Intrinsic value of Williams-Sonoma - WSM

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$47.48

  Intrinsic Value

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  Value-price divergence*

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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of WSM stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 4.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.17
  5.90
  5.81
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.31
  5.28
  5.25
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
  5.11
  5.10
  5.09
  5.08
  5.07
  5.06
  5.06
  5.05
  5.05
  5.04
Revenue, $m
  5,084
  5,270
  5,576
  5,895
  6,229
  6,577
  6,941
  7,321
  7,718
  8,134
  8,569
  9,025
  9,501
  10,001
  10,524
  11,071
  11,645
  12,247
  12,878
  13,539
  14,233
  14,960
  15,722
  16,523
  17,362
  18,242
  19,166
  20,136
  21,153
  22,221
  23,341
Variable operating expenses, $m
 
  4,706
  4,979
  5,264
  5,562
  5,872
  6,197
  6,537
  6,891
  7,263
  7,651
  8,056
  8,481
  8,927
  9,393
  9,882
  10,395
  10,932
  11,495
  12,085
  12,704
  13,353
  14,034
  14,748
  15,498
  16,284
  17,108
  17,974
  18,882
  19,835
  20,835
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  4,611
  4,706
  4,979
  5,264
  5,562
  5,872
  6,197
  6,537
  6,891
  7,263
  7,651
  8,056
  8,481
  8,927
  9,393
  9,882
  10,395
  10,932
  11,495
  12,085
  12,704
  13,353
  14,034
  14,748
  15,498
  16,284
  17,108
  17,974
  18,882
  19,835
  20,835
Operating income, $m
  473
  564
  597
  631
  667
  704
  743
  784
  827
  872
  918
  969
  1,020
  1,074
  1,130
  1,189
  1,251
  1,315
  1,383
  1,454
  1,528
  1,606
  1,688
  1,774
  1,864
  1,959
  2,058
  2,162
  2,271
  2,386
  2,506
EBITDA, $m
  646
  740
  783
  827
  874
  923
  974
  1,027
  1,083
  1,142
  1,203
  1,267
  1,333
  1,404
  1,477
  1,554
  1,634
  1,719
  1,807
  1,900
  1,997
  2,100
  2,207
  2,319
  2,437
  2,560
  2,690
  2,826
  2,969
  3,119
  3,276
Interest expense (income), $m
  2
  0
  143
  293
  449
  612
  783
  961
  1,147
  1,342
  1,546
  1,759
  1,982
  2,215
  2,460
  2,716
  2,984
  3,265
  3,560
  3,869
  4,192
  4,532
  4,888
  5,262
  5,653
  6,065
  6,496
  6,948
  7,423
  7,921
  8,444
Earnings before tax, $m
  472
  564
  454
  339
  218
  92
  -39
  -177
  -320
  -470
  -627
  -790
  -961
  -1,141
  -1,329
  -1,527
  -1,733
  -1,950
  -2,177
  -2,415
  -2,664
  -2,926
  -3,200
  -3,487
  -3,789
  -4,106
  -4,438
  -4,786
  -5,151
  -5,535
  -5,938
Tax expense, $m
  167
  152
  123
  91
  59
  25
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  305
  412
  332
  247
  159
  67
  -39
  -177
  -320
  -470
  -627
  -790
  -961
  -1,141
  -1,329
  -1,527
  -1,733
  -1,950
  -2,177
  -2,415
  -2,664
  -2,926
  -3,200
  -3,487
  -3,789
  -4,106
  -4,438
  -4,786
  -5,151
  -5,535
  -5,938

