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Williams-Sonoma, Inc (WSM) Fair Value & Analysis

Consumer Cyclical · US · Market cap $27.0B

WS Williams-Sonoma, Inc logo Williams-Sonoma, Inc WSM · US
Price$246.89
Fair Value$164.16
Upside-33.5%
Quality74/100
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Healthy Growth
Solidly profitable · 13.8% net margin
Low debt · generates free cash flow
1.23% dividend yield
Mixed vs. peers (6/15)
Wide moat 74/100
Evidence: High Range $108.58 – $206.12 Share as image

Fair value as of: Jul 16, 2026

From 24 valuation models · updated 22 days ago

Share price +11.0% over the past month.

A solid business, but screening 34% overvalued on our models.

What matters now

  • A high-quality business (quality 74/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case ($206.12). The favourable scenario is already priced in.
  • A fairly wide model range ($108.58 to $206.12) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$248.88 $48.82 Fair Value $164.16 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $48.82 – $248.88 · fair‑value band $108.58 – $206.12 · the $246.89 price screens above the $164.16 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

Full chart & analysis →

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Analysis

Williams-Sonoma, Inc (WSM) currently trades at $246.89, while our model-based Fair Value estimate is $164.16, implying the stock looks roughly 33.5% overvalued today. We read business quality at 74/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Williams-Sonoma, Inc generated revenue of $7.9B at a net margin of 13.8%. Revenue grew 4.4% year over year. It earns a return on equity of 54.0%. Net debt stands at $437M. Fundamentals as of Jul 16, 2026

Our scenario range runs from $108.58 (bear case) to $206.12 (bull case); at $246.89, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 65% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -24% fair-value upside, at -34%, WSM screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $114.49 $169.74 $250.58 80
Residual Income $80.07 $131.55 $2,477 76
Rev-Margin DCF $113.59 $180.87 $260.26 74
All 24 models by family
DCF Models
FCF DCF $113.24 $176.84 $276.74 38
Owner Earnings $113.73 $177.64 $278.01 31
5Y Revenue Exit $113.59 $181.35 $269.02 39
5Y EBITDA Exit $124.89 $202.95 $295.35 41
5Y P/E Exit $126.23 $205.50 $290.25 38
10Y Revenue Exit $109.06 $171.49 $257.87 36
10Y EBITDA Exit $119.75 $186.66 $278.37 37
10Y P/E Exit $120.61 $188.45 $274.40 35
Earnings-Based
Graham-Dodd $62.86 $216.20 $290.26 54
Lynch FV $49.89 $71.27 $92.65 50
PEG = 1.0 $49.89 $71.27 $92.65 46
EPV $93.72 $107.89 $120.30 59
Multiples
P/E Multiple $138.66 $184.88 $231.10 63
P/S Multiple $117.86 $157.15 $196.43 58
P/B Multiple $39.80 $53.06 $66.33 55
EV/EBIT $170.98 $225.08 $279.19 53
EV/EBITDA $145.05 $190.52 $235.98 54
EV/Revenue $118.07 $164.97 $211.86 43
Asset-Based
NCAV (Graham) $8.84 $11.85 $17.69 50
Growth DCF
Growth DCF $114.49 $169.74 $250.58 80
Rev-Margin DCF $113.59 $180.87 $260.26 74
Economic Profit
Residual Income $80.07 $131.55 $2,477 76
ROIC Compounder $96.44 $114.22 $131.93 72
Growth Earnings
Growth-Adj P/E $119.53 $170.75 $221.98 68

Widest divergence: DCF Models ($181.35) versus Asset-Based ($11.85). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $7.9B
Revenue growth (YoY) +4.4%
Net margin 13.8%
Return on equity 54.0%
Free cash flow $1.1B FY2026
P/E ratio 25.7
More key figures
Operating margin 16.2%
EPS (TTM) $8.91
Dividend yield 1.2%
EPS growth (YoY) +4.3%
Net debt $437M FY2026

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 74/100

Of which business quality 76 · Market factors (momentum, volatility) 66

Profitability 92
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 82
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 40
Calm price path (market factor)
Momentum 72
Price trend over the last 3–12 months (market factor)
52W Momentum 85
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home the United States and internationally. The company provides cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks.

