Price to Earnings (P/E)
since 2005
Calculation
Williams-Sonoma Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net earnings1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 20, 2024 | 19.92 | = | 295.05 | ÷ | 14.81 | 14.81 | = | 949,762 | ÷ | 64,112,265 | |
| Mar 24, 2023 | 6.91 | = | 117.70 | ÷ | 17.03 | 17.03 | = | 1,127,904 | ÷ | 66,228,239 | |
| Mar 28, 2022 | 9.44 | = | 148.55 | ÷ | 15.74 | 15.74 | = | 1,126,337 | ÷ | 71,558,874 | |
| Mar 30, 2021 | 20.60 | = | 184.00 | ÷ | 8.93 | 8.93 | = | 680,714 | ÷ | 76,192,973 | |
| Mar 27, 2020 | 9.12 | = | 42.05 | ÷ | 4.61 | 4.61 | = | 356,062 | ÷ | 77,197,681 | |
| Apr 4, 2019 | 13.98 | = | 59.36 | ÷ | 4.25 | 4.25 | = | 333,684 | ÷ | 78,563,968 | |
| Mar 29, 2018 | 16.94 | = | 52.76 | ÷ | 3.12 | 3.12 | = | 259,545 | ÷ | 83,310,319 | |
| Mar 30, 2017 | 14.91 | = | 52.43 | ÷ | 3.52 | 3.52 | = | 305,387 | ÷ | 86,840,278 | |
| Mar 31, 2016 | 15.74 | = | 54.74 | ÷ | 3.48 | 3.48 | = | 310,068 | ÷ | 89,158,790 | |
| Apr 2, 2015 | 23.62 | = | 79.61 | ÷ | 3.37 | 3.37 | = | 308,854 | ÷ | 91,642,370 | |
| Apr 3, 2014 | 22.40 | = | 66.36 | ÷ | 2.96 | 2.96 | = | 278,902 | ÷ | 94,125,832 | |
| Apr 4, 2013 | 19.29 | = | 50.69 | ÷ | 2.63 | 2.63 | = | 256,730 | ÷ | 97,696,301 | |
| Mar 29, 2012 | 15.87 | = | 37.75 | ÷ | 2.38 | 2.38 | = | 236,931 | ÷ | 99,584,007 | |
| Mar 31, 2011 | 21.23 | = | 40.50 | ÷ | 1.91 | 1.91 | = | 200,227 | ÷ | 104,980,876 | |
| Apr 1, 2010 | 37.52 | = | 27.04 | ÷ | 0.72 | 0.72 | = | 77,442 | ÷ | 107,452,150 | |
| Apr 2, 2009 | 38.72 | = | 11.00 | ÷ | 0.28 | 0.28 | = | 30,024 | ÷ | 105,684,660 | |
| Apr 3, 2008 | 14.20 | = | 26.38 | ÷ | 1.86 | 1.86 | = | 195,757 | ÷ | 105,351,910 | |
| Mar 29, 2007 | 18.22 | = | 34.63 | ÷ | 1.90 | 1.90 | = | 208,868 | ÷ | 109,881,292 | |
| Apr 7, 2006 | 22.85 | = | 42.74 | ÷ | 1.87 | 1.87 | = | 214,866 | ÷ | 114,893,520 | |
| Apr 15, 2005 | 20.32 | = | 33.66 | ÷ | 1.66 | 1.66 | = | 191,234 | ÷ | 115,426,679 |
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), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Williams-Sonoma Inc. Annual Report.
The financial trajectory from 2005 to 2024 reveals a complex relationship between earnings growth and market valuation, characterized by periods of stability interrupted by sharp volatility during economic cycles.
- Valuation Volatility and Economic Impact
- A significant spike in the P/E ratio is observed between 2009 and 2010, reaching peaks of 38.72 and 37.52. This expansion was not driven by an increase in share price—which fell to a period low of 11.00 USD in 2009—but rather by a severe contraction in earnings per share, which dropped to 0.28 USD. This indicates a valuation distortion common during periods of acute earnings distress.
- Earnings Growth and Multiple Stability
- From 2011 to 2019, the P/E ratio remained relatively range-bound, generally fluctuating between 13.98 and 23.62. During this interval, earnings per share demonstrated a consistent upward trend, growing from 1.91 USD to 4.25 USD. The market valuation largely tracked this growth, maintaining a stable multiple as the company expanded its profitability.
- Valuation Compression and Divergence
- A notable divergence occurred between 2020 and 2023. Despite earnings per share reaching record highs—peaking at 17.03 USD in 2023—the P/E ratio experienced significant compression, falling to a low of 6.91 in 2023. This suggests that while the company achieved unprecedented profitability, the market's willingness to pay a premium for those earnings declined sharply during this period.
- Recent Valuation Recovery
- In 2024, a correction in the valuation trend is evident. The P/E ratio rebounded to 19.92, coinciding with a substantial increase in the share price to 295.05 USD. This return to historical norms suggests a market realignment where the share price has once again adjusted upward to reflect the company's elevated earnings capacity.