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  214
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  2,477
  2,355
  2,491
  2,634
  2,783
  2,939
  3,101
  3,271
  3,449
  3,635
  3,829
  4,032
  4,245
  4,469
  4,702
  4,947
  5,204
  5,472
  5,754
  6,050
  6,360
  6,684
  7,025
  7,383
  7,758
  8,151
  8,564
  8,997
  9,452
  9,929
  10,429
Adjusted assets (=assets-cash), $m
  2,263
  2,355
  2,491
  2,634
  2,783
  2,939
  3,101
  3,271
  3,449
  3,635
  3,829
  4,032
  4,245
  4,469
  4,702
  4,947
  5,204
  5,472
  5,754
  6,050
  6,360
  6,684
  7,025
  7,383
  7,758
  8,151
  8,564
  8,997
  9,452
  9,929
  10,429
Revenue / Adjusted assets
  2.247
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
  2.238
Average production assets, $m
  905
  938
  992
  1,049
  1,109
  1,171
  1,235
  1,303
  1,374
  1,448
  1,525
  1,606
  1,691
  1,780
  1,873
  1,971
  2,073
  2,180
  2,292
  2,410
  2,533
  2,663
  2,799
  2,941
  3,090
  3,247
  3,412
  3,584
  3,765
  3,955
  4,155
Working capital, $m
  406
  153
  162
  171
  181
  191
  201
  212
  224
  236
  249
  262
  276
  290
  305
  321
  338
  355
  373
  393
  413
  434
  456
  479
  503
  529
  556
  584
  613
  644
  677
Total debt, $m
  0
  71
  146
  225
  306
  391
  480
  574
  671
  773
  879
  991
  1,108
  1,230
  1,358
  1,492
  1,633
  1,780
  1,934
  2,096
  2,266
  2,444
  2,631
  2,827
  3,032
  3,248
  3,474
  3,711
  3,961
  4,222
  4,496
Total liabilities, $m
  1,229
  1,290
  1,365
  1,444
  1,525
  1,610
  1,699
  1,793
  1,890
  1,992
  2,098
  2,210
  2,327
  2,449
  2,577
  2,711
  2,852
  2,999
  3,153
  3,315
  3,485
  3,663
  3,850
  4,046
  4,251
  4,467
  4,693
  4,930
  5,180
  5,441
  5,715
Total equity, $m
  1,248
  1,064
  1,126
  1,191
  1,258
  1,328
  1,402
  1,479
  1,559
  1,643
  1,731
  1,823
  1,919
  2,020
  2,125
  2,236
  2,352
  2,474
  2,601
  2,734
  2,874
  3,021
  3,175
  3,337
  3,507
  3,684
  3,871
  4,067
  4,272
  4,488
  4,714
Total liabilities and equity, $m
  2,477
  2,354
  2,491
  2,635
  2,783
  2,938
  3,101
  3,272
  3,449
  3,635
  3,829
  4,033
  4,246
  4,469
  4,702
  4,947
  5,204
  5,473
  5,754
  6,049
  6,359
  6,684
  7,025
  7,383
  7,758
  8,151
  8,564
  8,997
  9,452
  9,929
  10,429
Debt-to-equity ratio
  0.000
  0.070
  0.130
  0.190
  0.240
  0.290
  0.340
  0.390
  0.430
  0.470
  0.510
  0.540
  0.580
  0.610
  0.640
  0.670
  0.690
  0.720
  0.740
  0.770
  0.790
  0.810
  0.830
  0.850
  0.860
  0.880
  0.900
  0.910
  0.930
  0.940
  0.950
Adjusted equity ratio
  0.457
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452
  0.452

