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The Williams Companies, Inc. — Intrinsic Value & Fair Price

WMB
NYSEEnergyOil & Gas MidstreamCIK 0000107263williams.comAbout WMB
Last close · Oct 16, 202671.28+2.06 (+2.98%)
Market cap$87.2B
Model value · DCF · Perpetuity growth · 5y
36.13
Williams Companies closed at $71.28 — overvalued by 97% vs model.
14.12the model's range136.16

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
18.68 – 64.99
Wall St. target
87.50 19% below
Above model, 1y
18 of 20 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
2.91%
Past 2 years
low 2.55%high 4.28%
Dividends per share, a year at a time
$1.63Sep ’21$1.69Sep ’22$1.77Sep ’23$1.87Sep ’24$1.98Sep ’25$2.08TTM
Dividends / free cash flow, FY2025
243.0%
Raised
9 years in a row
Growth, 5 yrs
4.9% a year
Last change
+5.0% · Mar 2026
Every payment, with ex-dates · latest $0.525, paid Sep 28, 2026

Research on WMB

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How it is valued

Valued asMature & stable
Moderate growth (~11% recent)Moderate margins (18% net margin)Pays dividendsHighly cyclical earningsHigh leverage (D/E 2.3x)
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for mature companies
P/E
33.3×
EV / EBITDA
12.6×
FCF yield
1.2%
Dividend yield, TTM
2.91%
Beta
0.66
Cost of capital (WACC)
7.18%
Full financials

Analyst actions

third-party, quoted
10-13Raymond James · target85.00
10-01Barclays · target82.00
09-22Williams Trading · target92.00
04-20Goldman Sachs · “Buy” from “Neutral”upgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
Side by side:vs KMI

The weekly

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About Williams Companies

The Williams Companies, Inc., alongside its subsidiaries, operates as a prominent energy infrastructure entity, primarily conducting business throughout the United States. The company’s operations are organized into four key segments: Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services. The Transmission & Gulf of Mexico division manages crucial natural gas pipelines such as Transco and Northwest, in addition to natural gas gathering and processing, and crude oil production handling and transportation assets situated in the Gulf Coast. This segment also oversees various petrochemical and feedstock pipelines. Focusing on midstream activities, the Northeast G&P segment handles gathering, processing, and fractionation within the Marcellus Shale region, predominantly in Pennsylvania and New York, and the Utica Shale region of eastern Ohio. The West segment delivers gas gathering, processing, and treating services across the Rocky Mountain areas of Colorado and Wyoming, the Barnett Shale in north-central Texas, the Eagle Ford Shale in South Texas, the Haynesville Shale in northwest Louisiana, and the expansive Mid-Continent region (including the Anadarko, Arkoma, and Permian basins). This segment also operates natural gas liquid (NGL) fractionation and storage facilities located near Conway in central Kansas. The Gas & NGL Marketing Services segment provides comprehensive wholesale marketing, trading, storage, and transportation of natural gas to utilities, municipalities, power generators, and producers, while also offering risk and asset management and NGL marketing services. The company possesses and operates an extensive network, including 30,000 miles of pipelines, 29 processing facilities, 7 fractionation facilities, and an approximate NGL storage capacity of 23 million barrels. The Williams Companies, Inc. was established in 1908 and maintains its headquarters in Tulsa, Oklahoma.

CEO
Chad J. Zamarin
Headquarters
Tulsa, OK
Employees
5,987
IPO
1981-12-31
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.