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Williams-Sonoma (Williams-Sonoma) Earnings Yield (Joel Greenblatt) %

: 9.93% (As of Jan. 2024)
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Williams-Sonoma's Enterprise Value for the quarter that ended in Jan. 2024 was $12,535 Mil. Williams-Sonoma's EBIT for the trailing twelve months (TTM) ended in Jan. 2024 was $1,244 Mil. Williams-Sonoma's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2024 was 9.93%.

The historical rank and industry rank for Williams-Sonoma's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

WSM' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 5.52   Med: 8.94   Max: 17.51
Current: 6.73

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Williams-Sonoma was 17.51%. The lowest was 5.52%. And the median was 8.94%.

WSM's Earnings Yield (Joel Greenblatt) % is ranked better than
60.27% of 1120 companies
in the Retail - Cyclical industry
Industry Median: 4.795 vs WSM: 6.73

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Williams-Sonoma's Forward Rate of Return (Yacktman) % for the quarter that ended in Jan. 2024 was 27.07%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Williams-Sonoma Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Williams-Sonoma's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Williams-Sonoma Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.06 8.95 12.12 14.97 9.93

Williams-Sonoma Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.97 15.46 13.11 12.15 9.93

Competitive Comparison

For the Specialty Retail subindustry, Williams-Sonoma's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Williams-Sonoma Earnings Yield (Joel Greenblatt) % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Williams-Sonoma's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Williams-Sonoma's Earnings Yield (Joel Greenblatt) % falls into.



Williams-Sonoma Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Williams-Sonomas Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Jan. 2024 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=1244.193/12534.77589
=9.93 %

Williams-Sonoma's EBIT for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,244 Mil.



Williams-Sonoma  (NYSE:WSM) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Williams-Sonoma Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Williams-Sonoma's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Williams-Sonoma (Williams-Sonoma) Business Description

Traded in Other Exchanges
Address
3250 Van Ness Avenue, San Francisco, CA, USA, 94109
With a retail and direct-to-consumer presence, Williams-Sonoma is a player in the $300 billion domestic home category, focused on expanding its exposure in the B2B, marketplace, and franchise areas. Namesake Williams-Sonoma (163 stores) offers high-end cooking essentials, while Pottery Barn (191) provides casual home accessories. Brand extensions include Pottery Barn Kids (46) and PBteen. West Elm (123) is an emerging concept for young professionals, and Rejuvenation (10) offers lighting and house parts. Williams-Sonoma also has a business-to-business team that supports projects that range from residential to large-scale commercial.
Executives
Laura Alber officer: PRESIDENT, POTTERY BARN BRANDS
Karalyn Smith officer: EVP CHIEF TALENT OFFICER C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Marta Benson officer: PRESIDENT POTTERY BARN BRAND C/O RESTORATION HARDWARE, 15 KOCH ROAD, SUITE J, CORTE MADERA CA 94925
Jeremy Brooks officer: CHIEF ACCOUNTING OFFICER C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Jeffrey Howie officer: EVP CHIEF FINANCIAL OFFICER C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Julie Whalen officer: VP, CONTROLLER 3260 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Ryan Ross officer: PRESIDENT WS BRAND 3250 VAN NESS AVE., SAN FRANCISCO CA 94109
Sabrina Simmons director GAP INC., 2 FOLSOM STREET, SAN FRANCISCO CA 94105
Anne A. Finucane director ONE CVS DRIVE, WOONSOCKET RI 02895
David Randolph King officer: SVP GENERAL COUNSEL 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Paula B Pretlow director C/O CION ARES MANAGEMENT LLC, 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Alex Bellos officer: PRESIDENT WEST ELM BRAND C/O WILLIAMS-SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Esi Eggleston Bracey director C/O SIX FLAGS ENTERTAINMENT CORPORATION, 1000 BALLPARK WAY, SUITE 400, ARLINGTON TX 76011
Grace Puma Whiteford director C/O WILLIAM SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Bellamy Adrian D P director C/O GAP, INC., 2 FOLSOM ST., SAN FRANCISCO CA 94105