Based on the provided data and recent analyst ratings, here's a concise analysis of WMB's valuation:
Valuation Analysis
WMB currently shows elevated valuation metrics with P/E ratio at 29.79 for Q4 2024, significantly higher than its Q1 2024 level of 15.99. The EV/EBITDA ratio has also increased to 16.40 in Q4 from 13.84 in Q1 2024, suggesting the stock has become more expensive.
Analyst Consensus
Recent analyst actions indicate a cautiously optimistic stance. The stock has received a "Moderate Buy" consensus with price targets ranging from $51 to $60, suggesting limited upside potential from current levels around $57.58.
Key Valuation Concerns
- P/S ratio has increased to 6.13 in Q4 2024 from 4.69 in Q1 2024
- P/B ratio expanded to 5.32 from 3.83 over the same period
- Dividend yield has decreased to 3.51% from 4.66%, indicating higher valuations
Market Performance
The stock has significantly outperformed the broader market, rallying 65.8% over the past 52 weeks compared to the S&P 500's 22.6% gain, suggesting potential overvaluation at current levels.
Based on these metrics and recent analyst ratings, WMB appears overvalued at current prices, particularly given the significant expansion in multiple valuation metrics throughout 2024 and limited upside potential indicated by analyst price targets.