Watsco (Watsco) PEG Ratio

: 1.63 (As of Today)

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PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Watsco's PE Ratio without NRI is 31.09. Watsco's 5-Year EBITDA growth rate is 19.10%. Therefore, Watsco's PEG Ratio for today is 1.63.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.

The historical rank and industry rank for Watsco's PEG Ratio or its related term are showing as below:

WSO.B' s PEG Ratio Range Over the Past 10 Years
Min: 0.84 Med: 2.4 Max: 56.57
Current: 1.56

During the past 13 years, Watsco's highest PEG Ratio was 56.57. The lowest was 0.84. And the median was 2.40.

WSO.B's PEG Ratio is ranked worse than
64.29% of 84 companies
in the Industrial Distribution industry
Industry Median: 0.99 vs WSO.B: 1.56

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.

Watsco PEG Ratio Historical Data

The historical data trend for Watsco's PEG Ratio 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 Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

PEG Ratio

Get a 7-Day Free Trial

13.26

38.94

4.42

1.03

1.42

Watsco Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
PEG Ratio	Get a 7-Day Free Trial															1.03	1.18	1.36	1.25	1.42

Competitive Comparison

For the Industrial Distribution subindustry, Watsco's PEG Ratio, along with its competitors' market caps and PEG Ratio 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 PEG Ratio Distribution

For the Industrial Distribution industry and Industrials sector, Watsco's PEG Ratio distribution charts can be found below:

* The bar in red indicates where Watsco's PEG Ratio falls into.

Watsco PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Watsco's PEG Ratio for today is calculated as

PEG Ratio	=	PE Ratio without NRI	/	5-Year EBITDA Growth Rate*
	=	31.094436310395	/	19.10
	=	1.63

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.

Watsco (NYSE:WSO.B) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.

Watsco PEG Ratio Related Terms

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Watsco (Watsco) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Watsco Inc (NYSE:WSO.B) » Definitions » PEG Ratio

Comparable Companies

Traded in Other Exchanges

WSO:USA WC30:Germany WC3:Germany WC3:Germany

Address

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

Website

https://www.watsco.com

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.