Williams-SonomaSTU:WM1 -1.47%88 ROE % is 46.95% as of Apr. 2026, which is 3% below its 10-year median of 48.39. GuruFocus rates STU:WM1 with a GF Score™ of 88/100 and a GF Value™ of €152.12 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,092 Retail - Cyclical companies, Williams-Sonoma ranks better than 94.96% on this metric.
The historical rank and industry rank for Williams-Sonoma's ROE % or its related term are showing as below:
STU:WM1'
s ROE % Range Over the Past 10 Years
Min: 21.17 Med: 48.39 Max: 67.95
Current: 52.68
During the past 13 years, Williams-Sonoma's highest ROE % was 67.95%. The lowest was 21.17%. And the median was 48.39%.
STU:WM1's ROE % is ranked better than 94.96% of 1092
companies
in the Retail - Cyclical industry
Industry Median: 6.49
vs STU:WM1: 52.68
Williams-Sonoma (STU:WM1) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Williams-Sonoma ROE % Related Terms
Williams-Sonoma ROE % Historical Data
* Premium members only.
The historical data trend for Williams-Sonoma's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Williams-Sonoma's ROE % distribution charts can be found below:
* The bar in red indicates where Williams-Sonoma's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Williams-Sonoma (STU:WM1) has a ROE % of 46.95% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Williams-Sonoma and its competitors. This is near median its historical median of 48.39. Over the past decade, Williams-Sonoma's ROE % has ranged from 21.17 to 67.95. According to the industry distribution chart, Williams-Sonoma ranks #55 out of 1092 companies in the Retail - Cyclical industry, placing it in the top 5%.
Is Williams-Sonoma's ROE % too high?
Williams-Sonoma's current ROE % of 46.95% is near median its 10-year median of 48.39. Over the past 10 years, this metric has ranged from a low of 21.17 to a high of 67.95. The Retail - Cyclical industry median ROE % is 6.49. Williams-Sonoma's value of 46.95% is 623.4% above this industry median. Based on the distribution chart, Williams-Sonoma ranks #55 out of 1092 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 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Williams-Sonoma's ROE % compare to CASY and DKS?
According to the Retail - Cyclical industry distribution chart, Williams-Sonoma ranks #55 out of 1092 companies for ROE %. This places Williams-Sonoma in the top 5% of its industry — outperforming the majority of peers. The industry median ROE % is 6.49. Williams-Sonoma's value of 46.95% is 623.4% above this benchmark. Historically, Williams-Sonoma's own ROE % has ranged from 21.17 to 67.95 over the past decade. While the company's 10-year median is 48.39 vs. the industry median of 6.49, 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 ROE % for a Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.49, based on 1,092 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Williams-Sonoma's current ROE % of 46.95% is 623.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Williams-Sonoma and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Williams-Sonoma's current ROE % is 46.95%, which is near median its own 10-year median of 48.39. 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 (STU:WM1) is currently considered Significantly Overvalued. The stock's GF Value™ is €152.12, compared to a current price of €201.00 — trading 32.1% above its estimated fair value. The current ROE % is 46.95%, which is near median its 10-year median of 48.39 and 623.4% above the Retail - Cyclical industry median of 6.49. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Williams-Sonoma (STU:WM1), the current ROE % is 46.95% 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 (STU:WM1) Overvalued in 2026?
Based on GuruFocus' analysis, Williams-Sonoma stock appears to be overvalued.
The current stock price of €201.00 is trading 32.1% above its estimated GF Value™ of €152.12.
GuruFocus considers Williams-Sonoma to be Significantly Overvalued.
Key valuation signals for STU:WM1:
ROE %: 46.95% (near median its 10-year median of 48.39)
GF Value™: €152.12 vs. price of €201.00 (32.1% above fair value)
Industry Position: 623.4% above the Retail - Cyclical median (#55 of 1092)
No single metric tells the full story. See the STU: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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