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  305
  412
  332
  247
  159
  67
  -39
  -177
  -320
  -470
  -627
  -790
  -961
  -1,141
  -1,329
  -1,527
  -1,733
  -1,950
  -2,177
  -2,415
  -2,664
  -2,926
  -3,200
  -3,487
  -3,789
  -4,106
  -4,438
  -4,786
  -5,151
  -5,535
  -5,938
Depreciation, amort., depletion, $m
  173
  176
  186
  196
  207
  219
  231
  243
  256
  270
  284
  297
  313
  330
  347
  365
  384
  404
  424
  446
  469
  493
  518
  545
  572
  601
  632
  664
  697
  732
  769
Funds from operations, $m
  536
  587
  517
  443
  366
  286
  191
  66
  -64
  -200
  -343
  -492
  -648
  -812
  -983
  -1,162
  -1,350
  -1,546
  -1,752
  -1,968
  -2,195
  -2,432
  -2,682
  -2,943
  -3,217
  -3,504
  -3,806
  -4,122
  -4,454
  -4,803
  -5,168
Change in working capital, $m
  11
  9
  9
  9
  10
  10
  11
  11
  12
  12
  13
  13
  14
  14
  15
  16
  17
  17
  18
  19
  20
  21
  22
  23
  24
  26
  27
  28
  30
  31
  32
Cash from operations, $m
  525
  581
  508
  434
  357
  276
  181
  55
  -75
  -212
  -355
  -505
  -662
  -826
  -998
  -1,178
  -1,366
  -1,564
  -1,771
  -1,988
  -2,215
  -2,454
  -2,704
  -2,966
  -3,241
  -3,530
  -3,833
  -4,150
  -4,484
  -4,834
  -5,201
Maintenance CAPEX, $m
  0
  -164
  -174
  -184
  -194
  -205
  -217
  -229
  -241
  -254
  -268
  -282
  -297
  -313
  -330
  -347
  -365
  -384
  -404
  -424
  -446
  -469
  -493
  -518
  -545
  -572
  -601
  -632
  -664
  -697
  -732
New CAPEX, $m
  -197
  -53
  -54
  -57
  -59
  -62
  -65
  -68
  -71
  -74
  -77
  -81
  -85
  -89
  -93
  -98
  -102
  -107
  -112
  -118
  -123
  -129
  -136
  -142
  -149
  -157
  -164
  -173
  -181
  -190
  -199
Cash from investing activities, $m
  -197
  -217
  -228
  -241
  -253
  -267
  -282
  -297
  -312
  -328
  -345
  -363
  -382
  -402
  -423
  -445
  -467
  -491
  -516
  -542
  -569
  -598
  -629
  -660
  -694
  -729
  -765
  -805
  -845
  -887
  -931
Free cash flow, $m
  328
  364
  280
  193
  103
  8
  -101
  -241
  -388
  -541
  -701
  -869
  -1,044
  -1,228
  -1,420
  -1,622
  -1,833
  -2,055
  -2,287
  -2,530
  -2,785
  -3,052
  -3,333
  -3,627
  -3,935
  -4,259
  -4,598
  -4,955
  -5,329
  -5,721
  -6,133
Issuance/(repayment) of debt, $m
  0
  71
  75
  78
  82
  85
  89
  93
  97
  102
  107
  111
  117
  122
  128
  134
  141
  147
  154
  162
  170
  178
  187
  196
  206
  216
  226
  237
  249
  261
  274
Issuance/(repurchase) of shares, $m
  -146
  0
  0
  0
  0
  0
  85
  225
  371
  523
  682
  849
  1,024
  1,207
  1,398
  1,599
  1,809
  2,029
  2,260
  2,501
  2,755
  3,021
  3,300
  3,592
  3,899
  4,221
  4,559
  4,913
  5,285
  5,675
  6,085
Cash from financing (excl. dividends), $m  
  -172
  71
  75
  78
  82
  85
  174
  318
  468
  625
  789
  960
  1,141
  1,329
  1,526
  1,733
  1,950
  2,176
  2,414
  2,663
  2,925
  3,199
  3,487
  3,788
  4,105
  4,437
  4,785
  5,150
  5,534
  5,936
  6,359
Total cash flow (excl. dividends), $m
  154
  435
  355
  272
  185
  94
  -12
  -148
  -290
  -439
  -595
  -757
  -928
  -1,106
  -1,292
  -1,488
  -1,693
  -1,907
  -2,132
  -2,368
  -2,615
  -2,874
  -3,146
  -3,431
  -3,730
  -4,043
  -4,372
  -4,717
  -5,079
  -5,459
  -5,858
Retained Cash Flow (-), $m
  -50
  -60
  -62
  -65
  -67
  -70
  -73
  -77
  -80
  -84
  -88
  -92
  -96
  -101
  -106
  -111
  -116
  -122
  -127
  -134
  -140
  -147
  -154
  -162
  -170
  -178
  -187
  -196
  -205
  -216
  -226
Prev. year cash balance distribution, $m
 
  194
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  569
  293
  207
  117
  23
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  545
  269
  180
  97
  18
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  98.1
  93.7
  87.2
  79.2
  70.5
  61.5
  52.7
  44.4
  36.8
  30.1
  24.2
  19.3
  15.2
  11.8
  9.1
  6.9
  5.2
  3.9
  2.9
  2.1
  1.6
  1.1
  0.8
  0.6
  0.4

Williams-Sonoma, Inc. operates as a multi-channel specialty retailer of various products for home. It operates through two segments, E-commerce and Retail. The company offers cooking, dining, and entertaining products, including cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture, and a library of cookbooks under the Williams-Sonoma brand, as well as home furnishings and decorative accessories under the Williams-Sonoma Home brand; and furniture, bedding, bathroom accessories, rugs, curtains, lighting, tabletop, outdoor, and decorative accessories under the Pottery Barn brand. It also provides products designed for creating spaces where children could play, laugh, learn, and grow under the Pottery Barn Kids brand; line of furniture, bedding, lighting, decorative accents, and others for teen bedrooms, dorm rooms, study spaces, and lounges under the PBteen brand; and mixed clean lines, natural materials, and handcrafted collections under West Elm brand. In addition, the company offers a range of assortments of lighting, hardware, furniture, and home décor inspired by history under the Rejuvenation brand; and women’s and men’s accessories, small leather goods, jewelry, key item apparel, paper, entertaining and bar, home décor, and seasonal items under the Mark and Graham brand. It markets its products through e-commerce Websites, direct mail catalogs, and specialty retail stores. As of January 31, 2016, the company operated 618 stores comprising 571 stores in 43 states, Washington, D.C., and Puerto Rico; 27 stores in Canada; 19 stores in Australia; and 1 store in the United Kingdom, as well as 48 franchised stores and/or e-commerce Websites in various countries in the Middle East, the Philippines, and Mexico. Williams-Sonoma, Inc. was founded in 1956 and is headquartered in San Francisco, California.

