As of today (2024-04-23), Watsco's share price is $424.75.
Watsco's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $14.33. Hence, Watsco's Price-to-Free-Cash-Flow Ratio for today is 29.65.
The historical rank and industry rank for Watsco's Price-to-Free-Cash-Flow or its related term are showing as below:
WSO.B'
s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 12.28 Med: 22.18 Max: 51.54
Current: 28.37
During the past 13 years, Watsco's highest Price-to-Free-Cash-Flow Ratio was 51.54. The lowest was 12.28. And the median was 22.18.
WSO.B's Price-to-Free-Cash-Flow is ranked worse than 82.14% of 112
companies
in the Industrial Distribution industry
Industry Median: 12.85
vs WSO.B: 28.37
During the past 12 months, the average Free Cash Flow per Share Growth Rate of Watsco was -4.10% per year.
During the past 3 years, the average Free Cash Flow per Share Growth Rate was -0.70% per year.
During the past 5 years, the average Free Cash Flow per Share Growth Rate was 21.70% per year.
During the past 10 years, the average Free Cash Flow per Share Growth Rate was 13.90% per year.
During the past 13 years, Watsco's highest 3-Year average Free Cash Flow per Share Growth Rate was 95.60% per year. The lowest was -259.90% per year. And the median was 8.35% per year.
Watsco Price-to-Free-Cash-Flow Historical Data
The historical data trend for Watsco's Price-to-Free-Cash-Flow 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 Price-to-Free-Cash-Flow, along with its competitors' market caps and Price-to-Free-Cash-Flow 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 Price-to-Free-Cash-Flow Distribution
For the Industrial Distribution industry and Industrials sector, Watsco's Price-to-Free-Cash-Flow distribution charts can be found below:
* The bar in red indicates where Watsco's Price-to-Free-Cash-Flow falls into.
Watsco Price-to-Free-Cash-Flow Calculation
Watsco's Price-to-Free-Cash-Flow ratio for today is calculated as
Watsco's Share Price of today is $424.75.
Watsco's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $14.33.
* 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.
It can also be calculated from the numbers for the whole company:
Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.
In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.
Be Aware
In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management's decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.
Watsco Price-to-Free-Cash-Flow Related Terms
Thank you for viewing the detailed overview of Watsco's Price-to-Free-Cash-Flow provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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