Williams-Sonoma is a specialty retailer of products for the home with some brands in home furnishings. The Company operates in two segments: ecommerce and retail. The company was founded in 1956 and is based in San Francisco, California.
WSM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Williams Sonoma Inc. To summarize, we found that Williams Sonoma Inc ranked in the 73th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for WSM, they are:
WSM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 26.45% of tickers in our DCF set.
Williams Sonoma Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 46.45. This coverage rate is greater than that of 92.94% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Consumer Cyclical), Williams Sonoma Inc has a reliance on debt greater than only 20.42% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
VIAC, IPG, DISH, MGA, and OI can be thought of as valuation peers to WSM, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.