Stock fact sheet · data as of
Williams-Sonoma, Inc. (WSM): fair value, margin of safety and Wheel Score
Consumer Cyclical · Specialty Retail · United States · Blend
Is WSM undervalued?
Williams-Sonoma, Inc. (WSM) closed at 242.48 on 16 Oct 2026, 64% above the GLS average fair value of 148.10. 6 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
There is a wide gap between DDM (41.79) and 10 Cap (309.33). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files WSM under Blend.
Nine valuation models for WSM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 84.55 | -65% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 64.00 | -74% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 285.89 | +18% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 103.64 | -57% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 76.06 | -69% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 309.33 | +28% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 256.37 | +6% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 41.79 | -83% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 111.25 | -54% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -5.23 | -102% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 246.31 | +2% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Williams-Sonoma, Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 7.9/10 puts WSM among the more durable businesses we track: over ten years the metrics the score watches (revenue, EPS, book value, margins, cash flow, ROIC) have mostly moved the right way, year after year.
Returns on capital are high - ROIC 30.8%, ROE 52.3%, ROA 20.1% - with debt at 0.70 times equity and a free-cash-flow yield of 4.7%.
The dividend yield is 1.17% with a payout ratio of 28% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Pottery Barn 39%, West Elm 25%, Pottery Barn Kids And Teen 15% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales; the last recorded insider buy was on 12 Sep 2026.
| Piotroski F-score | 6 / 9 | ROIC | 30.8% |
|---|---|---|---|
| GLS Moat | 7.9 / 10 | ROE | 52.3% |
| Debt / equity | 0.70 | ROA | 20.1% |
| Free-cash-flow yield | 4.7% | Payout ratio | 28% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 63: Fair
A Wheel Score of 63 puts Williams-Sonoma, Inc. in the Fair band - below the 70 the Sunday Scan requires. Value 0/25, Health 13/20, Moat 12/15, Premium 20/20 and Stability 18/20; the weakest part is Value (0/25).
Implied volatility is 48% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 12,659 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.3M shares a day on a market cap of $28.6B, with a beta of 1.47 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -64% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 12 / 15 | moat 7.9/10 | |
| Premium | 20 / 20 | implied volatility 48% | |
| Stability | 18 / 20 | 1.3M shares/day, $28.6B cap, beta 1.47 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 18 Nov 2026 (before the open), 33 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium. The shares go ex-dividend on 16 Oct 2026 (0.7600 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Specialty Retail
The 12 companies below are the closest to Williams-Sonoma, Inc. by market cap within the Specialty Retail industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CPNG Coupang, Inc. | 14.79 | 9.90 | -49% | 45Weak | $26.6B |
| ULTA Ulta Beauty, Inc. | 592.42 | 476.96 | -24% | 61Fair | $25.5B |
| CASY Casey's General Stores, Inc. | 673.63 | 330.95 | -104% | 64Fair | $24.9B |
| JD JD.com, Inc. | 27.39 | 114.53 | +76% | 88Prime | $37.0B |
| BBY Best Buy Co., Inc. | 94.17 | 93.88 | -0% | 78Good | $19.8B |
| TSCO Tractor Supply Company | 32.74 | 21.97 | -49% | 67Good | $17.1B |
| AZO AutoZone, Inc. | 3,059.62 | 2,988.47 | -2% | 67Good | $49.9B |
| EBAY eBay Inc. | 122.91 | 108.54 | -13% | 71Good | $54.7B |
| W Wayfair Inc. | 104.78 | 83.75 | -25% | 44Weak | $14.4B |
| GME GameStop Corp. | 28.02 | 38.65 | +28% | 72Good | $14.1B |
| SE Sea Limited | 95.31 | 113.41 | +16% | 77Good | $58.3B |
| DKS DICK'S Sporting Goods, Inc. | 140.84 | 163.52 | +14% | 76Good | $12.5B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about WSM
Is WSM undervalued right now?
No: at 242.48 the stock trades 64% above the GLS average fair value of 148.10 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of WSM and what does it mean?
WSM scores 63 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for WSM?
148.10 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Williams-Sonoma, Inc. report earnings next?
The next earnings report is due on 18 Nov 2026 (before the open), 33 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does WSM have listed options, and how liquid are they?
Yes. The nightly snapshot found 804 listed contracts with 12,659 open interest across all expiries and implied volatility of 48% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.