Watsco (STU:WC3) ROE % Adjusted to Book Value: 2.14% (As of Mar. 2026)

Watsco STU:WC3 -1.68% 83 ROE % Adjusted to Book Value is 2.14% as of Mar. 2026. GuruFocus rates STU:WC3 with a GF Score™ of 83/100 and a GF Value™ of €359.76 (Fairly Valued). The stock has 3 warning signs investors should review.

Watsco's ROE % for the quarter that ended in Mar. 2026 was 11.48%. Watsco's PB Ratio for the quarter that ended in Mar. 2026 was 5.36. Watsco's ROE % Adjusted to Book Value for the quarter that ended in Mar. 2026 was 2.14%.

Watsco ROE % Adjusted to Book Value Related Terms

Watsco ROE % Adjusted to Book Value Historical Data

* Premium members only.

The historical data trend for Watsco's ROE % Adjusted to Book 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.

Watsco ROE % Adjusted to Book Value Chart

Watsco Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROE % Adjusted to Book Value

Get a 7-Day Free Trial

3.81

6.82

3.44

3.07

3.47

Watsco Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROE % Adjusted to Book Value	Get a 7-Day Free Trial															1.54	4.14	4.05	2.06	2.14

STU:WC3 vs WCC, QXO, AIT: ROE % Adjusted to Book Value Comparison

For the Industrial Distribution subindustry, Watsco's ROE % Adjusted to Book Value, along with its competitors' market caps and ROE % Adjusted to Book 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 ROE % Adjusted to Book Value vs Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Watsco's ROE % Adjusted to Book Value distribution charts can be found below:

* The bar in red indicates where Watsco's ROE % Adjusted to Book Value falls into.

Save Embed

83GF Score

Watsco Inc STU:WC3

ROE % Adjusted to Book Value is just one metric. See GF Score™, valuation, warning signs, and more.

View Full Analysis

Watsco ROE % Adjusted to Book Value Calculation

Watsco's ROE % Adjusted to Book Value for the fiscal year that ended in Dec. 2025 is calculated as

ROE % Adjusted to Book Value	=	ROE %	/	PB Ratio
	=	17.28%	/	4.98
	=	3.47%

Watsco's ROE % Adjusted to Book Value for the quarter that ended in Mar. 2026 is calculated as

ROE % Adjusted to Book Value	=	ROE %	/	PB Ratio
	=	11.48%	/	5.36
	=	2.14%

Frequently Asked Questions Learn more about ROE % Adjusted to Book Value →

What does a ROE % Adjusted to Book Value of 2.14% mean?

Watsco (STU:WC3) has a ROE % Adjusted to Book Value of 2.14% as of Mar. 2026. Return on equity adjusted to book is the ratio of return on equity to price-book ratio. View historical data on Watsco and its competitors.

Is Watsco's ROE % Adjusted to Book Value too high?

Watsco's current ROE % Adjusted to Book Value is 2.14%. Overall, Watsco has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.

How does Watsco's ROE % Adjusted to Book Value compare to WCC and QXO?

Watsco's ROE % Adjusted to Book Value of 2.14% 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 ROE % Adjusted to Book Value for an Industrial Distribution company?

A good ROE % Adjusted to Book Value depends on the Industrial Distribution industry context. However, ROE % Adjusted to Book 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 ROE % Adjusted to Book Value mean?

A high ROE % Adjusted to Book Value can signal that a stock is expensive relative to its fundamentals. Return on equity adjusted to book is the ratio of return on equity to price-book ratio. View historical data on Watsco and its competitors. Watsco's current ROE % Adjusted to Book Value is 2.14%. 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 Fairly Valued. The stock's GF Value™ is €359.76, compared to a current price of €352.20 — trading 2.1% below its estimated fair value. The current ROE % Adjusted to Book Value is 2.14%. Watsco's overall GF Score™ is 83/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROE % Adjusted to Book Value calculated?

ROE % Adjusted to Book Value is calculated from a company's financial statements. For Watsco (STU:WC3), the current ROE % Adjusted to Book Value is 2.14% as of Mar. 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 €352.20 is trading 2.1% below its estimated GF Value™ of €359.76. GuruFocus considers Watsco to be Fairly Valued.

Key valuation signals for STU:WC3:

ROE % Adjusted to Book Value: 2.14%
GF Value™: €359.76 vs. price of €352.20 (2.1% below fair value)
GF Score™: 83/100 with 3 warning signs

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 Business Description

Industry Industrials Industrial Distribution

Comparable Companies WCC QXO AIT CNM POOL MSM XMTR SITE REZI DXPE GWW FAST FERG TSX:TIH LSE:DPLM OSTO:ADDT B TSX:FTT OSTO:INDT OSTO:BEIJ B ASX:REH

Other Exchanges WSO.B:USA WSO:USA W1SO34:Brazil

Address 2665 South Bayshore Drive, Suite 901, Miami, FL, USA, 33133

Website https://www.watsco.com

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.

83GF Score

Get the complete analysis for STU:WC3

ROE % Adjusted to Book Value is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€352.20

Price

€359.76

GF Value

View STU:WC3 Analysis

See ROE % Adjusted to Book Value data for all stocks →