WMB Valuation

Williams Companies Inc

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57.070

-0.73(-1.263%)1D

Overview
Forecast
Valuation
Earnings

WMB Relative Valuation

WMB's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, WMB is overvalued; if below, it's undervalued.

Historical Valuation

Williams Companies Inc (WMB) is now in the Overvalued zone, suggesting that its current forward PE ratio of 24.93 is considered Overvalued compared with the five-year average of 21.01. The fair price of Williams Companies Inc (WMB) is between 41.12 to 54.52 according to relative valuation methord. Compared to the current price of 57.80 USD , Williams Companies Inc is Overvalued By 6.02%.

Relative Value

Fair Zone

41.12-54.52

Current Price：57.80

6.02%

Overvalued

25.18

Trailing

Forward

12.53

EV/EBITDA

Williams Companies Inc. (WMB) has a current EV/EBITDA of 12.53. The 5-year average EV/EBITDA is 10.61. The thresholds are as follows: Strongly Undervalued below 8.19, Undervalued between 8.19 and 9.40, Fairly Valued between 11.82 and 9.40, Overvalued between 11.82 and 13.03, and Strongly Overvalued above 13.03. The current Forward EV/EBITDA of 12.53 falls within the Overvalued range.

22.11

EV/EBIT

Williams Companies Inc. (WMB) has a current EV/EBIT of 22.11. The 5-year average EV/EBIT is 20.83. The thresholds are as follows: Strongly Undervalued below 16.34, Undervalued between 16.34 and 18.58, Fairly Valued between 23.07 and 18.58, Overvalued between 23.07 and 25.31, and Strongly Overvalued above 25.31. The current Forward EV/EBIT of 22.11 falls within the Historic Trend Line -Fairly Valued range.

6.08

Williams Companies Inc. (WMB) has a current PS of 6.08. The 5-year average PS is 4.12. The thresholds are as follows: Strongly Undervalued below 2.08, Undervalued between 2.08 and 3.10, Fairly Valued between 5.14 and 3.10, Overvalued between 5.14 and 6.16, and Strongly Overvalued above 6.16. The current Forward PS of 6.08 falls within the Overvalued range.

11.66

P/OCF

Williams Companies Inc. (WMB) has a current P/OCF of 11.66. The 5-year average P/OCF is 8.60. The thresholds are as follows: Strongly Undervalued below 4.91, Undervalued between 4.91 and 6.75, Fairly Valued between 10.45 and 6.75, Overvalued between 10.45 and 12.30, and Strongly Overvalued above 12.30. The current Forward P/OCF of 11.66 falls within the Overvalued range.

34.92

P/FCF

Williams Companies Inc. (WMB) has a current P/FCF of 34.92. The 5-year average P/FCF is 17.30. The thresholds are as follows: Strongly Undervalued below 5.34, Undervalued between 5.34 and 11.32, Fairly Valued between 23.28 and 11.32, Overvalued between 23.28 and 29.26, and Strongly Overvalued above 29.26. The current Forward P/FCF of 34.92 falls within the Strongly Overvalued range.

Williams Companies Inc (WMB) has a current Price-to-Book (P/B) ratio of 5.63. Compared to its 3-year average P/B ratio of 4.18 , the current P/B ratio is approximately 34.68% higher. Relative to its 5-year average P/B ratio of 3.63, the current P/B ratio is about 54.99% higher. Williams Companies Inc (WMB) has a Forward Free Cash Flow (FCF) yield of approximately 2.59%. Compared to its 3-year average FCF yield of 5.94%, the current FCF yield is approximately -56.31% lower. Relative to its 5-year average FCF yield of 6.61% , the current FCF yield is about -60.74% lower.

5.69

P/B

Median3y

4.18

Median5y

3.63

2.54

FCF Yield

Median3y

5.94

Median5y

6.61

Competitors Valuation Multiple

The average P/S ratio for WMB's competitors is 3.36, providing a benchmark for relative valuation. Williams Companies Inc Corp (WMB) exhibits a P/S ratio of 6.08, which is 81.20% above the industry average. Given its robust revenue growth of 11.36%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

WMB.N

Williams Companies Inc

Enterprise Products Partners LP

Performance Decomposition

Market capitalization of WMB increased by 27.11% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 17.28 to 21.24.

The secondary factor is the Revenue Growth, contributed 11.36%to the performance.

Overall, the performance of WMB in the past 1 year is driven by Margin Expansion. Which is more sustainable.

11.36%

2.47B → 2.75B

Revenue Growth

22.92%

17.28 → 21.24

Margin Expansion

-7.17%

31.32 → 29.08

P/E Change

27.11%