Is Williams-Sonoma, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Williams-Sonoma, Inc. moved from fair to very attractive, indicating a shift towards a more favorable assessment. 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 ROE of 51.70%. In comparison, Target Corp. has a P/E of 11.82, while Tractor Supply Co. is considered expensive with a P/E of 32.73, highlighting Williams-Sonoma's relative attractiveness in the retail sector.
Additionally, Williams-Sonoma has demonstrated strong performance with a 1-year return of 30.18%, significantly outperforming the S&P 500's return of 14.08% over the same period. This performance, coupled with its favorable valuation ratios, supports the conclusion that the stock is undervalued in the current market context.