Full company description

Williams-Sonoma, Inc. operates as an omni-channel specialty retailer of various products for home the United States and internationally. The company provides cooking, dining, and entertaining products, such as cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks. It offers home furnishings, home decor products and accessories, bedding, lighting, rugs, table essentials, kids accessories, made-to-order lighting, hardware, personalized products, custom gifts, and vintage-inspired heirloom products. It offers its products under the Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham, and GreenRow brand names. The company markets its products through e-commerce websites, direct-mail catalogs, and retail stores. Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Williams-Sonoma, Inc reported revenue of $7.8B in FY2026 versus $8.2B in FY2022, a compound −1.4%/yr. Reported net income was $1.1B in FY2026, compounding −0.9%/yr from FY2022.

Growth Quality 74/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
$7.8B
Latest YoY
+1.2%
Avg. growth/yr (3Y)
−3.5%
Avg. growth/yr (5Y)
+2.9%
Avg. growth/yr (40Y)
+12.6%
Revenue −1.4%/yr
FY22 $8.2B
FY23 $8.7B
FY24 $7.8B
FY25 $7.7B
FY26 $7.8B
Net income −0.9%/yr
FY22 $1.1B
FY23 $1.1B
FY24 $950M
FY25 $1.1B
FY26 $1.1B

WSM screens 34% overvalued. Compare with Casey's General Stores, Inc →

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Cite: Fair Value Calculator (2026). "Williams-Sonoma, Inc Fair Value". https://www.fairvalue-calculator.com/stock/WSM

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Specialty Retail · 221 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 74 · Top 25%
Fair Value upside −34% · Below median
Return on equity (TTM) 54% · Top 25%
Return on assets 17% · Top 25%
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 16% · Top 25%
Revenue growth 4% · Below median
Dividend yield (TTM) 1.2% · Below median

Valuation Multiples vs Specialty Retail median · lower = cheaper

P/E (TTM) 25.7× · Pricier than median
P/B 12.95× · Pricier than 75% of peers
P/S (TTM) 3.42× · Pricier than 75% of peers
P/FCF 25.5× · Pricier than 75% of peers
EV/EBITDA 15.7× · Pricier than 75% of peers
PEG 2.85× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 33
FUTURE 22 · sector 24
PAST 100 · sector 27
HEALTH 100 · sector 94
DIVIDEND 25 · sector 51

VALUE 0: the price sits above our fair-value range.

Insider activity: 42/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Retail stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Casey's General Stores, Inc CASY $827.04 $405.44 -51%
Ulta Beauty, Inc ULTA $479.57 $488.39 +2%
DICK'S Sporting Goods, Inc DKS $208.89 $181.10 -13%
Best Buy Co BBY $83.98 $109.12 +30%
China Tourism Group 601888 ¥52.90 ¥40.40 -24%
Tractor Supply Company TSCO $31.01 $35.52 +15%
Murphy USA Inc MUSA $618.57 $423.35 -32%
Five Below, Inc FIVE $197.71 $117.29 -41%
Taiwan Mobile Co 3045 110.50 TWD 80.98 TWD -27%
GameStop Corp GME $21.68 $15.31 -29%

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Frequently asked questions

Is Williams-Sonoma, Inc (WSM) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of $164.16 versus a price of $246.89, about −34% (overvalued).
What is the fair value of WSM?
Our model-based fair value for Williams-Sonoma, Inc is $164.16 (as of Jul 16, 2026), built from audited fundamentals. The current price is $246.89.
What is the quality score of WSM?
Williams-Sonoma, Inc has a Quality Score of 74/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Williams-Sonoma, Inc (WSM)?
Williams-Sonoma, Inc reported trailing-twelve-month revenue of about $7.9B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of WSM?
The net profit margin of Williams-Sonoma, Inc is about 13.8%, meaning it keeps roughly 13.8% of revenue as net income. Based on the latest reported figures.
Does Williams-Sonoma, Inc pay a dividend?
Williams-Sonoma, Inc currently shows a dividend yield of about 1.32% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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