Williams-Sonoma Inc (WSM) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Williams-Sonoma Inc stock (WSM) is currently trading at $181.93. Williams-Sonoma Inc PE ratio is 20.49. Williams-Sonoma Inc PS ratio (Price-to-Sales) is 2.75. Analyst consensus price target for WSM is $205.05. WallStSmart rates WSM as Underperform.
- WSM PE ratio analysis and historical PE chart
- WSM PS ratio (Price-to-Sales) history and trend
- WSM intrinsic value — DCF, Graham Number, EPV models
- WSM stock price prediction 2025 2026 2027 2028 2029 2030
- WSM fair value vs current price
- WSM insider transactions and insider buying
- Is WSM undervalued or overvalued?
- Williams-Sonoma Inc financial analysis — revenue, earnings, cash flow
- WSM Piotroski F-Score and Altman Z-Score
- WSM analyst price target and Smart Rating
Williams-Sonoma Inc
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WSM Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Williams-Sonoma Inc (WSM)
WSM trades 255% above its Graham fair value of $60.11, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Williams-Sonoma Inc (WSM) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, return on equity, operating margin. Concerns around price/book and revenue growth. Fundamentals are solid but monitor weak areas for improvement.
Williams-Sonoma Inc (WSM) Key Strengths (4)
Every $100 of shareholder equity generates $52 in profit
98.08% of shares held by major funds and institutions
Large-cap company with substantial market presence
Strong operational efficiency: $20 kept per $100 revenue
Supporting Valuation Data
Williams-Sonoma Inc (WSM) Areas to Watch (6)
Revenue declining -4.30%, a shrinking business
Earnings declining -1.10%, profits shrinking
Very expensive at 10.3x book value
Paying a premium for growth, expensive relative to earnings expansion
Revenue is fairly priced at 2.75x sales
Decent profitability, keeps $14 per $100 revenue
Williams-Sonoma Inc (WSM) Detailed Analysis Report
Overall Assessment
This company scores 52/100 in our Smart Analysis, earning a C- grade. Out of 10 metrics analyzed, 4 register as strengths (avg 9.3/10) while 6 fall into concern territory (avg 3.0/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Return on Equity, Institutional Own., Market Cap. Profitability is solid with Return on Equity at 51.50%, Operating Margin at 20.30%.
The Bear Case
The primary concerns are Revenue Growth, EPS Growth, Price/Book. Some valuation metrics including PEG Ratio (2.27), Price/Sales (2.75), Price/Book (10.30) suggest expensive pricing. Growth concerns include Revenue Growth at -4.30%, EPS Growth at -1.10%, which may limit upside. Profitability pressure is visible in Profit Margin at 13.90%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 51.50% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at -4.30% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Return on Equity, Institutional Own.) and negatives (Revenue Growth, EPS Growth). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
WSM Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
WSM's Price-to-Sales ratio of 2.75x trades 112% above its historical average of 1.3x (98th percentile), historically expensive. The current valuation is 11% below its historical high of 3.1x set in Mar 2026, and 1212% above its historical low of 0.21x in Nov 2008. Over the past 12 months, the PS ratio has compressed from ~3.1x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Williams-Sonoma Inc (WSM) · CONSUMER CYCLICAL › SPECIALTY RETAIL
The Big Picture
Williams-Sonoma Inc faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 7.8B with 430% decline year-over-year. Profit margins of 13.9% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 5150.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 517M in free cash flow and 598M in operating cash flow. Earnings are translating into actual cash generation.
Revenue contracted 430% YoY. Worth determining whether this is cyclical or structural.
What to Watch Next
Margin expansion: can Williams-Sonoma Inc push profit margins above 15% as the business scales?
Volatility is elevated with a beta of 1.56, so expect amplified moves relative to the broader market.
Sector dynamics: monitor SPECIALTY RETAIL industry trends, competitive moves, and regulatory changes that could impact Williams-Sonoma Inc.
Bottom Line
Williams-Sonoma Inc faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(22 last 3 months)
| Insider | Type | Shares |
|---|---|---|
YEAROUT, KARALYN EVP CHIEF TALENT OFFICER | Sell | -767 |
Data sourced from SEC Form 4 filings
Last updated: 8:25:18 AM
About Williams-Sonoma Inc(WSM)
NYSE
CONSUMER CYCLICAL
SPECIALTY RETAIL
USA
Williams-Sonoma, Inc. is an omnichannel specialty retailer of various home products. The company is headquartered in San Francisco, California.