Is Williams-Sonoma, Inc. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Williams-Sonoma, Inc. moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company appears undervalued based on its current metrics, with a P/E ratio of 17, an EV to EBITDA of 11.19, and a remarkable ROCE of 106.64%. In comparison to peers, Target Corp. has a P/E of 11.82, while Ulta Beauty, Inc. shows a P/E of 19.72, highlighting Williams-Sonoma's relative attractiveness in the retail sector.
Despite a recent decline in stock performance over the past week and month, where it returned -1.92% and -1.01% respectively, the company has significantly outperformed the S&P 500 over the longer term, with a 1-year return of 35.29% compared to the index's 17.14% and a staggering 5-year return of 358.00% against 96.61%. This long-term performance reinforces the notion that Williams-Sonoma, Inc. is currently undervalued.