Enterprise Value (EV)
Current Enterprise Value (EV)
Williams-Sonoma Inc., current enterprise value calculation
| Current share price (P) | $287.81 |
| No. shares of common stock outstanding | 64,308,083 |
| US$ in thousands | |
| Common equity (market value)1 | 18,508,509) |
| Add: Preferred stock: $0.01 par value; none issued (per books) | —) |
| Total equity | 18,508,509) |
| Add: Current debt (per books) | —) |
| Add: Long-term debt (per books) | —) |
| Total equity and debt | 18,508,509) |
| Less: Cash and cash equivalents | 1,262,007) |
| Enterprise value (EV) | 17,246,502) |
Based on: 10-K (reporting date: 2024-01-28).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 287.81 × 64,308,083
Historical Enterprise Value (EV)
Williams-Sonoma Inc., EV calculation
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 Closing price as at the filing date of Williams-Sonoma Inc. Annual Report.
3 2024 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 295.05 × 64,112,265
An analysis of the Enterprise Value (EV) and equity metrics reveals significant valuation volatility over the six-year period, characterized by two major expansionary cycles and a period of contraction.
- Market Valuation Trends
- Common equity market value experienced a decline between February 2019 and February 2020, decreasing from approximately 4.66 billion to 3.25 billion. This was followed by a substantial surge in January 2021, where valuation reached 14.02 billion. After a two-year corrective phase that saw values drop to 7.80 billion by January 2023, the valuation reached a peak of 18.92 billion by January 2024.
- Enterprise Value (EV) Dynamics
- Enterprise value closely mirrors the fluctuations observed in market capitalization. The EV shifted from 4.62 billion in 2019 to a low of 3.11 billion in 2020, before ascending to 13.12 billion in 2021. A subsequent decline resulted in a valuation of 7.43 billion in 2023, before reaching a period high of 17.65 billion in 2024. The high correlation between market equity and EV indicates that the total value of the business is primarily driven by equity market sentiment rather than adjustments in debt levels.
- Capital Structure and Debt Integration
- A convergence is observed between total equity and total equity and debt over time. While a discrepancy existed between February 2019 and January 2021, these two metrics became identical starting in January 2022 and remained so through January 2024. This pattern suggests a strategic shift toward a debt-free capital structure or the complete elimination of long-term debt obligations.
- Net Cash Position Indicators
- Enterprise value remained consistently lower than the market value of common equity throughout the analyzed timeframe. This consistent gap indicates a net cash position, where the company's cash and cash equivalents exceed its total debt, effectively reducing the enterprise value below the total market capitalization.
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