FINANCIAL RATIOS  of  Williams-Sonoma (WSM)

Valuation Ratios
P/E Ratio 13.6
Price to Sales 0.8
Price to Book 3.3
Price to Tangible Book
Price to Cash Flow 7.9
Price to Free Cash Flow 12.6
Growth Rates
Sales Growth Rate 2.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -3%
Cap. Spend. - 3 Yr. Gr. Rate 0.3%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 237
Management Effectiveness
Return On Assets 12.5%
Ret/ On Assets - 3 Yr. Avg. 13%
Return On Total Capital 24.9%
Ret/ On T. Cap. - 3 Yr. Avg. 25.1%
Return On Equity 24.9%
Return On Equity - 3 Yr. Avg. 25.1%
Asset Turnover 2.1
Profitability Ratios
Gross Margin 37%
Gross Margin - 3 Yr. Avg. 37.5%
EBITDA Margin 12.7%
EBITDA Margin - 3 Yr. Avg. 13.4%
Operating Margin 9.3%
Oper. Margin - 3 Yr. Avg. 9.9%
Pre-Tax Margin 9.3%
Pre-Tax Margin - 3 Yr. Avg. 9.9%
Net Profit Margin 6%
Net Profit Margin - 3 Yr. Avg. 6.3%
Effective Tax Rate 35.4%
Eff/ Tax Rate - 3 Yr. Avg. 36.8%
Payout Ratio 43.9%

WSM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WSM stock intrinsic value calculation we used $4976 million for the last fiscal year's total revenue generated by Williams-Sonoma. The default revenue input number comes from 2017 income statement of Williams-Sonoma. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our WSM stock valuation model: a) initial revenue growth rate of 5.9% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for WSM is calculated based on our internal credit rating of Williams-Sonoma, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Williams-Sonoma.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of WSM stock the variable cost ratio is equal to 89.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for WSM stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 200% for Williams-Sonoma.

Corporate tax rate of 27% is the nominal tax rate for Williams-Sonoma. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the WSM stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for WSM are equal to 17.8%.

Life of production assets of 5.4 years is the average useful life of capital assets used in Williams-Sonoma operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for WSM is equal to 2.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $1198 million for Williams-Sonoma - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 84.763 million for Williams-Sonoma is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Williams-Sonoma at the current share price and the inputted number of shares is $4.0 billion.


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COMPANY NEWS

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▶ Williams-Sonoma, Inc. declares quarterly cash dividend   [Jun-16-17 05:00PM  Business Wire]
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▶ J. Crew CEO steps down after 14 years with fashion retailer   [Jun-05-17 08:00PM  American City Business Journals]
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▶ Analysts Find Gold, Dross in Retail Stocks   [Jun-04-17 10:08AM  24/7 Wall St.]
▶ Williams-Sonoma, Inc. Delivers Another Solid Quarter   [May-25-17 05:59PM  Motley Fool]
▶ Williams-Sonoma beats 1Q profit forecasts   [04:33PM  Associated Press]
▶ Williams-Sonoma's earnings beat   [04:24PM  CNBC Videos]
▶ Rising Rates Pose Low Near-Term Risk to Home Retailers   [May-19-17 07:00AM  Morningstar]
▶ WILLIAMS SONOMA TO OPEN NEW STORE IN DALLAS   [May-12-17 09:02AM  Business Wire]
▶ Williams-Sonoma Could Be Cooking Up a Rally   [08:41AM  TheStreet.com]
▶ WILLIAMS SONOMA PRESENTS INDIE CHEFS WEEK NYC   [May-11-17 01:00PM  Business Wire]
▶ NEW WILLIAMS SONOMA OPENS IN MIAMI   [May-05-17 03:28PM  Business Wire]
▶ POTTERY BARN OPENS NEW STORE AT THE LINCOLN IN MIAMI BEACH   [May-03-17 09:00AM  Business Wire]
▶ Williams-Sonoma Trades Ex-Dividend Wednesday   [Apr-24-17 08:43AM  Investopedia]
▶ Williams-Sonoma to open at Mosaic   [Apr-19-17 02:54PM  American City Business Journals]
▶ 3 Stocks Wall Street Hates   [Mar-25-17 02:43PM  at Motley Fool]
▶ Is Williams-Sonoma an Opportunity or Value Trap?   [Mar-24-17 10:22AM  at Investopedia]
▶ Williams-Sonoma Is Set to Gain Share   [Mar-20-17 07:00AM  at Morningstar]
Stock chart of WSM Financial statements of WSM Annual reports of WSM
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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