Is Watsco (WSO) Still Cheap After Its Granite Group Deal?

Watsco has delivered a 5 year share price gain that rewards patient holders, which now puts the spotlight on whether the current US$322.98 price is well supported by the cash the business is expected to generate. With fresh acquisition news reshaping the footprint of its plumbing and HVAC distribution operations, the key issue is how those moves feed into the stock’s intrinsic value based on its cash flows. Over the past 5 years Watsco has produced a 29.1% total return, so a lot of investor...