WMB
The Williams Companies, Inc. (WMB)
Last Price$57.6(1.0%)
Market Cap$70.8B
DCF value
$75.9
Undervalued (DCF value)
31.8%
Discount Rate
6.8%
Long-Term Growth Rate
1.5%
Stock quality
6/10
Good

WMB DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 ActualDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 EstimateDec'35 Terminal
% growth
7,719.0
(5.9%)
10,627.0
37.7%
10,965.0
3.2%
10,907.0
(0.5%)
10,503.0
(3.7%)
11,494.5
9.4%
12,541.3
9.1%
13,147.0
4.8%
16,485.1
25.4%
20,108.2
22.0%
23,841.2
18.6%
27,453.6
15.2%
30,676.3
11.7%
33,230.4
8.3%
34,863.0
4.9%
35,386.0
1.5%
2,202.0
28.5%
2,631.0
24.8%
3,018.0
27.5%
4,311.0
39.5%
3,339.0
31.8%
4,122.9
35.9%
4,498.3
35.9%
4,715.6
35.9%
5,912.9
35.9%
7,212.5
35.9%
8,551.5
35.9%
9,847.2
35.9%
11,003.1
35.9%
11,919.2
35.9%
12,504.8
35.9%
12,692.4
35.9%
NOPAT
% effective tax rate
1,574.0
20.4%
1,982.5
18.7%
2,513.4
22.9%
3,327.4
30.5%
2,623.3
25.0%
3,239.2
28.2%
3,534.2
28.2%
3,704.9
28.2%
4,645.6
28.2%
5,666.6
28.2%
6,718.6
28.2%
7,736.6
28.2%
8,644.8
28.2%
9,364.5
28.2%
9,824.6
28.2%
9,972.0
28.2%
% of revenue
1,756.0
22.7%
1,887.0
17.8%
2,060.0
18.8%
2,071.0
19.0%
2,219.0
21.1%
2,256.8
19.6%
2,462.4
19.6%
2,581.3
19.6%
3,236.7
19.6%
3,948.1
19.6%
4,681.0
19.6%
5,390.3
19.6%
6,023.0
19.6%
6,524.5
19.6%
6,845.0
19.6%
6,947.7
19.6%
% of revenue
(1,275.0)
(16.5%)
(1,247.0)
(11.7%)
(2,283.0)
(20.8%)
(2,567.0)
(23.5%)
(2,573.0)
(24.5%)
(2,638.1)
(23.0%)
(2,878.4)
(23.0%)
(3,017.4)
(23.0%)
(3,783.6)
(23.0%)
(4,615.1)
(23.0%)
(5,471.9)
(23.0%)
(6,301.0)
(23.0%)
(7,040.6)
(23.0%)
(7,626.8)
(23.0%)
(8,001.5)
(23.0%)
(8,121.5)
(23.0%)
(323.0)
(4.2%)
(309.0)
(2.9%)
(379.0)
(3.5%)
88.0
0.8%
0.0
0.0%
(101.5)
(0.9%)
(110.8)
(0.9%)
(116.1)
(0.9%)
(145.6)
(0.9%)
(177.6)
(0.9%)
(210.6)
(0.9%)
(242.5)
(0.9%)
(270.9)
(0.9%)
(293.5)
(0.9%)
(307.9)
(0.9%)
(312.5)
(0.9%)
Free Cash Flow to Firm (FCFF)
% of revenue
1,732.0
22.4%
2,313.5
21.8%
1,911.4
17.4%
2,919.4
26.8%
2,269.3
21.6%
2,756.4
24.0%
3,007.4
24.0%
3,152.7
24.0%
3,953.2
24.0%
4,822.0
24.0%
5,717.2
24.0%
6,583.4
24.0%
7,356.2
24.0%
7,968.7
24.0%
8,360.2
24.0%
8,485.6
24.0%
% of FCFF used in calculation
83.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.97
0.91
0.85
0.79
0.74
0.69
0.65
0.61
0.57
0.53
Discounted FCFF (DFCFF)
2,213.7
2,723.0
2,671.6
3,135.2
3,579.2
3,971.7
4,280.4
4,476.4
4,538.3
4,456.2

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WMB DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
36.0B
30.0%
Terminal Value (TV)
157.8B
Discounted TV
% share of EV
84.1B
70.0%
Total Debt
26.9B
Shares outstanding
1,228.5M
FX rate
1.0
31.8% undervalued

Equity Value Bridge

WMB DCF Financials

Revenue
$10.5B -> $34.9B 12.7% CAGR
Operating Income
$3,339.0M -> $12.5B 14.1% CAGR
FCFF
$2,269.3M -> $8,360.2M 13.9% CAGR

WMB DCF sensitivity

DCF value
Long-term Terminal growth rate
0.5%
1.0%
1.5%
2.0%
2.5%
WACC
6.0%
$80.0
$80.0
$80.0
$80.0
$80.0
6.5%
$71.0
$77.0
$78.0
$78.0
$78.0
6.8%
$65.0
$70.0
$76.0
$76.0
$76.0
7.5%
$56.0
$60.0
$64.0
$70.0
$73.0
8.0%
$50.0
$53.0
$57.0
$61.0
$66.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
0.5%
1.0%
1.5%
2.0%
2.5%
WACC
6.0%
39.0%
39.0%
39.0%
39.0%
39.0%
6.5%
23.0%
34.0%
35.0%
35.0%
35.0%
6.8%
13.0%
22.0%
32.0%
32.0%
32.0%
7.5%
(3.0%)
4.0%
11.0%
22.0%
27.0%
8.0%
(13.0%)
(8.0%)
(1.0%)
6.0%
15.0%

Explore more intrinsic value tools hub for WMB

FAQ

What is The Williams Companies, Inc. DCF (discounted cash flow) valuation?

As of Mar 03, 2025, The Williams Companies, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $75.9. This suggests it may be undervalued by 31.8% compared to its current price of around $57.6, using a WACC of 6.8% and growth rates of 1.5%.

What is The Williams Companies, Inc. WACC?

As of Mar 03, 2025, The Williams Companies, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 6.8%.

What is The Williams Companies, Inc. Enterprise Value?

As of Mar 03, 2025, The Williams Companies, Inc.'s Enterprise Value (EV) is approximately $120.2B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.