Latest Ratios: P/E Ratio 25.8x · EV/EBITDA 16.6x · ROE 51.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $26.8B | $25.2B | $27.1B | $12.6B | $9.3B | $12.3B | $10.2B | $5.6B | $4.5B | $4.3B | $4.3B |
| Enterprise Value | $27.3B | $25.6B | $27.2B | $12.8B | $10.4B | $12.7B | $10.5B | $6.7B | $4.4B | $4.2B | $4.1B |
| P/E Ratio → | 25.77 | 23.15 | 24.05 | 13.28 | 8.27 | 10.88 | 14.97 | 15.59 | 13.43 | 16.53 | 14.13 |
| P/S Ratio | 3.44 | 3.23 | 3.51 | 1.63 | 1.07 | 1.49 | 1.50 | 0.94 | 0.79 | 0.81 | 0.85 |
| P/B Ratio | 13.47 | 12.10 | 12.63 | 5.93 | 5.48 | 7.37 | 6.17 | 4.49 | 3.88 | 3.56 | 3.46 |
| P/FCF | 25.42 | 23.88 | 23.77 | 8.46 | 13.35 | 10.71 | 9.22 | 13.19 | 11.32 | 13.84 | 13.18 |
| P/OCF | 20.40 | 19.17 | 19.90 | 7.51 | 8.86 | 8.94 | 7.99 | 9.14 | 7.65 | 8.59 | 8.22 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.28 | 3.53 | 1.65 | 1.20 | 1.54 | 1.55 | 1.14 | 0.78 | 0.79 | 0.81 |
| EV / EBITDA | 16.55 | 15.57 | 16.38 | 8.64 | 6.07 | 7.70 | 9.57 | 10.32 | 7.11 | 6.59 | 6.35 |
| EV / EBIT | 19.26 | 18.11 | 19.02 | 10.25 | 6.94 | 8.73 | 11.56 | 14.47 | 10.19 | 9.25 | 8.68 |
| EV / FCF | — | 24.29 | 23.89 | 8.55 | 14.89 | 11.09 | 9.52 | 16.01 | 11.22 | 13.55 | 12.53 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 46.2% | 46.2% | 46.5% | 42.6% | 42.4% | 44.0% | 38.9% | 36.3% | 37.0% | 36.5% | 37.0% |
| Operating Margin | 18.1% | 18.1% | 18.5% | 16.1% | 17.3% | 17.6% | 13.4% | 7.9% | 7.7% | 8.6% | 9.3% |
| Net Profit Margin | 13.9% | 13.9% | 14.6% | 12.3% | 13.0% | 13.7% | 10.0% | 6.0% | 5.9% | 4.9% | 6.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 51.5% | 51.5% | 52.7% | 49.6% | 67.0% | 67.9% | 47.2% | 29.8% | 28.3% | 21.2% | 25.0% |
| ROA | 20.3% | 20.3% | 21.3% | 19.1% | 24.3% | 24.3% | 15.6% | 10.4% | 11.9% | 9.9% | 12.5% |
| ROIC | 44.3% | 44.3% | 47.3% | 37.1% | 46.1% | 53.4% | 31.0% | 19.7% | 29.3% | 31.7% | 34.8% |
| ROCE | 41.4% | 41.4% | 42.2% | 38.8% | 51.0% | 51.3% | 34.6% | 22.3% | 24.8% | 27.6% | 32.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.70 | 0.70 | 0.63 | 0.65 | 0.85 | 0.77 | 0.93 | 1.31 | 0.26 | 0.25 | — |
| Debt / EBITDA | 0.88 | 0.88 | 0.81 | 0.94 | 0.84 | 0.78 | 1.40 | 2.48 | 0.48 | 0.47 | — |
| Net Debt / Equity | — | 0.21 | 0.06 | 0.06 | 0.63 | 0.26 | 0.20 | 0.96 | -0.03 | -0.08 | -0.17 |
| Net Debt / EBITDA | 0.27 | 0.27 | 0.08 | 0.09 | 0.63 | 0.26 | 0.30 | 1.82 | -0.06 | -0.14 | -0.33 |
| Debt / FCF | — | 0.41 | 0.12 | 0.09 | 1.54 | 0.38 | 0.30 | 2.83 | -0.10 | -0.29 | -0.65 |
| Interest Coverage | — | — | — | — | — | 779.15 | 56.11 | 52.62 | 65.01 | 330.77 | 686.92 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.39 | 1.39 | 1.44 | 1.45 | 1.24 | 1.31 | 1.33 | 1.09 | 1.58 | 1.62 | 1.42 |
| Quick Ratio | 0.64 | 0.64 | 0.74 | 0.78 | 0.35 | 0.61 | 0.79 | 0.41 | 0.53 | 0.57 | 0.41 |
| Cash Ratio | 0.52 | 0.52 | 0.63 | 0.67 | 0.22 | 0.48 | 0.65 | 0.27 | 0.32 | 0.39 | 0.22 |
| Asset Turnover | — | 1.44 | 1.45 | 1.47 | 1.86 | 1.78 | 1.46 | 1.45 | 2.02 | 1.90 | 2.05 |
| Inventory Turnover | 2.87 | 2.87 | 3.10 | 3.57 | 3.43 | 3.70 | 4.12 | 3.42 | 3.17 | 3.17 | 3.27 |
| Days Sales Outstanding | — | 5.93 | 5.57 | 5.79 | 4.87 | 5.83 | 7.73 | 6.91 | 6.89 | 6.22 | 6.38 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.1% | 1.3% | 1.0% | 1.8% | 2.3% | 1.5% | 1.5% | 2.7% | 3.1% | 3.1% | 3.1% |
| Payout Ratio | 29.1% | 29.1% | 24.9% | 24.5% | 19.3% | 16.7% | 23.2% | 42.3% | 42.1% | 52.0% | 43.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.9% | 4.3% | 4.2% | 7.5% | 12.1% | 9.2% | 6.7% | 6.4% | 7.4% | 6.0% | 7.1% |
| FCF Yield | 3.9% | 4.2% | 4.2% | 11.8% | 7.5% | 9.3% | 10.8% | 7.6% | 8.8% | 7.2% | 7.6% |
| Buyback Yield | 3.2% | 3.4% | 3.0% | 2.5% | 9.4% | 7.3% | 1.5% | 2.7% | 6.6% | 4.6% | 3.5% |
| Total Shareholder Yield | 4.3% | 4.6% | 4.0% | 4.3% | 11.8% | 8.9% | 3.0% | 5.4% | 9.7% | 7.7% | 6.6% |
| Shares Outstanding | — | $123M | $128M | $131M | $138M | $153M | $158M | $158M | $165M | $167M | $179M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying WSM stock.
