Watsco Valuation Multiples

Watsco Overview

About Watsco

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.

Founded

1956

HQ

Employees

7.3K

Website

watsco.com

Sectors

Wholesale Distribution

Financials (LTM)

Revenue: $7B

EBITDA: $766M

EV

$16B

Valuation Multiples

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Watsco Financials

Watsco reported last 12-month revenue of $7B and EBITDA of $766M.

In the same LTM period, Watsco generated $2B in gross profit, $766M in EBITDA, and $468M in net income.

Watsco P&L

In the most recent fiscal year, Watsco reported revenue of $7B and EBITDA of $763M.

Watsco expects next 12-month revenue of XXX and NTM EBITDA of XXX

Watsco Stock Performance

Watsco has current market cap of $17B, and enterprise value of $16B.

Watsco's stock price is $407.89.

Watsco Valuation Multiples

Watsco trades at 2.2x EV/Revenue multiple, and 21.3x EV/EBITDA.

Watsco Financial Valuation Multiples

As of March 16, 2026, Watsco has market cap of $17B and EV of $16B.

Equity research analysts estimate Watsco's 2025E EV/Revenue multiple at XXX and 2025E EV/EBITDA multiple at XXX

Watsco has a P/E ratio of 35.4x.

Watsco Margins & Growth Rates

Watsco's revenue in the last 12 month grew by 3%.

Watsco's revenue per employee in the last FY averaged $1.0M.

Watsco's rule of 40 is 13% (metric relevant for SaaS companies only, counted as combined revenue growth rate and EBITDA margin).

Watsco's rule of X is 17% (created by Bessemer, rule of X is another metric to measure SaaS companies, ~1.5x stronger vs. the traditional Rule of 40, counted as revenue growth rate multiplied by 2.5 plus EBITDA margin).

Watsco Public Comps

See public comps and valuation multiples for other Wholesale Distribution comps.

Watsco M&A Activity

Watsco acquired XXX companies to date.

Last acquisition by Watsco was on XXXXXXXX, XXXXX. Watsco acquired XXXXXXXX for XXX (EV/Revenue multiple of XXX).

Watsco Investment Activity

Watsco invested in XXX companies to date.

Watsco made its latest investment on XXXXXXXX, XXXXX. Watsco invested in XXXXXXXX for XXX (EV/Revenue multiple of XXX).