Williams-Sonoma, Inc. (WSM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-66.7%

$86.72

vs $260.80 price

Levered DCF

$90.52

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

8.3

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	23.89×	22.95×	13.71×	7.82×	10.59×	14.23×	15.37×	13.28×
P/B	12.48×	12.05×	6.11×	5.18×	7.16×	5.87×	4.43×	3.84×
P/S	3.33×	3.35×	1.68×	1.02×	1.45×	1.43×	0.93×	0.78×
EV / EBITDA	15.69×	15.13×	8.73×	5.77×	7.49×	9.12×	10.2×	7.03×
Gross margin	46.2%	46.5%	42.6%	42.4%	44.0%	38.9%	36.3%	37.0%
Operating margin	18.1%	18.5%	16.1%	17.3%	17.6%	13.4%	7.9%	7.7%
Net margin	13.9%	14.6%	12.3%	13.0%	13.7%	10.0%	6.0%	5.9%
Current ratio	1.39×	1.44×	1.45×	1.24×	1.31×	1.34×	1.09×	1.58×
Debt / equity	0.7×	0.63×	0.65×	0.85×	0.77×	0.93×	1.31×	0.26×
Interest coverage	0×	0×	0×	0×	779.15×	56.11×	52.62×	65.01×
Dividend yield	1.2%	1.1%	1.8%	2.5%	1.6%	1.6%	2.8%	3.2%
Payout ratio	29.1%	24.9%	24.5%	19.3%	16.7%	23.2%	42.3%	42.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	52.3%	52.5%	44.6%	66.3%	67.7%	41.2%	28.8%	28.9%
Return on invested capital	28.8%	29.9%	25.6%	34.6%	36.7%	20.9%	12.2%	19.5%
Return on assets	20.1%	21.2%	18.0%	24.2%	24.3%	14.6%	8.8%	11.9%
Free cash flow yield	4.1%	4.4%	11.5%	7.9%	9.6%	11.4%	7.7%	8.9%
Earnings yield	4.2%	4.4%	7.3%	12.8%	9.4%	7.0%	6.5%	7.5%
Enterprise value	$26.4B	$25.9B	$13.1B	$9.9B	$12.4B	$10B	$6.7B	$4.4B
Net debt / EBITDA	0.26×	0.08×	0.09×	0.63×	0.26×	0.3×	1.82×	-0.06×
Cash conversion cycle (days)	78	66	58	74	56	49	63	68