3 models fit Williams-Sonoma Inc. Common Stock (DE) and they disagree: 1 of 3 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)Silver69
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionWilliams-Sonoma Inc. Common Stock (DE) (WSM)
Fair value (3 models)
$144
ACCE price target
$234
Rating
Overvalued
Horizon
12 months
Fair value published on 20 Oct 2026, 16:04 CEST; previously $148 since 16 Oct 2026, 00:00 CEST.
ACCE price target published on 18 Oct 2026, 01:52 CEST; previously $232 since 24 Sept 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 16:04 CEST.
Price used: $252 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
74.9% above
-42.8% to fair value
ACCE score
74
out of 100
Analysts
48% buy
23 covering
P/E
25.9x
forward 24.0x
1-year return
+34.3%
Dividend yield
1.17%
Williams-Sonoma Inc. Common Stock (DE) in four questions
Plain answers, details below
Free accounts get 5 full stock pages a month, including the four answers.
Overview
ACCE thesis
Williams-Sonoma sells premium home furnishings and kitchenware through its Pottery Barn, West Elm, Williams Sonoma, Rejuvenation and Mark and Graham banners, with a large direct-to-consumer business supported by its own catalog and e-commerce platform. The moat is brand positioning and merchandising scale in a category where most rivals are either mass-market or boutique, which shows up in a 45.7% gross margin and a 17.3% operating margin. Revenue is growing 6.7% and the return on equity is 55.0%, so the business is compounding capital efficiently at a time when housing turnover has been weak. The stock trades at 24.5x trailing and 22.7x forward earnings, a price that leaves little room for a slow housing recovery or a further gross margin slip, so the case rests on whether top-line growth holds up and margins hold near current levels. A score of 75/100 and a $28.1B market cap put it worth a closer look on quality, though valuation is the first question to answer.