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Williams-SonomaFRA:WM1 -2.17%88 Earnings Yield (Joel Greenblatt) % is 6.39% as of Apr. 2026, which is 27% below its 10-year median of 8.78. GuruFocus rates FRA:WM1 with a GF Score™ of 88/100 and a GF Value™ of €152.36. The stock has 6 warning signs investors should review. Among 1,130 Retail - Cyclical companies, Williams-Sonoma ranks worse than 54.42% on this metric.
Williams-Sonoma's Enterprise Value for the quarter that ended in Apr. 2026 was €18,882 Mil.
Williams-Sonoma's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 was €1,211 Mil. Williams-Sonoma's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2026 was 6.39%.
The historical rank and industry rank for Williams-Sonoma's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
FRA:WM1'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 4.57 Med: 8.78 Max: 17.51
Current: 4.82
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Williams-Sonoma was 17.51%. The lowest was 4.57%. And the median was 8.78%.
FRA:WM1's Earnings Yield (Joel Greenblatt) % is ranked worse than 54.42% of 1130
companies
in the Retail - Cyclical industry
Industry Median: 5.525
vs FRA:WM1: 4.82
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Williams-Sonoma's Forward Rate of Return (Yacktman) % for the quarter that ended in Apr. 2026 was 11.67%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Williams-Sonoma Earnings Yield (Joel Greenblatt) % Related Terms
Williams-Sonoma Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for Williams-Sonoma's Earnings Yield (Joel Greenblatt) % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Retail subindustry, Williams-Sonoma's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Williams-Sonoma Earnings Yield (Joel Greenblatt) % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Williams-Sonoma's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Williams-Sonoma's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Williams-Sonomas Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Jan. 2026 is calculated as
Williams-Sonoma's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,211 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 6.39% mean?
Williams-Sonoma (FRA:WM1) has a Earnings Yield (Joel Greenblatt) % of 6.39% as of Apr. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Williams-Sonoma and its competitors. This is 27% below median its historical median of 8.78. Over the past decade, Williams-Sonoma's Earnings Yield (Joel Greenblatt) % has ranged from 4.57 to 17.51. According to the industry distribution chart, Williams-Sonoma ranks #615 out of 1130 companies in the Retail - Cyclical industry, placing it in the top 54.4%.
Is Williams-Sonoma's Earnings Yield (Joel Greenblatt) % too high?
Williams-Sonoma's current Earnings Yield (Joel Greenblatt) % of 6.39% is 27% below median its 10-year median of 8.78. Over the past 10 years, this metric has ranged from a low of 4.57 to a high of 17.51. The Retail - Cyclical industry median Earnings Yield (Joel Greenblatt) % is 5.53. Williams-Sonoma's value of 6.39% is 15.7% above this industry median. Based on the distribution chart, Williams-Sonoma ranks #615 out of 1130 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Williams-Sonoma has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does Williams-Sonoma's Earnings Yield (Joel Greenblatt) % compare to CASY and ULTA?
According to the Retail - Cyclical industry distribution chart, Williams-Sonoma ranks #615 out of 1130 companies for Earnings Yield (Joel Greenblatt) %. This places Williams-Sonoma in the lower half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 5.53. Williams-Sonoma's value of 6.39% is 15.7% above this benchmark. Historically, Williams-Sonoma's own Earnings Yield (Joel Greenblatt) % has ranged from 4.57 to 17.51 over the past decade. While the company's 10-year median is 8.78 vs. the industry median of 5.53, Williams-Sonoma has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Retail - Cyclical company?
The median Earnings Yield (Joel Greenblatt) % among Retail - Cyclical companies is 5.53, based on 1,130 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Williams-Sonoma's current Earnings Yield (Joel Greenblatt) % of 6.39% is 15.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Williams-Sonoma and its competitors. For the Retail - Cyclical industry, the median Earnings Yield (Joel Greenblatt) % is 5.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Williams-Sonoma's current Earnings Yield (Joel Greenblatt) % is 6.39%, which is 27% below median its own 10-year median of 8.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Williams-Sonoma stock overvalued right now?
Williams-Sonoma (FRA:WM1) has a current Earnings Yield (Joel Greenblatt) % of 6.39%. The stock's GF Value™ is €152.36, compared to a current price of €212.10 — trading 39.2% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 6.39%, which is 27% below median its 10-year median of 8.78 and 15.7% above the Retail - Cyclical industry median of 5.53. Williams-Sonoma's overall GF Score™ is 88/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Williams-Sonoma (FRA:WM1), the current Earnings Yield (Joel Greenblatt) % is 6.39% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Williams-Sonoma (FRA:WM1) Overvalued in 2026?
Based on GuruFocus' analysis, Williams-Sonoma stock appears to be overvalued.
The current stock price of €212.10 is trading 39.2% above its estimated GF Value™ of €152.36.
Key valuation signals for FRA:WM1:
Earnings Yield (Joel Greenblatt) %: 6.39% (27% below median its 10-year median of 8.78)
GF Value™: €152.36 vs. price of €212.10 (39.2% above fair value)
Industry Position: 15.7% above the Retail - Cyclical median (#615 of 1130)
No single metric tells the full story. See the FRA:WM1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
With a retail and direct-to-consumer presence, Williams-Sonoma is a player in the nearly $300 billion domestic home category and $450 billion international home market, focused on expanding its exposure in the B2B ($80 billion total addressable market), marketplace, and franchise areas. Namesake Williams-Sonoma (153 stores) offers high-end cooking essentials, while Pottery Barn (180) provides casual home accessories. West Elm (116) is an emerging concept for young professionals, and Rejuvenation (13) offers lighting and house parts. Brand extensions include Pottery Barn Kids and Pottery Barn Teen (43) as well as Mark & Graham and GreenRow. Williams-Sonoma also has a business-to-business team that supports projects that range from residential to large-scale commercial.
88GF Score
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