Williams-Sonoma, Inc.

NYSE:WSM Stock Report

Market Cap: US$22.6b

Williams-Sonoma Valuation

Is WSM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of WSM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WSM ($183.68) is trading below our estimate of fair value ($242.69)

Significantly Below Fair Value: WSM is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WSM?

Key metric: As WSM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WSM. This is calculated by dividing WSM's market cap by their current earnings.
What is WSM's PE Ratio?
PE Ratio20.7x
EarningsUS$1.09b
Market CapUS$22.61b

Price to Earnings Ratio vs Peers

How does WSM's PE Ratio compare to its peers?

The above table shows the PE ratio for WSM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average38.3x
RH RH
106x53.8%US$7.4b
ARHS Arhaus
17.3x6.4%US$1.4b
BBY Best Buy
14.4x4.7%US$18.3b
DKS DICK'S Sporting Goods
15.3x3.7%US$17.8b
WSM Williams-Sonoma
20.7x1.2%US$22.6b

Price-To-Earnings vs Peers: WSM is good value based on its Price-To-Earnings Ratio (20.7x) compared to the peer average (38.3x).

Price to Earnings Ratio vs Industry

How does WSM's PE Ratio compare vs other companies in the US Specialty Retail Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TKLF Tokyo Lifestyle
2xn/aUS$13.93m
SSOK Sunstock
0.8xn/aUS$556.28k
MASN Maison Luxe
0.08xn/aUS$144.03k
EXPR.Q Express
0.000004xn/aUS$749.00
WSM 20.7xIndustry Avg. 16.6xNo. of Companies10PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WSM is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the US Specialty Retail industry average (16.6x).

Price to Earnings Ratio vs Fair Ratio

What is WSM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WSM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.7x
Fair PE Ratio18.6x

Price-To-Earnings vs Fair Ratio: WSM is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the estimated Fair Price-To-Earnings Ratio (18.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst WSM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$183.68
US$167.15
-9.0%
14.1%US$200.00US$123.00n/a20
Dec ’25US$172.02
US$166.40
-3.3%
13.7%US$195.00US$123.00n/a20
Nov ’25US$132.20
US$143.86
+8.8%
9.9%US$165.12US$116.00n/a20
Oct ’25US$151.04
US$143.00
-5.3%
9.5%US$165.00US$116.00n/a19
Sep ’25US$134.33
US$141.30
+5.2%
8.2%US$165.00US$116.00n/a19
Aug ’25US$144.94
US$149.88
+3.4%
10.4%US$175.00US$116.00n/a19
Jul ’25US$138.45
US$149.24
+7.8%
10.4%US$175.00US$116.00n/a19
Jun ’25US$146.61
US$147.87
+0.9%
10.6%US$175.00US$116.00n/a19
May ’25US$141.81
US$143.35
+1.1%
11.4%US$170.00US$110.00n/a20
Apr ’25US$157.47
US$142.85
-9.3%
11.2%US$170.00US$110.00n/a20
Mar ’25US$118.32
US$95.06
-19.7%
18.4%US$130.00US$70.00n/a20
Feb ’25US$98.49
US$90.86
-7.7%
16.3%US$120.00US$70.00n/a20
Jan ’25US$100.89
US$87.24
-13.5%
13.3%US$107.50US$70.00n/a20
Dec ’24US$97.93
US$85.56
-12.6%
11.4%US$102.50US$70.00US$172.0220
Nov ’24US$74.77
US$75.81
+1.4%
15.5%US$101.00US$55.00US$132.2020
Oct ’24US$77.70
US$73.21
-5.8%
14.8%US$101.00US$55.00US$151.0420
Sep ’24US$72.25
US$72.68
+0.6%
14.8%US$101.00US$55.00US$134.3320
Aug ’24US$69.23
US$64.55
-6.8%
20.7%US$104.50US$47.50US$144.9420
Jul ’24US$62.57
US$64.58
+3.2%
20.4%US$104.50US$47.50US$138.4520
Jun ’24US$56.97
US$63.91
+12.2%
20.6%US$104.50US$47.50US$146.6120
May ’24US$59.28
US$64.96
+9.6%
20.1%US$105.50US$49.00US$141.8120
Apr ’24US$60.83
US$65.09
+7.0%
20.0%US$105.50US$49.00US$157.4720
Mar ’24US$61.76
US$67.29
+9.0%
24.8%US$116.50US$49.00US$118.3219
Feb ’24US$69.73
US$66.53
-4.6%
25.2%US$116.50US$49.00US$98.4919
Jan ’24US$57.46
US$66.74
+16.1%
25.2%US$116.50US$49.00US$100.8919
Dec ’23US$58.36
US$67.16
+15.1%
24.6%US$116.50US$50.00US$97.9319

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 02:01
End of Day Share Price 2024/12/20 00:00
Earnings2024/10/27
Annual Earnings2024/01/28

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Williams-Sonoma, Inc. is covered by 60 analysts. 22 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Christopher GrajaArgus Research Company
Peter BenedictBaird
Ishan MajumdarBaptista Research