Williams-Sonoma, Inc. (WSM) is a publicly traded company in the Consumer Cyclical — Specialty Retail industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Williams-Sonoma, Inc. (WSM) functions as a specialized, multi-channel retailer offering a diverse array of products for the home. Its flagship Williams Sonoma brand is renowned for cooking, dining, and entertaining essentials, such as cookware, culinary tools, small appliances, flatware, dinnerware, barware, outdoor furnishings, and an extensive collection of cookbooks. This brand also provides home furnishings and decorative accents.
Is Williams-Sonoma, Inc. stock overvalued or undervalued in 2026?
Williams-Sonoma, Inc. (WSM) trades at 26.6× earnings (P/E), above the median of the 212 consumer cyclicals companies over $2bn in Kaplio's universe. At the decade median (17.5×) $171 (-34 %); at its sector median (18.4×) $179 (-31 %).
Kaplio overview: Williams-Sonoma, Inc.
Market cap $31B · 52 weeks $169 – $261 (3 % below the high) · P/E 26.6× · 2027 est. P/E 27.3× · Dividend 1.1 % · ≥ 11 years rising · Next earnings November 18, 2026 · expected EPS $2.18 · Closing price, Nov 2 · accounts published Aug 26.
- Valuation: TTM P/E 26.6× (expensive).
- Business: 5-year ROIC 31.1 % (excellent).
- Balance sheet: Net debt/EBITDA 0.3× (solid).
- Earnings: 8 of 8 (on track).
What would it be worth at its usual multiples?
At the decade median (17.5×) $171 (-34 %); at its sector median (18.4×) $179 (-31 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in consumer cyclicals: 4 of 7 pass
- Inventory turnover 2.9×, fails.
- EV/Sales vs history 3.4×, fails.
- Current Ratio 1.45, borderline.
- 5y avg operating margin 17.5 %, passes.
- 5y avg ROIC 31.1 %, passes.
- Net debt / EBITDA 0.3×, passes.
- Altman Z-Score 7.5, passes.
- P/E read in reverse (cyclicals) 26.6×, info.
Against its peers (reference peers) — Williams-Sonoma, Inc.: P/E 26.6×; EV/EBITDA 15.3×; ROIC 30.1 %; $30.6B. Wayfair Inc. (P/E —; EV/EBITDA 168×; ROIC 31.6 %; $15.5B), Rh (P/E 26.1×; EV/EBITDA 13.3×; ROIC 6.0 %; $2.8B), Bob's Discount Furniture, Inc. (P/E 16.9×; EV/EBITDA 10.6×; ROIC 11.0 %; $2.3B).
Expensive or cheap against its last ten years?
P/E at each close: today 26.6× · median 17.5× · minimum 6.8× · maximum 40.2× · cheap below 14.6× · expensive above 21.1×. It has been cheaper than today 96% of the time over its last ten years.
Dividend
solid · Yield 1.1 % ($2.61 per share in 2025) · Years raising it ≥ 11 · 5-year growth +21 % a year · Free cash flow coverage 4.4× · With $1,000 invested today you'd collect $11.30 a year ($0.94 a month).
Kaplio's reading: Williams-Sonoma, Inc.
Updated on October 15, 2026 · accounts published on August 26, 2026
A highly profitable business with margins well above its history
Williams-Sonoma trades at a P/E of 26.6, 52 % above its ten-year median, with a 19.2 % operating margin and net debt of only 0.3× EBITDA.
- Is Williams-Sonoma expensive or cheap? At a P/E of 26.6, Williams-Sonoma trades 52 % above its ten-year median, higher than in 96 % of the past decade.
- How is the business doing? Operating margin is 19.2 % over the last 12 months, well above its 2014-2025 average of 12.9 %, but revenue grew just 1.2 %.
- How strong is the balance sheet? Net debt is $3.60 per share in fiscal 2025, 1.4 % of the share price, and the dividend has risen 11 years in a row.
- Could the balance sheet withstand a recession? Net debt is 0.3× EBITDA in fiscal 2025, far below the 3.0× limit for cyclicals; inventory and liquidity are the weak points.
- What to expect from the next earnings? Williams-Sonoma reports on November 18, 2026; analysts expect EPS of $2.18 after 8 beats in the last 8 quarters.
Is Williams-Sonoma expensive or cheap?
Over the last 12 months Williams-Sonoma trades at a P/E of 26.6. Its ten-year median is 17.5, and the sector median across 212 companies is 18.4, so the stock carries a 45 % premium to its peers. Over the decade the P/E has ranged from 6.9 to 40.2, and it was lower than today 96 % of the time. EV/sales of 3.4× in fiscal 2025 is about double its ten-year average of 1.6×. The shares are up 28 % in 12 months and sit 3 % below their 52-week high of $260.87, so the market is paying for margins to stay where they are.
