Ulta Beauty Inc vs Williams-Sonoma Inc

Ulta Beauty Inc (ULTA) is fairly valued and Williams-Sonoma Inc (WSM) is overvalued.

Both trade above our estimate of their intrinsic value. ULTA is the closer of the two: -2%, against -96% for WSM.

Values as of the 22 Sept 2026 close.

Ulta Beauty Inc (ULTA)

Discounting its cash flows at 9.4% (average of 3 methods) values the shares at $541.68; the price of $553.86 is 2% above that value, and 75% of that value comes from beyond year five.

Leak Score 67/100 on 9 of 12 signals

Williams-Sonoma Inc (WSM)

Discounting its cash flows at 11.3% (average of 3 methods) values the shares at $118.54; the price of $232.69 is 96% above that value, and 68% of that value comes from beyond year five.

Leak Score 71/100 on 9 of 12 signals

MetricULTAWSM
VerdictFairly valuedOvervalued
Price$553.86$232.69
Intrinsic value$541.68$118.54
Margin of safety-2%-96%
Leak Score67/100 (9/12)71/100 (9/12)
Market cap$23.7B$27.4B
Revenue growth, 5 years15.0%2.9%
Operating margin12.6%19.2%
Net margin9.3%14.7%
Return on equity46.1%55.0%
Debt to equity0.950.71
P/E20.2x23.8x
Forward P/E17.2x22.1x
P/B9.0x12.8x
Dividend yield1.3%

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