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 financial metrics. Key ratios include 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 Tractor Supply Co. shows a much higher P/E of 32.73, indicating that Williams-Sonoma may be undervalued relative to its industry. Additionally, the company's stock has significantly outperformed the S&P 500 over the 3-year and 5-year periods, with returns of 228.93% and 300.25%, respectively, compared to 76.66% and 109.18% for the index.