Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Williams-Sonoma Inc., current price multiples
| Williams-Sonoma Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | Consumer Discretionary Distribution & Retail | Consumer Discretionary | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $287.81 | |||||||||
| No. shares of common stock outstanding | 64,308,083 | |||||||||
| Growth rate (g) | 32.03% | |||||||||
| Earnings per share (EPS) | $14.77 | |||||||||
| Next year expected EPS | $19.50 | |||||||||
| Operating profit per share | $19.35 | |||||||||
| Sales per share | $120.52 | |||||||||
| Book value per share (BVPS) | $33.09 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 19.49 | 64.47 | 25.14 | 18.85 | 29.71 | 45.60 | 36.43 | |||
| Price to next year expected earnings | 14.76 | 55.68 | 4.05 | 6.51 | 22.28 | 36.58 | 29.89 | |||
| Price-earnings-growth (PEG) | 0.61 | 4.09 | 0.05 | 0.10 | 0.89 | 1.85 | 1.66 | |||
| Price to operating profit (P/OP) | 14.88 | 53.22 | 17.55 | 12.60 | 22.93 | 34.52 | 31.62 | |||
| Price to sales (P/S) | 2.39 | 3.41 | 2.49 | 1.69 | 2.45 | 2.98 | 2.88 | |||
| Price to book value (P/BV) | 8.70 | 9.72 | 364.63 | — | 18.20 | 13.40 | 11.14 | |||
Based on: 10-K (reporting date: 2024-01-28).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Williams-Sonoma Inc., historical price multiples
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Williams-Sonoma Inc. P/E ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Williams-Sonoma Inc. P/OP ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Williams-Sonoma Inc. P/S ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Williams-Sonoma Inc. P/BV ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |
Price to Earnings (P/E)
Williams-Sonoma Inc., historical P/E calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 64,112,265 | 66,228,239 | 71,558,874 | 76,192,973 | 77,197,681 | 78,563,968 | |
| Selected Financial Data (US$) | |||||||
| Net earnings (in thousands) | 949,762) | 1,127,904) | 1,126,337) | 680,714) | 356,062) | 333,684) | |
| Earnings per share (EPS)2 | 14.81 | 17.03 | 15.74 | 8.93 | 4.61 | 4.25 | |
| Share price1, 3 | 295.05 | 117.70 | 148.55 | 184.00 | 42.05 | 59.36 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 19.92 | 6.91 | 9.44 | 20.60 | 9.12 | 13.98 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Amazon.com Inc. | — | 58.66 | — | 48.08 | 78.20 | 86.30 | |
| Home Depot Inc. | 24.80 | 17.09 | 19.94 | 24.51 | 17.38 | 18.87 | |
| Lowe’s Cos. Inc. | 18.81 | 17.65 | 17.84 | 22.36 | 11.96 | 37.80 | |
| TJX Cos. Inc. | 24.63 | 25.22 | 22.20 | 881.78 | 17.13 | 21.11 | |
| P/E Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 39.66 | 63.32 | 40.84 | 49.11 | 48.49 | |
| P/E Ratio, Industry | |||||||
| Consumer Discretionary | — | 33.07 | 44.76 | 38.75 | 72.10 | 39.37 | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net earnings ÷ No. shares of common stock outstanding
= 949,762,000 ÷ 64,112,265 = 14.81
3 Closing price as at the filing date of Williams-Sonoma Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 295.05 ÷ 14.81 = 19.92
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Williams-Sonoma Inc. P/E ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |
Price to Operating Profit (P/OP)
Williams-Sonoma Inc., historical P/OP calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 64,112,265 | 66,228,239 | 71,558,874 | 76,192,973 | 77,197,681 | 78,563,968 | |
| Selected Financial Data (US$) | |||||||
| Operating income (in thousands) | 1,244,193) | 1,498,422) | 1,453,116) | 910,697) | 465,874) | 435,953) | |
| Operating profit per share2 | 19.41 | 22.63 | 20.31 | 11.95 | 6.03 | 5.55 | |
| Share price1, 3 | 295.05 | 117.70 | 148.55 | 184.00 | 42.05 | 59.36 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 15.20 | 5.20 | 7.32 | 15.39 | 6.97 | 10.70 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Amazon.com Inc. | — | 48.43 | 86.50 | 64.48 | 72.85 | 68.77 | |
