Williams-Sonoma, Inc. (WSM) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
With a retail and direct-to-consumer presence, Williams-Sonoma is a player in the nearly $300 billion domestic home category and $450 billion international home market, focused on expanding its exp...
Williams-Sonoma, Inc. (WSM) currently trades at a P/E ratio of 27.07 (historical range: 6.63–27.27, median: 15.96), placing it at the 100th percentile — expensive relative to its history, P/S ratio of 3.77 (range: 0.87–3.80, 100th percentile — expensive relative to its history), EV/EBITDA of 22.92 (range: 6.54–23.09, 99th percentile).
Over the historical period (2021-09-14 to 2026-10-16), Williams-Sonoma, Inc.'s P/E ratio has expanded by 110% over the observed period (from an average of 9.9 to 20.7).
Williams-Sonoma, Inc. trades well above its own historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 27.07 | 15.96 | 100th | expensive relative to its history |
| P/S Ratio | 3.77 | 2.26 | 100th | expensive relative to its history |
| EV/EBITDA | 22.92 | 17.69 | 99th | expensive relative to its history |
| FCF Yield | 3.58% | 7.49% | 0th | expensive relative to its history |
Williams-Sonoma, Inc. (WSM) Valuation & P/E History
Williams-Sonoma, Inc. (WSM) is a US-listed stock operating in the Consumer Cyclical sector, specifically the Specialty Retail industry currently trading at $250.16 with a market capitalization of $29.5 billion. This page provides historical valuation analysis for WSM based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 27.07 is above the historical median of 15.96, placing WSM at the 100th percentile of its valuation range. The P/S ratio of 3.77 compares to a median of 2.26.
WSM Valuation Metrics & Historical Range
The valuation table above shows Williams-Sonoma, Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether WSM is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests WSM is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Williams-Sonoma, Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is WSM Overvalued or Undervalued?
Williams-Sonoma, Inc. trades well above its own historical valuation range across most metrics. The overall valuation percentile of 100 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive WSM is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full WSM analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.WSM trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.