Upside case
Bull case
$111+51.0%
WMB would need investors to value it at roughly 48x earnings — about 16x more generous than today's 32x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
The Williams Companies, Inc. (WMB) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
34
analysts
27 bullish · 0 bearish · 34 covering WMB
Strong Buy
0
Buy
27
Hold
7
Sell
0
Strong Sell
0
Consensus Target
$79
+7.1% vs today
Scenario Range
$20 – $111
Model bear to bull value window
Coverage
34
Published analyst ratings
Valuation Context
31.6x
Forward P/E · Market cap $90.2B
WMB price targets
Three scenarios for where WMB stock could go
Current
~$74
Confidence
51 / 100
Updated
May 1, 2026
Where we are now
Current · $74
Bear
$20
Base
$96
Bull
$111
Market caseClosest to today
Base case
$96+30.0%
At 41x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$20-72.2%
If investor confidence fades or macro conditions deteriorate, a 23x multiple contraction could push WMB down roughly 72% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
The Williams Companies, Inc.
WMB · NYSEEnergyOil & Gas MidstreamDecember year-end
The Williams Companies is a major natural gas pipeline operator and energy infrastructure company in the United States. It generates revenue primarily through fee-based contracts for transporting natural gas through its extensive pipeline network—including its flagship Transco system—and from natural gas gathering, processing, and fractionation services across key shale regions. The company's competitive advantage lies in its strategically located, irreplaceable pipeline assets that connect major supply basins to high-demand markets, creating a natural monopoly in critical energy corridors.
Market Cap
$90.2B
Revenue TTM
$11.9B
Net Income TTM
$2.8B
Net Margin
23.8%
WMB Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
67%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+7.0%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 1 of 4Q3 2025
EPS
$0.46/$0.48
Revenue
$2.8B/$2.7B
Q4 2025
EPS
$0.49/$0.52
Revenue
$2.9B/$2.9B
Q1 2026
EPS
$0.55/$0.57
Revenue
$3.2B/$3.0B
Q2 2026
EPS
$0.73/$0.63
Revenue
$3.0B/$3.3B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.46/$0.48 | -4.2% | $2.8B/$2.7B | +1.6% |
| Q4 2025 | $0.49/$0.52 | -5.0% | $2.9B/$2.9B | +1.4% |
| Q1 2026 | $0.55/$0.57 | -4.0% | $3.2B/$3.0B | +6.0% |
| Q2 2026 | $0.73/$0.63 | +15.1% | $3.0B/$3.3B | -7.6% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$13.0B
+8.9% YoY
FY2
$14.2B
+9.7% YoY
EPS Outlook
FY1
$2.49
+7.2% YoY
FY2
$2.78
+11.7% YoY
Trailing FCF (TTM)$722M
FCF Margin: 6.1%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
WMB beat EPS estimates in 1 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
WMB Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $10.0B
Product Mix
Latest annual revenue by segment or product family
Gas & NGL Marketing Services
71.6%
+44.2% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
West
100.0%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
Gas & NGL Marketing Services is the largest disclosed segment at 71.6% of FY 2025 revenue, up 44.2% YoY.
West is the largest reported region at 100.0%, with no year-over-year comparison yet.
WMB Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Overvalued
Fair value est. $44 — implies -41.3% from today's price.