Williams-Sonoma, Inc.'s current P/E ratio is 25.8x. The historical average is 21.2x. This places it at the 73th percentile of its historical range.
Williams-Sonoma, Inc.'s current EV/EBITDA is 16.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.4x.
Williams-Sonoma, Inc.'s return on equity (ROE) is 51.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 27.0%.
Based on historical data, Williams-Sonoma, Inc. is trading at a P/E of 25.8x. This is at the 73th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Williams-Sonoma, Inc.'s current dividend yield is 1.13% with a payout ratio of 29.1%.
Williams-Sonoma, Inc. has 46.2% gross margin and 18.1% operating margin. Operating margin between 10-20% is typical for established companies.
Williams-Sonoma, Inc.'s Debt/EBITDA ratio is 0.9x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Housing cycle sensitivity
Metrics are mathematically derived from official filings.
Premium Valuation Reflects Margin Durability
Williams-Sonoma trades at a forward P/E of 27.0x and EV/EBITDA of 17.0x, a significant premium to peers like RH (12.6x EV/EBITDA) and Wayfair, suggesting the market is pricing in the durability of its recent margin expansion and digital-first model.
The valuation premium appears to be a bet on the sustainability of the 'no-promotion' strategy and the company's ability to maintain its 51.6% gross margin, which is well above historical norms and peers. However, the PEG ratio of 1.72 indicates that the market is pricing in above-average earnings growth, which may be vulnerable if the housing cycle turns or if the promotional environment returns. Investors should monitor whether the premium is justified by structural advantages or if it represents cyclical peak pricing.
Gross Margin Surge Signals Structural Shift
Gross margin expanded to a record 51.6% in Q2 2026, a substantial increase from the 46-47% range seen in prior quarters, which may indicate a successful and potentially permanent shift away from promotional pricing.
This expansion is the primary driver of the company's strong profitability, with operating margin reaching 22.9% and net margin at 17.3%. The sustainability of this margin level is the key analytical question; if it reflects a retrained customer base buying at full price, it could represent a structural upgrade in earning power. However, if it is driven by temporary factors like favorable input costs or post-pandemic demand, a reversion could compress earnings significantly.
ROIC Expansion Driven by Margin, Not Turnover
Return on invested capital (ROIC) surged to 12.6% in Q2 2026 from 9.8% a year ago, driven almost entirely by margin expansion rather than improved asset efficiency, as asset turnover remained flat at 0.37.
This suggests the company's return improvement is coming from pricing power and cost control, not from generating more sales per dollar of assets. While this is positive for near-term returns, it raises questions about long-term capital efficiency. The high ROIC relative to its cost of capital indicates value creation, but the lack of turnover improvement suggests there may be untapped potential in asset utilization, particularly in its store and distribution network.
Working Capital Cycle Lengthens with Growth
The cash conversion cycle (CCC) expanded to 85 days in Q2 2026 from 81 days a year ago, primarily due to a significant increase in days inventory outstanding (DIO) to 139 days, which may indicate inventory buildup ahead of anticipated demand.
This lengthening cycle suggests the company is tying up more cash in inventory, which could be a strategic move to support growth or a sign of slowing sell-through. The increase in DIO is notable given the company's strong sales growth, and investors should monitor whether this represents efficient inventory positioning or a potential risk if consumer demand softens. The company's strong supplier leverage, evidenced by a DPO of 61 days, partially offsets this working capital investment.
Minimal Leverage Amplifies Return on Equity
With a debt-to-equity ratio of just 0.71% and no reported interest coverage, Williams-Sonoma operates with a fortress balance sheet that amplifies its strong operating returns into a 16.9% ROE.
The minimal leverage means the company has virtually no financial risk from debt service, allowing it to weather cyclical downturns without refinancing concerns. This conservative structure also means that the high ROE is driven almost entirely by operational profitability rather than financial engineering. However, it also suggests the company may be underutilizing its balance sheet to enhance shareholder returns through more aggressive capital deployment or acquisitions.
P/E Multiple Misapplied to Cyclical Peak
The trailing P/E of 26.6x is the ratio most commonly misapplied to Williams-Sonoma, as it may be capturing peak cyclical earnings rather than normalized profitability, obscuring the true valuation in a downturn.
Investors often use the P/E multiple without adjusting for the company's high cyclicality and the current peak in its margin cycle. The more appropriate metric would be a normalized P/E based on mid-cycle earnings or an EV/EBITDA multiple that accounts for the company's strong cash generation and minimal debt. Using the current P/E without this adjustment could lead to significant valuation risk if the housing cycle turns or margins revert to historical averages.