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Watsco (XPAR:WSO) Cyclically Adjusted Price-to-FCF : (As of May. 19, 2024)


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What is Watsco Cyclically Adjusted Price-to-FCF?

Note: If the price history is too short, we do not calculate current Cyclically Adjusted Price-to-FCF for this stock. All the historical data is shown as the company's primary share's data instead.

Shiller PE for Stocks: The True Measure of Stock Valuation


Watsco Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Watsco's Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Chart

Watsco Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.61 32.91 38.60 26.31 40.15

Watsco Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial 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 33.24 38.95 36.63 40.15 39.14

Competitive Comparison of Watsco's Cyclically Adjusted Price-to-FCF

For the Industrial Distribution subindustry, Watsco's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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's Cyclically Adjusted Price-to-FCF Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Watsco's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Watsco's Cyclically Adjusted Price-to-FCF falls into.



Watsco Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Watsco's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Watsco's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=2.554/131.7762*131.7762
=2.554

Current CPI (Mar. 2024) = 131.7762.

Watsco Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 -2.142 100.560 -2.807
201409 2.480 100.428 3.254
201412 2.277 99.070 3.029
201503 -0.567 99.621 -0.750
201506 -1.889 100.684 -2.472
201509 4.244 100.392 5.571
201512 3.125 99.792 4.127
201603 0.996 100.470 1.306
201606 -0.071 101.688 -0.092
201609 2.553 101.861 3.303
201612 2.712 101.863 3.508
201703 0.800 102.862 1.025
201706 -0.138 103.349 -0.176
201709 3.590 104.136 4.543
201712 2.711 104.011 3.435
201803 -1.038 105.290 -1.299
201806 0.413 106.317 0.512
201809 2.072 106.507 2.564
201812 2.400 105.998 2.984
201903 1.225 107.251 1.505
201906 0.262 108.070 0.319
201909 3.201 108.329 3.894
201912 3.432 108.420 4.171
202003 0.976 108.902 1.181
202006 5.422 108.767 6.569
202009 2.600 109.815 3.120
202012 3.656 109.897 4.384
202103 -1.014 111.754 -1.196
202106 2.671 114.631 3.070
202109 5.595 115.734 6.371
202112 0.532 117.630 0.596
202203 -2.832 121.301 -3.077
202206 4.403 125.017 4.641
202209 7.972 125.227 8.389
202212 5.462 125.222 5.748
202303 -1.455 127.348 -1.506
202306 -1.311 128.729 -1.342
202309 9.113 129.860 9.248
202312 7.508 129.419 7.645
202403 2.554 131.776 2.554

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Watsco  (XPAR:WSO) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Watsco Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Watsco's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Watsco (XPAR:WSO) Business Description

Industry
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.

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