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    Williams-Sonoma (WSM): Valuation Check After a Year of Earnings Beats and Softer Near-Term Expectations

    Simply Wall St·12/11/2025 11:20:52
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    Williams-Sonoma (WSM) is back on investors radar after a streak of earnings and revenue beats over the past year, even as near term forecasts soften and estimates for the next fiscal year point higher.

    See our latest analysis for Williams-Sonoma.

    The latest 1-day share price return of 3.7 percent, leaving the stock at about 187 dollars, contrasts with its weaker 90 day share price return of roughly negative 8 percent. However, a powerful three year total shareholder return of around 241 percent shows that longer term momentum has still rewarded patient holders even as near term enthusiasm cools.

    If Williams Sonoma has you rethinking what quality and durability look like in retail, it might be a good moment to explore fast growing stocks with high insider ownership for other compelling ideas.

    With shares pausing after a stellar multi year run, yet still hovering just below analyst targets, the key question now is whether Williams Sonoma is quietly trading at a discount or if the market has already priced in its next leg of growth.

    Most Popular Narrative: 5.6% Undervalued

    Compared to the last close of 187.10 dollars, the most followed narrative suggests Williams Sonoma’s fair value sits modestly higher, hinting at quiet upside based on medium term execution and capital returns.

    Strong momentum in B2B and contract channels, as well as international markets, broadens the addressable market and diversifies revenue streams beyond traditional U.S. retail, contributing to steady top line growth and earnings stability.

    Read the complete narrative.

    Curious how steady but unspectacular growth, resilient margins, and a richer future earnings multiple can still add up to upside from here? The narrative’s projections quietly lean on disciplined buybacks, expanding newer channels, and a valuation usually reserved for faster growers. Want to see exactly how those moving parts stack together to justify that higher fair value and why a seemingly small discount could matter more than it looks?

    Result: Fair Value of $198.21 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, that upside case still depends on navigating tariff volatility and a softer housing market, which could crimp big ticket demand and pressure margins.

    Find out about the key risks to this Williams-Sonoma narrative.

    Build Your Own Williams-Sonoma Narrative

    If you see the story differently or would rather lean on your own analysis, you can build a custom view in just a few minutes: Do it your way.

    A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Williams-Sonoma.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.