Is Williams-Sonoma, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Williams-Sonoma, Inc. moved from attractive to very attractive. The company appears undervalued based on its strong performance metrics, including a P/E ratio of 17, an EV to EBITDA of 11.19, and a remarkable ROCE of 106.64%. In comparison, Target Corp. has a P/E of 11.82, while Tractor Supply Co. shows a higher P/E of 32.73, indicating that Williams-Sonoma is priced more favorably relative to its peers.
The company's recent stock performance has been impressive, with a 1-year return of 44.89%, significantly outperforming the S&P 500's return of 19.89% over the same period. This strong performance, combined with its attractive valuation ratios, reinforces the conclusion that Williams-Sonoma, Inc. is currently undervalued in the market.