20 (12.4% below fair value)
No single metric tells the full story. See the FRA: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.
86GF Score
Get the complete analysis for FRA:WC3
Enterprise Value is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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