What Is WSM Fair Value?
Williams-Sonoma, Inc. (WSM) fair value estimate using multiple valuation models, updated daily.
As of August 29, 2026, Williams-Sonoma, Inc. (WSM) has a composite fair value estimate of $95.71 based on four valuation models: DCF (35% weight), Graham Number (25% weight), PEG (25% weight), and DDM (15% weight). The current market price is $235.09, suggesting the stock is overvalued by 59.3%.
Data as of August 29, 2026 (today)
Composite Fair Value
Overvalued4 of 4 models$95.71
vs. current price of $235.09(-59.3%)
How Is WSM Fair Value Calculated?
Four independent models estimate what WSM is worth. Each uses different inputs and assumptions. The composite blends them by weight.
WSM Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
35% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$123.01
-47.7%Overvalued
Inputs used
DDM (Dividend Discount Model)
15% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$38.85
-83.5%Overvalued
Inputs used
WSM Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
25% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$59.12
-74.9%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
25% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$97.82
-58.4%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $235.09 is 47.7% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $1.16B | $1.04B |
| Year 2 | $1.27B | $1.01B |
| Year 3 | $1.38B | $977.6M |
| Year 4 | $1.50B | $948.8M |
| Year 5 | $1.63B | $920.8M |
| Year 6 | $1.78B | $893.7M |
| Year 7 | $1.93B | $867.4M |
| Year 8 | $2.10B | $841.8M |
| Year 9 | $2.29B | $817.0M |
| Year 10 | $2.49B | $792.9M |
| Terminal Value | $26.52B | $8.44B |
What Are WSM's Key Financial Metrics?
Earnings & Growth
Current Price
$235.09
EPS (TTM)
$9.62
Forward P/E
22.5
Profit Margin
14.7%
Cash & Balance Sheet
Free Cash Flow
1.1B
EBITDA
1.7B
Book Value
$15.88
Total Debt
1.5B
What Do Analysts Say About WSM?
Low
$138.00
Average
$241.05
High
$280.00
Upside
+2.5%
WSM Fair Value FAQ
What is the fair value of WSM?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), WSM's estimated fair value is $95.71. The stock is currently trading at $235.09, which makes it overvalued by our analysis.
How is WSM's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is WSM overvalued or undervalued?
Based on our analysis, WSM is overvalued. The current price of $235.09 is 59.3% above our estimated fair value of $95.71.
What do Wall Street analysts say about WSM?
19 analysts cover Williams-Sonoma, Inc. with a consensus rating of "Buy." The average price target is $241.05, ranging from $138.00 to $280.00. This implies 2.5% upside from the current price.