Williams-Sonoma Inc (WSM) Fair Value & Analysis
Consumer Cyclical · US · Market cap $27.0B · ISIN US9699041011
What is Williams-Sonoma Inc really worth?
Williams-Sonoma Inc
WSM · US
A strong business, but trading 37% above our fair value of $162.63.
Strengths
Risks
For context
Fair value as of: Aug 31, 2026
From 24 valuation models · updated 5 days ago
Share price −10.5% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- A high-quality business (quality 78/100), 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 ($106.97 to $206.12) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 31, 2026.
How to read this chart
60‑month range $48.82 – $251.78 · fair‑value band $106.97 – $206.12 · the $222.76 price screens above the $162.63 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 31, 2026.
Analysis
Williams-Sonoma Inc (WSM) currently trades at $222.76, while our model-based Fair Value estimate is $162.63, implying the stock looks roughly 37.0% overvalued today. The Quality Score stands at 78/100 (high quality), in the Consumer Cyclical sector. Bull case: the Growth Earnings group reads highest at a median of $185.69 per share, and 1 of the 24 models we run sit above the $222.76 price. Bear case: the Earnings-Based group reads lowest at $71.27, and 23 of the 24 models stay below the price. Evidence for this calculation is 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 Aug 31, 2026
Our scenario range runs from $106.97 (bear case) to $206.12 (bull case); at $222.76, 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 49% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −11% fair-value upside, at −27%, WSM screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2026 figures, and about 7 months have passed since. In that time the company retained roughly $3.67 per share, which is 2.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.
All 24 models by family
Widest divergence: Growth Earnings ($185.69) versus Asset-Based ($11.85). Highest evidence: FCF DCF (79).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 31, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 76 · Market factors (momentum, volatility) 55
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.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
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.
of which total revenue +5.2 % · buybacks/dilution +4.2 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
WSM screens 37% overvalued. Compare with Alimentation Couche-Tard Inc →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Williams-Sonoma (WSM) Grew Comparable Brand Revenue While Non-GAAP Operating Margin Fell. Can Demand Restore Operating Leverage?
- Jim Cramer Says Williams-Sonoma (WSM) Selloff Was Wrong After Strong Earnings
- Williams-Sonoma Poised to Continue Strong Performance, UBS Says
Peer Group
Specialty Retail · 219 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.
Valuation Multiples vs Specialty Retail median · lower = cheaper
Strength profile in five axes (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: 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.
Similar stocks
10 more Specialty Retail stocks, each showing price versus our Fair Value estimate (as of Aug 31, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Alimentation Couche-Tard Inc ATD | C$89.93 | C$104.32 | +16% |
| Casey's General Stores, Inc CASY | $755.47 | $398.90 | −47% |
| Ulta Beauty, Inc ULTA | $537.10 | $475.40 | −11% |
| DICK'S Sporting Goods, Inc DKS | $202.66 | $181.10 | −11% |
| Best Buy Co BBY | $82.44 | $108.04 | +31% |
| China Tourism Group 601888 | ¥54.97 | ¥40.40 | −27% |
| Tractor Supply Company TSCO | $34.72 | $35.52 | +2% |
| Five Below, Inc FIVE | $259.41 | $117.29 | −55% |
| Murphy USA Inc MUSA | $574.12 | $423.35 | −26% |
| Taiwan Mobile Co 3045 | 116.00 TWD | 80.98 TWD | −30% |
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