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Comparison to Competitors
Williams-Sonoma Inc., P/E, long-term trends, comparison to competitors
| Williams-Sonoma Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Mar 20, 2024 | 19.92 | 40.99 | 24.80 | 18.81 | 24.63 |
| Mar 24, 2023 | 6.91 | 58.66 | 17.09 | 17.65 | 25.22 |
| Mar 28, 2022 | 9.44 | — | 19.94 | 17.84 | 22.20 |
| Mar 30, 2021 | 20.60 | 48.08 | 24.51 | 22.36 | 881.78 |
| Mar 27, 2020 | 9.12 | 78.20 | 17.38 | 11.96 | 17.13 |
| Apr 4, 2019 | 13.98 | 86.30 | 18.87 | 37.80 | 21.11 |
| Mar 29, 2018 | 16.94 | 79.30 | 23.51 | 20.26 | 20.19 |
| Mar 30, 2017 | 14.91 | 228.25 | 22.37 | 22.62 | 22.11 |
| Mar 31, 2016 | 15.74 | 166.52 | 23.32 | 26.67 | 22.87 |
| Apr 2, 2015 | 23.62 | 463.73 | 23.15 | 26.24 | 21.62 |
| Apr 3, 2014 | 22.40 | — | 20.18 | 21.79 | 20.15 |
| Apr 4, 2013 | 19.29 | 601.07 | 22.86 | 21.13 | 17.99 |
| Mar 29, 2012 | 15.87 | — | 19.49 | 20.46 | 19.73 |
| Mar 31, 2011 | 21.23 | 129.38 | 18.15 | 17.66 | 14.54 |
| Apr 1, 2010 | 37.52 | 67.02 | 20.76 | 19.70 | 14.57 |
| Apr 2, 2009 | 38.72 | 61.80 | 18.59 | 12.26 | 12.02 |
| Apr 3, 2008 | 14.20 | 39.07 | 11.24 | 12.74 | 18.61 |
| Mar 29, 2007 | 18.22 | 65.85 | 12.59 | 15.42 | 16.30 |
| Apr 7, 2006 | 22.85 | 88.17 | 15.57 | 18.31 | 16.91 |
| Apr 15, 2005 | 20.32 | 45.52 | 16.29 | 19.15 | 17.81 |
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), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
Williams-Sonoma Inc., P/E, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Williams-Sonoma Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Mar 20, 2024 | 19.92 | 35.33 |
| Mar 24, 2023 | 6.91 | 39.66 |
| Mar 28, 2022 | 9.44 | 63.32 |
| Mar 30, 2021 | 20.60 | 40.84 |
| Mar 27, 2020 | 9.12 | 49.11 |
| Apr 4, 2019 | 13.98 | 48.49 |
| Mar 29, 2018 | 16.94 | 45.41 |
| Mar 30, 2017 | 14.91 | 60.50 |
| Mar 31, 2016 | 15.74 | 47.75 |
| Apr 2, 2015 | 23.62 | 45.72 |
| Apr 3, 2014 | 22.40 | 38.28 |
| Apr 4, 2013 | 19.29 | 39.66 |
| Mar 29, 2012 | 15.87 | 37.17 |
| Mar 31, 2011 | 21.23 | 26.94 |
| Apr 1, 2010 | 37.52 | 27.21 |
| Apr 2, 2009 | 38.72 | 21.68 |
| Apr 3, 2008 | 14.20 | 14.47 |
| Mar 29, 2007 | 18.22 | 16.25 |
| Apr 7, 2006 | 22.85 | 17.92 |
| Apr 15, 2005 | 20.32 | 18.45 |
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), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).
Comparison to Industry (Consumer Discretionary)
Williams-Sonoma Inc., P/E, long-term trends, comparison to industry (consumer discretionary)
| Williams-Sonoma Inc. | Consumer Discretionary | |
|---|---|---|
| Mar 20, 2024 | 19.92 | 39.33 |
| Mar 24, 2023 | 6.91 | 33.63 |
| Mar 28, 2022 | 9.44 | 46.01 |
| Mar 30, 2021 | 20.60 | 39.27 |
| Mar 27, 2020 | 9.12 | 73.74 |
| Apr 4, 2019 | 13.98 | 39.37 |
| Mar 29, 2018 | 16.94 | 33.13 |
| Mar 30, 2017 | 14.91 | 47.03 |
| Mar 31, 2016 | 15.74 | 29.19 |
| Apr 2, 2015 | 23.62 | 24.70 |
| Apr 3, 2014 | 22.40 | 29.48 |
| Apr 4, 2013 | 19.29 | 26.50 |
| Mar 29, 2012 | 15.87 | 20.90 |
| Mar 31, 2011 | 21.23 | 11.38 |
| Apr 1, 2010 | 37.52 | 17.54 |
| Apr 2, 2009 | 38.72 | 18.66 |
| Apr 3, 2008 | 14.20 | 303.41 |
| Mar 29, 2007 | 18.22 | 24.33 |
| Apr 7, 2006 | 22.85 | 117.34 |
| Apr 15, 2005 | 20.32 | 17.54 |
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), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29), 10-K (reporting date: 2016-01-31), 10-K (reporting date: 2015-02-01), 10-K (reporting date: 2014-02-02), 10-K (reporting date: 2013-02-03), 10-K (reporting date: 2012-01-29), 10-K (reporting date: 2011-01-30), 10-K (reporting date: 2010-01-31), 10-K (reporting date: 2009-02-01), 10-K (reporting date: 2008-02-03), 10-K (reporting date: 2007-01-28), 10-K (reporting date: 2006-01-29), 10-K (reporting date: 2005-01-30).