Watsco

Watsco EV/EBIT

The EV/EBIT (Enterprise Value to EBIT) of Watsco (WSO) as of Nov 12, 2026 is 21.58. In the previous year, EV/EBIT (Enterprise Value to EBIT) was 19.12 — a change of 12.88% (higher).

EV/EBIT

21.58

YoY

12.88%

Last updated:

EV/EBIT (Enterprise Value to EBIT) of Watsco is 2025 21.58 . EV/EBIT (Enterprise Value to EBIT) of Watsco was 2024 19.12 . It decreases by 12.88% higher compared to the previous year.

The Watsco EV/EBIT history

  • 3 Years

  • 10 Years

  • 25 Years

  • Max

EV/EBIT
Date
EV/EBIT
Jan 1, 2019
40.73 USD
Jan 1, 2020
37.26 USD
Jan 1, 2021
23.78 USD
Jan 1, 2022
17.97 USD
Jan 1, 2023
18.80 USD
Jan 1, 2024
19.12 USD
Jan 1, 2025
21.58 USD
Jan 1, 2026 (e)
18.14 USD
The Watsco EV/EBIT history
YEAREV/EBITYoY
est18.14-15.93%
21.58+12.88%
19.12+1.67%
18.80+4.63%
17.97-24.42%
23.78-36.19%
37.26-8.52%
40.73+1.42%
40.16-4.89%
42.23-2.33%
43.24-2.57%
44.38-9.21%
48.88+297.38%
12.30+6.96%
11.50+5.31%
10.92-12.92%
12.54-31.66%
18.35+76.61%
10.39+13.93%
9.12-5.79%
9.68—

Access this data via the Eulerpool API

100,000 free requests/mo · no credit card

Watsco Valuation

Details

Historical Valuation Multiples

ⓘ

Price-to-Earnings Ratio (P/E)

The P/E ratio divides Watsco's share price by its earnings per share. It tells you how many years of current earnings you are "paying for" when you buy the stock. A P/E of 20 means you pay $20 for every $1 of annual earnings. The S&P 500 historically trades at an average P/E of roughly 15–17. A P/E significantly above that may signal high growth expectations; one below may indicate undervaluation — or declining business quality.

Price-to-Sales Ratio (P/S)

The P/S ratio divides market capitalization by total revenue. Unlike the P/E ratio, it works even for companies that are not yet profitable, making it essential for evaluating high-growth firms. A P/S below 1.0 may indicate undervaluation, while ratios above 10 are typically reserved for fast-growing tech or SaaS companies with high expected future margins.

Price-to-EBIT Ratio

This ratio relates Watsco's market price to its operating earnings, excluding the effects of debt structure and tax jurisdiction. It is particularly useful for comparing companies across different countries or with different levels of leverage, because it focuses purely on operational profitability. Lower values suggest cheaper operational earnings.

How to Use This Chart

This chart plots Watsco's valuation multiples over time. Compare the current P/E, P/S, and P/EBIT to their own historical averages — if the current ratio is well below the multi-year average, the stock may be relatively cheap compared to its own track record. Combine this with industry comparisons: a P/E that looks high in absolute terms may be justified if Watsco grows earnings faster than its peers.

Watsco Stock analysis

What does Watsco do? Watsco Inc is a leading US wholesaler of air conditioning and heating systems. The company was founded in 1956 and is headquartered in Miami, Florida. It has experienced rapid growth since its establishment and is now one of the largest companies in its industry. Its business model is focused on wholesale distribution, meaning that Watsco purchases air conditioning and heating systems from manufacturers at lower prices and resells them to dealers and installers. The company operates numerous sales offices and showrooms throughout North America to supply its customers with products. Its target market consists primarily of small and medium-sized installers and dealers. Watsco also works extensively with different innovative technologies, including an app that makes it easier for customers to order products and pay invoices. Watsco was founded in 1956 by two businessmen in South Florida. Starting as a small family business, it initially sold air conditioning units with a focus on wholesale distribution. Through family expansion and acquisitions of industry partners, the company experienced rapid growth, which has persisted to this day. Over the years, Watsco has continuously invested in technological advancements to better serve customers and improve company efficiency. The company is divided into several divisions, including air conditioning, heating, ventilation, refrigeration, and other miscellaneous products such as fasteners and roofing materials. Each division is further divided into different product lines, such as split systems, ductless systems, central heating systems, and accessories within the air conditioning division. Watsco offers a variety of HVAC products, including air conditioning units, heating systems, ventilation systems, and refrigeration systems. The product offering mainly consists of well-known brands such as Carrier, Trane, Lennox, and many more. The company focuses on providing innovative technology and design, as well as customized solutions, to help its customers meet their requirements more easily. In conclusion, Watsco has become an important and reputable wholesaler in the HVAC product industry. The company has a long history of growth and utilizes innovative technologies to better serve its customers. With its wide range of products and collaborations with renowned brands in the HVAC industry, Watsco has established itself as a leader in the field. Watsco is one of the most popular companies on Eulerpool.

Frequently Asked Questions about Watsco stock

EV/EBIT (Enterprise Value to EBIT) of Watsco is 21.58 in 2025.

EV/EBIT (Enterprise Value to EBIT) of Watsco changed from 19.12 to 21.58, representing a 12.88% change. The value is higher than the previous year.

On Eulerpool you can find the complete historical development of EV/EBIT (Enterprise Value to EBIT) Watsco since 2006 – with annual values, charts, and detailed analysis.

The EV/EBIT ratio measures a company's enterprise value relative to its operating earnings. It accounts for debt, making it useful for comparing companies with different capital structures.

EV/EBIT = Enterprise Value / Earnings Before Interest and Taxes

To evaluate EV/EBIT (Enterprise Value to EBIT)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for EV/EBIT (Enterprise Value to EBIT).

A 'good' varies by industry and company stage. On Eulerpool, you can compare EV/EBIT (Enterprise Value to EBIT)'s Watsco with sector peers and the industry average to assess whether it is attractive.

Access this data via the Eulerpool API

100,000 free requests/mo · no credit card

Valuation — Watsco

All Key Metrics — Watsco