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, indicating a strong improvement in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 17, an EV to EBITDA of 11.19, and an impressive ROCE of 106.64%. In comparison, Target Corp. has a P/E of 11.82, while Tractor Supply Co. shows a much higher P/E of 32.73, highlighting Williams-Sonoma's relative attractiveness in the retail sector.
Additionally, the company's stock has performed well against the S&P 500, with a 1-year return of 44.89% compared to the index's 19.89%, and an impressive 3-year return of 213.88% versus 76.66% for the S&P 500. This performance reinforces the notion that Williams-Sonoma is currently undervalued in the market.