WSM Relative Valuation
WSM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, WSM is overvalued; if below, it's undervalued.
Historical Valuation
Williams-Sonoma Inc (WSM) is now in the Overvalued zone, suggesting that its current forward PE ratio of 22.03 is considered Overvalued compared with the five-year average of 13.76. The fair price of Williams-Sonoma Inc (WSM) is between 105.50 to 175.87 according to relative valuation methord. Compared to the current price of 196.95 USD , Williams-Sonoma Inc is Overvalued By 11.99%.
Relative Value
Fair Zone
105.50-175.87
Current Price：196.95
11.99%
Overvalued
22.03
PE
1Y
3Y
5Y
Trailing
Forward
14.50
EV/EBITDA
Williams-Sonoma Inc. (WSM) has a current EV/EBITDA of 14.50. The 5-year average EV/EBITDA is 9.36. The thresholds are as follows: Strongly Undervalued below 3.51, Undervalued between 3.51 and 6.44, Fairly Valued between 12.29 and 6.44, Overvalued between 12.29 and 15.22, and Strongly Overvalued above 15.22. The current Forward EV/EBITDA of 14.50 falls within the Overvalued range.
16.87
EV/EBIT
Williams-Sonoma Inc. (WSM) has a current EV/EBIT of 16.87. The 5-year average EV/EBIT is 10.87. The thresholds are as follows: Strongly Undervalued below 3.92, Undervalued between 3.92 and 7.39, Fairly Valued between 14.35 and 7.39, Overvalued between 14.35 and 17.83, and Strongly Overvalued above 17.83. The current Forward EV/EBIT of 16.87 falls within the Overvalued range.
191.87
PS
Williams-Sonoma Inc. (WSM) has a current PS of 191.87. The 5-year average PS is 2.83. The thresholds are as follows: Strongly Undervalued below -26.35, Undervalued between -26.35 and -11.76, Fairly Valued between 17.42 and -11.76, Overvalued between 17.42 and 32.01, and Strongly Overvalued above 32.01. The current Forward PS of 191.87 falls within the Strongly Overvalued range.
16.66
P/OCF
Williams-Sonoma Inc. (WSM) has a current P/OCF of 16.66. The 5-year average P/OCF is 10.33. The thresholds are as follows: Strongly Undervalued below 2.89, Undervalued between 2.89 and 6.61, Fairly Valued between 14.05 and 6.61, Overvalued between 14.05 and 17.77, and Strongly Overvalued above 17.77. The current Forward P/OCF of 16.66 falls within the Overvalued range.
23.56
P/FCF
Williams-Sonoma Inc. (WSM) has a current P/FCF of 23.56. The 5-year average P/FCF is 13.49. The thresholds are as follows: Strongly Undervalued below 3.34, Undervalued between 3.34 and 8.41, Fairly Valued between 18.56 and 8.41, Overvalued between 18.56 and 23.64, and Strongly Overvalued above 23.64. The current Forward P/FCF of 23.56 falls within the Overvalued range.
Williams-Sonoma Inc (WSM) has a current Price-to-Book (P/B) ratio of 10.87. Compared to its 3-year average P/B ratio of 8.00 , the current P/B ratio is approximately 35.85% higher. Relative to its 5-year average P/B ratio of 7.75, the current P/B ratio is about 40.31% higher. Williams-Sonoma Inc (WSM) has a Forward Free Cash Flow (FCF) yield of approximately 4.40%. Compared to its 3-year average FCF yield of 7.97%, the current FCF yield is approximately -44.80% lower. Relative to its 5-year average FCF yield of 9.07% , the current FCF yield is about -51.52% lower.
10.87
P/B
Median3y
8.00
Median5y
7.75
4.40
FCF Yield
Median3y
7.97
Median5y
9.07
Competitors Valuation Multiple
The average P/S ratio for WSM's competitors is 256.45, providing a benchmark for relative valuation. Williams-Sonoma Inc Corp (WSM) exhibits a P/S ratio of 191.87, which is -25.18% above the industry average. Given its robust revenue growth of 2.71%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of WSM increased by 14.49% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 12.13 to 13.48.
The secondary factor is the Revenue Growth, contributed 2.71%to the performance.
Overall, the performance of WSM in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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