Williams-SonomaMEX:WSM 79 Return-on-Tangible-Equity is 48.99% as of Apr. 2026, which is 4% below its 10-year median of 50.91. GuruFocus rates MEX:WSM with a GF Score™ of 79/100 and a GF Value™ of MXN2,312.64 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,056 Retail - Cyclical companies, Williams-Sonoma ranks better than 89.3% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Williams-Sonoma's annualized net income for the quarter that ended in Apr. 2026 was MXN16,210 Mil. Williams-Sonoma's average shareholder tangible equity for the quarter that ended in Apr. 2026 was MXN33,092 Mil. Therefore, Williams-Sonoma's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was 48.99%.
The historical rank and industry rank for Williams-Sonoma's Return-on-Tangible-Equity or its related term are showing as below:
MEX:WSM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 21.34 Med: 50.91 Max: 71.64
Current: 54.73
During the past 13 years, Williams-Sonoma's highest Return-on-Tangible-Equity was 71.64%. The lowest was 21.34%. And the median was 50.91%.
MEX:WSM's Return-on-Tangible-Equity is ranked better than 89.3% of 1056
companies
in the Retail - Cyclical industry
Industry Median: 8.325
vs MEX:WSM: 54.73
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Williams-Sonoma Return-on-Tangible-Equity Related Terms
Williams-Sonoma Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Williams-Sonoma's Return-on-Tangible-Equity 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.
MEX:WSM vs CASY, DKS, ULTA: Return-on-Tangible-Equity Comparison
For the Specialty Retail subindustry, Williams-Sonoma's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Williams-Sonoma's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Williams-Sonoma's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 48.99% mean?
Williams-Sonoma (MEX:WSM) has a Return-on-Tangible-Equity of 48.99% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Williams-Sonoma and its competitors. This is near median its historical median of 50.91. Over the past decade, Williams-Sonoma's Return-on-Tangible-Equity has ranged from 21.34 to 71.64. According to the industry distribution chart, Williams-Sonoma ranks #113 out of 1056 companies in the Retail - Cyclical industry, placing it in the top 10.7%.
Is Williams-Sonoma's Return-on-Tangible-Equity too high?
Williams-Sonoma's current Return-on-Tangible-Equity of 48.99% is near median its 10-year median of 50.91. Over the past 10 years, this metric has ranged from a low of 21.34 to a high of 71.64. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.33. Williams-Sonoma's value of 48.99% is 488.5% above this industry median. Based on the distribution chart, Williams-Sonoma ranks #113 out of 1056 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Williams-Sonoma has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Williams-Sonoma's Return-on-Tangible-Equity compare to CASY and DKS?
According to the Retail - Cyclical industry distribution chart, Williams-Sonoma ranks #113 out of 1056 companies for Return-on-Tangible-Equity. This places Williams-Sonoma in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.33. Williams-Sonoma's value of 48.99% is 488.5% above this benchmark. Historically, Williams-Sonoma's own Return-on-Tangible-Equity has ranged from 21.34 to 71.64 over the past decade. While the company's 10-year median is 50.91 vs. the industry median of 8.33, 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 Return-on-Tangible-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.33, based on 1,056 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Williams-Sonoma's current Return-on-Tangible-Equity of 48.99% is 488.5% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Williams-Sonoma and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Williams-Sonoma's current Return-on-Tangible-Equity is 48.99%, which is near median its own 10-year median of 50.91. 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?
Based on GuruFocus' analysis, Williams-Sonoma (MEX:WSM) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN2,312.64, compared to a current price of MXN2,920.33 — trading 26.3% above its estimated fair value. The current Return-on-Tangible-Equity is 48.99%, which is near median its 10-year median of 50.91 and 488.5% above the Retail - Cyclical industry median of 8.33. Williams-Sonoma's overall GF Score™ is 79/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Williams-Sonoma (MEX:WSM), the current Return-on-Tangible-Equity is 48.99% 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 (MEX:WSM) Overvalued in 2026?
Based on GuruFocus' analysis, Williams-Sonoma stock appears to be overvalued.
The current stock price of MXN2,920.33 is trading 26.3% above its estimated GF Value™ of MXN2,312.64.
GuruFocus considers Williams-Sonoma to be Modestly Overvalued.
Key valuation signals for MEX:WSM:
Return-on-Tangible-Equity: 48.99% (near median its 10-year median of 50.91)
GF Value™: MXN2,312.64 vs. price of MXN2,920.33 (26.3% above fair value)
Industry Position: 488.5% above the Retail - Cyclical median (#113 of 1056)
No single metric tells the full story. See the MEX:WSM 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.
79GF Score
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