Watsco Inc Stock Market Value
| WSO Stock | USD 412.43 5.28 1.26% |
| Symbol | Watsco |
Watsco Inc Price To Book Ratio
Is Watsco's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Watsco. If investors know Watsco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Watsco listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.41) | Dividend Share 9.8 | Earnings Share 13.65 | Revenue Per Share 200.07 | Quarterly Revenue Growth 0.014 |
The market value of Watsco Inc is measured differently than its book value, which is the value of Watsco that is recorded on the company's balance sheet. Investors also form their own opinion of Watsco's value that differs from its market value or its book value, called intrinsic value, which is Watsco's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Watsco's market value can be influenced by many factors that don't directly affect Watsco's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Watsco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Watsco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Watsco's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Watsco 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Watsco's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Watsco.
| 04/27/2022 |
| 04/16/2024 |
If you would invest 0.00 in Watsco on April 27, 2022 and sell it all today you would earn a total of 0.00 from holding Watsco Inc or generate 0.0% return on investment in Watsco over 720 days. Watsco is related to or competes with Quanex Building, Gibraltar Industries, Armstrong World, Janus International, Apogee Enterprises, Azek, and Interface. Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, refrigeration equipment, and relate... More
Watsco Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Watsco's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Watsco Inc upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.13 | |||
| Information Ratio | (0.01) | |||
| Maximum Drawdown | 8.81 | |||
| Value At Risk | (2.84) | |||
| Potential Upside | 2.48 |
Watsco Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Watsco's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Watsco's standard deviation. In reality, there are many statistical measures that can use Watsco historical prices to predict the future Watsco's volatility.| Risk Adjusted Performance | 0.0202 | |||
| Jensen Alpha | (0.06) | |||
| Total Risk Alpha | (0.12) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.017 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Watsco's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Watsco Inc Backtested Returns
We consider Watsco very steady. Watsco Inc shows Sharpe Ratio of 0.0583, which attests that the company had a 0.0583% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for Watsco Inc, which you can use to evaluate the volatility of the company. Please check out Watsco's Market Risk Adjusted Performance of 0.027, downside deviation of 2.13, and Mean Deviation of 1.39 to validate if the risk estimate we provide is consistent with the expected return of 0.11%. Watsco has a performance score of 4 on a scale of 0 to 100. The firm maintains a market beta of 1.72, which attests to a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Watsco will likely underperform. Watsco Inc right now maintains a risk of 1.8%. Please check out Watsco Inc sortino ratio, semi variance, as well as the relationship between the Semi Variance and rate of daily change , to decide if Watsco Inc will be following its historical returns.
Auto-correlation | 0.50 |
Modest predictability
Watsco Inc has modest predictability. Overlapping area represents the amount of predictability between Watsco time series from 27th of April 2022 to 22nd of April 2023 and 22nd of April 2023 to 16th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Watsco Inc price movement. The serial correlation of 0.5 indicates that about 50.0% of current Watsco price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.5 | |
| Spearman Rank Test | 0.58 | |
| Residual Average | 0.0 | |
| Price Variance | 938.28 |
Watsco Inc lagged returns against current returns
Autocorrelation, which is Watsco stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Watsco's stock expected returns. We can calculate the autocorrelation of Watsco returns to help us make a trade decision. For example, suppose you find that Watsco has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Watsco regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Watsco stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Watsco stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Watsco stock over time.
Current vs Lagged Prices |
| Timeline |
Watsco Lagged Returns
When evaluating Watsco's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Watsco stock have on its future price. Watsco autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Watsco autocorrelation shows the relationship between Watsco stock current value and its past values and can show if there is a momentum factor associated with investing in Watsco Inc.
Regressed Prices |
| Timeline |
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Check out Watsco Correlation, Watsco Volatility and Watsco Alpha and Beta module to complement your research on Watsco. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Complementary Tools for Watsco Stock analysis
When running Watsco's price analysis, check to measure Watsco's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Watsco is operating at the current time. Most of Watsco's value examination focuses on studying past and present price action to predict the probability of Watsco's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Watsco's price. Additionally, you may evaluate how the addition of Watsco to your portfolios can decrease your overall portfolio volatility.
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Watsco technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.