| Home Depot Inc. | 17.32 | 12.16 | 14.22 | 17.25 | 12.33 | 13.51 | |
| Lowe’s Cos. Inc. | 12.58 | 11.18 | 12.45 | 13.52 | 8.11 | 21.77 | |
| TJX Cos. Inc. | 19.01 | 18.15 | 15.32 | 137.02 | 12.69 | 15.31 | |
| P/OP Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 30.02 | 30.89 | 39.89 | 39.83 | 35.55 | |
| P/OP Ratio, Industry | |||||||
| Consumer Discretionary | — | 28.71 | 26.77 | 40.49 | 58.11 | 30.48 | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 1,244,193,000 ÷ 64,112,265 = 19.41
3 Closing price as at the filing date of Williams-Sonoma Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 295.05 ÷ 19.41 = 15.20
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Williams-Sonoma Inc. P/OP ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |
Price to Sales (P/S)
Williams-Sonoma Inc., historical P/S calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 64,112,265 | 66,228,239 | 71,558,874 | 76,192,973 | 77,197,681 | 78,563,968 | |
| Selected Financial Data (US$) | |||||||
| Net revenues (in thousands) | 7,750,652) | 8,674,417) | 8,245,936) | 6,783,189) | 5,898,008) | 5,671,593) | |
| Sales per share2 | 120.89 | 130.98 | 115.23 | 89.03 | 76.40 | 72.19 | |
| Share price1, 3 | 295.05 | 117.70 | 148.55 | 184.00 | 42.05 | 59.36 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 2.44 | 0.90 | 1.29 | 2.07 | 0.55 | 0.82 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Amazon.com Inc. | — | 3.10 | 2.06 | 3.41 | 4.32 | 3.56 | |
| Home Depot Inc. | 2.46 | 1.86 | 2.17 | 2.39 | 1.77 | 1.94 | |
| Lowe’s Cos. Inc. | 1.68 | 1.17 | 1.56 | 1.46 | 0.71 | 1.23 | |
| TJX Cos. Inc. | 2.03 | 1.77 | 1.50 | 2.48 | 1.34 | 1.66 | |
| P/S Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 2.59 | 1.99 | 2.94 | 3.23 | 2.73 | |
| P/S Ratio, Industry | |||||||
| Consumer Discretionary | — | 2.62 | 2.27 | 3.56 | 3.77 | 2.33 | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Net revenues ÷ No. shares of common stock outstanding
= 7,750,652,000 ÷ 64,112,265 = 120.89
3 Closing price as at the filing date of Williams-Sonoma Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 295.05 ÷ 120.89 = 2.44
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Williams-Sonoma Inc. P/S ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |
Price to Book Value (P/BV)
Williams-Sonoma Inc., historical P/BV calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 64,112,265 | 66,228,239 | 71,558,874 | 76,192,973 | 77,197,681 | 78,563,968 | |
| Selected Financial Data (US$) | |||||||
| Stockholders’ equity (in thousands) | 2,127,861) | 1,701,051) | 1,664,207) | 1,651,185) | 1,235,860) | 1,155,714) | |
| Book value per share (BVPS)2 | 33.19 | 25.68 | 23.26 | 21.67 | 16.01 | 14.71 | |
| Share price1, 3 | 295.05 | 117.70 | 148.55 | 184.00 | 42.05 | 59.36 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 8.89 | 4.58 | 6.39 | 8.49 | 2.63 | 4.04 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Amazon.com Inc. | — | 8.84 | 7.25 | 11.60 | 17.86 | 16.11 | |
| Home Depot Inc. | 359.76 | 187.12 | — | 95.58 | — | — | |
| Lowe’s Cos. Inc. | — | — | — | 90.79 | 25.96 | 24.01 | |
| TJX Cos. Inc. | 15.09 | 13.86 | 12.14 | 13.68 | 9.42 | 12.79 | |
| P/BV Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 11.65 | 11.07 | 14.31 | 20.07 | 19.77 | |
| P/BV Ratio, Industry | |||||||
| Consumer Discretionary | — | 10.11 | 9.55 | 13.30 | 18.17 | 13.59 | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 2,127,861,000 ÷ 64,112,265 = 33.19
3 Closing price as at the filing date of Williams-Sonoma Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 295.05 ÷ 33.19 = 8.89
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Williams-Sonoma Inc. P/BV ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |