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Williams-Sonoma PE Ratio

: 14.50 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2021-10-15), Williams-Sonoma's share price is $182.26. Williams-Sonoma's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jul. 2021 was $12.57. Therefore, Williams-Sonoma's PE Ratio for today is 14.50.


The historical rank and industry rank for Williams-Sonoma's PE Ratio or its related term are showing as below:

NYSE:WSM' s PE Ratio Range Over the Past 10 Years
Min: 8.1   Med: 17.11   Max: 26.44
Current: 14.5

8.1
26.44

During the past 13 years, the highest PE Ratio of Williams-Sonoma was 26.44. The lowest was 8.10. And the median was 17.11.


NYSE:WSM's PE Ratio is ranked lower than
68% of the 146 Companies
in the Retail - Cyclical industry.

( Industry Median: 21.00 vs. NYSE:WSM: 14.50 )

Williams-Sonoma's Earnings per Share (Diluted) for the three months ended in Jul. 2021 was $3.21. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jul. 2021 was $12.57.

As of today (2021-10-15), Williams-Sonoma's share price is $182.26. Williams-Sonoma's EPS without NRI for the trailing twelve months (TTM) ended in Jul. 2021 was $12.57. Therefore, Williams-Sonoma's PE Ratio without NRI for today is 14.50.

During the past 13 years, Williams-Sonoma's highest PE Ratio without NRI was 26.44. The lowest was 8.10. And the median was 17.11.

Williams-Sonoma's EPS without NRI for the three months ended in Jul. 2021 was $3.21. Its EPS without NRI for the trailing twelve months (TTM) ended in Jul. 2021 was $12.57.

During the past 12 months, Williams-Sonoma's average EPS without NRI Growth Rate was 142.20% per year. During the past 3 years, the average EPS without NRI Growth Rate was 41.80% per year. During the past 5 years, the average EPS without NRI Growth Rate was 18.10% per year. During the past 10 years, the average EPS without NRI Growth Rate was 11.70% per year.

During the past 13 years, Williams-Sonoma's highest 3-Year average EPS without NRI Growth Rate was 167.80% per year. The lowest was -46.30% per year. And the median was 13.40% per year.

Williams-Sonoma's EPS (Basic) for the three months ended in Jul. 2021 was $3.29. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jul. 2021 was $12.94.


Williams-Sonoma PE Ratio Historical Data

The historical data trend for Williams-Sonoma's PE Ratio 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.

* Premium members only.

Williams-Sonoma Annual Data
Trend Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.14 16.96 13.44 15.61 14.97

Williams-Sonoma Quarterly Data
Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.79 13.43 14.97 15.44 12.07

Competitive Comparison

For the Specialty Retail subindustry, Williams-Sonoma's PE Ratio, along with its competitors' market caps and PE Ratio 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 PE Ratio Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Williams-Sonoma's PE Ratio distribution charts can be found below:

* The bar in red indicates where Williams-Sonoma's PE Ratio falls into.



Williams-Sonoma PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Williams-Sonoma's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=182.26/12.570
=14.50

Williams-Sonoma's Share Price of today is $182.26.
Williams-Sonoma's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jul. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $12.57.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Williams-Sonoma  (NYSE:WSM) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Williams-Sonoma PE Ratio Related Terms

Thank you for viewing the detailed overview of Williams-Sonoma's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Williams-Sonoma Business Description

Williams-Sonoma logo
Industry
Consumer Cyclical » Retail - Cyclical NAICS : 442299 SIC : 5719
Traded in Other Exchanges
Address
3250 Van Ness Avenue, San Francisco, CA, USA, 94109
With a wide retail and direct-to-consumer presence, Williams-Sonoma is a leader in the $112 billion domestic home furnishings category. Namesake Williams-Sonoma (195 stores) offers high-end cooking essentials, while Pottery Barn (195) provides casual home accessories. Brand extensions include Pottery Barn Kids (57) and PBteen. West Elm (121) is an emerging concept for young professionals, and Rejuvenation (10) offers lighting and house parts. Williams-Sonoma also has a business-to-business team that supports projects that range from residential to large-scale commercial.
Executives
Dahnke Scott Arnold director 599 WEST PUTNAM AVENUE GREENWICH CT 06830
Van Paasschen Frits D director C/O STARWOOD HOTELS & RESORTS WORLDWIDE 1111 WESTCHESTER AVENUE WHITE PLAINS NY 10604
Whalen Julie officer: EVP CHIEF FINANCIAL OFFICER 3260 VAN NESS AVENUE SAN FRANCISCO CA 94109
Ross Ryan officer: PRESIDENT WS BRAND 3250 VAN NESS AVE. SAN FRANCISCO CA 94109
Alber Laura director, officer: PRESIDENT & CEO PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: ALBER LAURA a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Bellos Alex officer: PRESIDENT WEST ELM BRAND C/O WILLIAMS-SONOMA, INC. 3250 VAN NESS AVENUE SAN FRANCISCO CA 94109
Mulcahy Anne M director C/O GRAHAM HOLDINGS 1300 NORTH 17TH ST SUITE 1700 ARLINGTON VA 22209
Simmons Sabrina director GAP INC. 2 FOLSOM STREET SAN FRANCISCO CA 94105
Bellamy Adrian D P director C/O GAP, INC. 2 FOLSOM ST. SAN FRANCISCO CA 94105
Whiteford Grace Puma director C/O WILLIAM SONOMA, INC. 3250 VAN NESS AVENUE SAN FRANCISCO CA 94109
King David Randolph officer: EVP GENERAL COUNSEL 3250 VAN NESS AVENUE SAN FRANCISCO CA 94109
Benson Marta officer: PRESIDENT POTTERY BARN BRAND C/O RESTORATION HARDWARE 15 KOCH ROAD, SUITE J CORTE MADERA CA 94925
Ready William J director C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Lord Robert director 506 SECOND AVENUE, 9TH FLOOR SEATTLE WA 98104
Shi Christiana Smith director 500 WESTRIDGE DRIVE WATSONVILLE CA 95076

Williams-Sonoma Headlines

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