How is the business doing?
Williams-Sonoma earns a 19.2 % operating margin over the last 12 months. That is up from 18.1 % in fiscal 2025 and far above the 12.9 % it averaged from 2014 to 2025. Returns are exceptional: ROIC of 30.1 % is 20.9 points above the sector median of 9.2 % across 329 companies, and ROIC has stayed above 10 % in each of the last ten fiscal years. Growth is the weak spot. Over the last 12 months revenue rose 1.2 % and EPS 0.6 %, so today's earnings come from wider margins, with little help from higher sales.
How strong is the balance sheet?
Debt is a minor issue for Williams-Sonoma. Net debt of $3.60 per share in fiscal 2025 ($12.00 of debt against $8.40 of cash) is 1.4 % of the current price. The Altman Z of 7.5 over the last 12 months sits well inside the safe zone. Debt to equity of 0.71 and a P/B of 14.3× point to a small equity base, which also lifts ROE to 58 %. Shareholders get a 1.1 % dividend yield, raised for 11 consecutive fiscal years, and the payout of 29 % of fiscal 2025 earnings leaves plenty of room for further increases.
Could the balance sheet withstand a recession?
In consumer cyclicals, sales can drop sharply in a downturn, so the useful test is whether margins, returns and debt hold up across the cycle. Williams-Sonoma passes most of it. Its five-year average operating margin is 17.5 % (healthy from 8 %), its five-year average ROIC is 31.1 % (healthy from 12 %), and net debt was 0.3× EBITDA in fiscal 2025. Two gauges lag. Inventory turned 2.9× in fiscal 2025, below the 4.0× benchmark and its own five-year average of 3.3×. The current ratio of 1.45 sits just under 1.5. A P/E of 26.6 against a five-year average of 15.9 is the cyclical trap Peter Lynch warned about.
What to expect from the next earnings?
On August 26, 2026, Williams-Sonoma reported EPS of $2.10 against $2.08 expected, a 1.0 % beat and its eighth in eight quarters. For the quarter due on November 18, 2026, analysts expect $2.18. Expectations have been stable: over the last 30 days the 2027 EPS consensus held at $9.51 across 12 analysts, and revenue forecasts barely moved. Of the 56 analysts covering the company, 18 rate it a buy, 32 a hold and 6 a sell. That is a cautious mix for a stock on a premium multiple. Recent beats have been narrow, so a miss would likely weigh more than another small win.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Buffett approve Williams-Sonoma today?
The Buffett Method would wait for a better price for Williams-Sonoma: it yields 4.4% before tax; it asks for 10%. Business quality: 92 out of 100 (price not included). Kaplio assessment with data from the week of November 2, 2026; not investment advice.
Would Peter Lynch approve Williams-Sonoma today?
The Lynch Method would wait for a better price for Williams-Sonoma: P/E 26.6 with 15% growth; it asks that the P/E not exceed growth. Business quality: 82 out of 100 (price not included). Lynch classifies it as a stalwart. Kaplio assessment with data from the week of November 2, 2026; not investment advice.
Profitability
| Return on Equity | 57.79% |
| Return on Invested Capital | 30.09% |
| Return on Assets | 21.41% |
| Gross Margin | 47.19% |
| Operating Margin | 19.21% |
| Net Margin | 14.73% |
Financial Health
| Debt / Equity | 0.71 |
| Current Ratio | 1.45 |
| Piotroski F-Score | 5 |
| Altman Z-Score | 7.55 |
Price Performance
| 1 month | +8.79% |
| 3 months | +1.80% |
| Year-to-date | +41.51% |
| 1 year | +31.20% |
| 3 years | +227.53% |
| 5 years | +143.73% |
| 10 years | +962.74% |
Dividend History
Paid in the last 12 months: $2.94 per share in 4 payments.
| Date | Amount |
|---|---|
| October 16, 2026 | $0.76 |
| July 17, 2026 | $0.76 |
| April 17, 2026 | $0.76 |
| January 16, 2026 | $0.66 |
| October 17, 2025 | $0.66 |
| July 18, 2025 | $0.66 |
| April 17, 2025 | $0.66 |
| January 17, 2025 | $0.57 |
| October 18, 2024 | $0.57 |
| July 19, 2024 | $0.57 |
Amounts adjusted for stock splits.
Related companies: W · RH · HNI · BOBS
Explore sector: Consumer Cyclical · Specialty Retail
More sections of WSM: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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