The Williams Companies, Inc. (WMB) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-27.7%

$51.96

vs $71.90 price

Levered DCF

$45.56

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.32

Distress zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	28.09×	29.74×	13.34×	19.58×	20.83×	117.94×	33.89×	-137.81×
P/B	5.73×	5.31×	3.42×	3.49×	2.77×	2.07×	2.15×	1.46×
P/S	6.14×	6.28×	3.89×	3.66×	2.98×	3.15×	3.51×	2.47×
EV / EBITDA	13.86×	14.16×	8.65×	11.03×	10.53×	14.68×	12.8×	13.8×
Gross margin	42.9%	58.7%	62.4%	50.2%	44.7%	56.8%	53.9%	47.4%
Operating margin	36.8%	31.8%	39.5%	27.5%	24.8%	28.5%	23.4%	8.8%
Net margin	21.9%	21.2%	29.1%	18.7%	14.3%	2.7%	10.4%	-1.8%
Current ratio	0.53×	0.5×	0.77×	0.78×	0.91×	0.62×	0.4×	0.81×
Debt / equity	2.3×	2.18×	2.13×	1.99×	2.07×	1.9×	1.67×	1.53×
Interest coverage	3.05×	2.45×	3.49×	2.63×	2.23×	1.88×	1.62×	0.69×
Dividend yield	3.3%	3.5%	5.1%	5.2%	6.3%	8.0%	6.4%	6.5%
Payout ratio	93.3%	104.1%	68.5%	101.1%	131.3%	919.9%	216.7%	-894.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	20.4%	17.9%	25.6%	17.8%	13.3%	1.8%	6.4%	-1.1%
Return on invested capital	6.2%	5.1%	6.7%	5.6%	4.4%	3.7%	3.0%	1.0%
Return on assets	4.5%	4.1%	6.0%	4.2%	3.2%	0.5%	1.8%	-0.3%
Free cash flow yield	1.4%	3.6%	7.9%	6.5%	8.5%	9.1%	5.4%	0.1%
Earnings yield	3.6%	3.4%	7.5%	5.1%	4.8%	0.9%	3.0%	-0.7%
Enterprise value	$102.7B	$93B	$66.7B	$62.8B	$53.6B	$46.5B	$50.7B	$43.7B
Net debt / EBITDA	3.96×	4.11×	3.15×	3.99×	4.32×	7×	5.55×	7.02×
Cash conversion cycle (days)	-38	-48	-43	-43	-17	9	3	-1