Williams-Sonoma Fair Value
WS
The fair market value of WSM stock is 112.07 USD. Relative to the market price of 150.08 USD Williams-Sonoma is overvalued by 25.3%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Williams-Sonoma Valuation
Current WSM share ticker price is 150.08 USD.
The fair value level of 112.07 USD can be considered as an effective entry point for long-term investors to start investing in WSM stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 25% higher its fair value
Current price is 56% higher its minimum value
Current price is 11% higher its maximum value
Market price:
WSM stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
Williams-Sonoma Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
15.87
2
Median P/E over 5 years
13.29
3
Minimum P/E over 5 years
7.82
4
Earning per share (last 12 months)
8.44 USD
Maximum value
1
x
4
=
133.88 USD
Fair value
2
x
4
=
112.07 USD
Minimum value
3
x
4
=
65.97 USD
Williams-Sonoma Inc price metrics
33.9
Annual return (geometric mean)
49.6
Risk (standard deviation) of returns
β
1.7
Beta (volatility compared to market)