Premium to Fair Value
41.3%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
WMB
34.5x
vs
S&P 500
25.2x
+37% premium
vs Energy Trailing P/E
WMB
34.5x
vs
Energy
16.9x
+104% premium
vs WMB 5Y Avg P/E
Today
34.5x
vs
5Y Average
22.4x
+54% premium
Forward PE
31.6x
S&P 500
19.1x
+66%
Energy
13.2x
+139%
5Y Avg
—
—
Trailing PE
34.5x
S&P 500
25.2x
+37%
Energy
16.9x
+104%
5Y Avg
22.4x
+54%
PEG Ratio
0.52x
S&P 500
1.75x
-70%
Energy
0.52x
0%
5Y Avg
—
—
EV/EBITDA
17.7x
S&P 500
15.3x
+16%
Energy
8.1x
+117%
5Y Avg
13.4x
+32%
Price/FCF
89.8x
S&P 500
21.3x
+321%
Energy
14.1x
+535%
5Y Avg
28.1x
+220%
Price/Sales
7.5x
S&P 500
3.1x
+141%
Energy
1.6x
+383%
5Y Avg
4.6x
+64%
Dividend Yield
2.71%
S&P 500
1.88%
+44%
Energy
2.97%
-9%
5Y Avg
4.67%
-42%
| Metric | WMB | S&P 500 | Energy | 5Y Avg WMB |
|---|---|---|---|---|
| Forward PE | 31.6x | 19.1x+66% | 13.2x+139% | — |
| Trailing PE | 34.5x | 25.2x+37% | 16.9x+104% | 22.4x+54% |
| PEG Ratio | 0.52x | 1.75x-70% | 0.52x | — |
| EV/EBITDA | 17.7x | 15.3x+16% | 8.1x+117% | 13.4x+32% |
| Price/FCF | 89.8x | 21.3x+321% | 14.1x+535% | 28.1x+220% |
| Price/Sales | 7.5x | 3.1x+141% | 1.6x+383% | 4.6x+64% |
| Dividend Yield | 2.71% | 1.88% | 2.97% | 4.67% |
WMB trades above S&P 500 benchmarks on 5 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolWMB Financial Health
Verdict
Strong
WMB returns 2.7% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$11.9B
Revenue Growth
TTM vs prior year
+10.6%
Gross Margin
Gross profit as a share of revenue
62.8%
Operating Margin
Operating income divided by revenue
38.8%
Net Margin
Net income divided by revenue
23.8%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$2.32
Free Cash Flow (TTM)
Cash generation after capex
$722M
FCF Margin
FCF as share of revenue — the primary cash quality signal
6.1%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
7.7%
ROA
Return on assets, trailing twelve months
4.9%
Cash & Equivalents
Liquid assets on the balance sheet
$63M
Net Debt
Total debt minus cash
$29.3B
Debt Serviceability
Net debt as a multiple of annual free cash flow
40.6× FCF
~40.6 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
19.0%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
2.7%
Dividend
2.7%
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
$2.00
Payout Ratio
Share of earnings distributed as dividends
93.3%
Shares Outstanding
Current diluted share count
1.2B
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageWMB Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Operational Hazards & Cybersecurity
WMB’s midstream operations face inherent risks of accidents, weather‑related disruptions, and potential cyber‑attacks. An incident could halt pipeline flow, trigger costly shutdowns, and damage the company’s reputation. The company’s exposure to terrorism and physical damage from extreme weather adds further uncertainty.
High Risk
Debt & Financing Constraints
WMB carries a substantial long‑term debt load, subject to covenant restrictions and credit rating changes. A downgrade or tightening of credit terms could raise borrowing costs and limit capital‑raising flexibility. Rising interest rates would directly increase interest expense, squeezing net income.
High Risk
Regulatory & Environmental Compliance
Operating in a heavily regulated sector, WMB must navigate evolving environmental laws and climate‑related policies. New permitting requirements or stricter emissions standards could impose additional operating costs or delay project approvals. Failure to comply could result in fines or operational shutdowns.
High Risk
Key Customer Concentration
A limited number of key customers account for a significant share of WMB’s revenue. Loss or volume reduction from any of these customers would materially depress cash flows and earnings. The company’s dependence on a few large contracts heightens revenue volatility.
High Risk
Technology & Infrastructure Security
Breaches in IT systems or physical infrastructure could lead to costly remediation, regulatory penalties, and reputational harm. Cyber incidents might disrupt pipeline monitoring or billing systems, causing operational downtime. Physical facility attacks could damage critical assets and halt service.
Medium
Commodity Price Volatility
While WMB’s revenue is more volume‑driven, prolonged swings in natural gas, NGL, and oil prices can still affect cash flows. Significant price declines could reduce freight rates and contract values, impacting profitability. The company’s exposure to market price fluctuations remains a financial risk.
Medium
Competitive Pressure
WMB competes on rates, service terms, and reliability against existing and emerging midstream players. Intense competition could force rate reductions or higher service costs, eroding margins. Access to supply and flexibility are key differentiators that may be challenged by new entrants.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why WMB Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Robust Natural Gas Demand Growth
Williams is a critical player in transporting natural gas, a fuel source expected to see continued demand growth, particularly from LNG exports and power generation. Its infrastructure is essential for meeting these needs.
Strategic Investments in Data‑Center Power
The company is investing in growth projects, including power innovation projects aimed at supplying data centers, signaling a commitment to capitalize on AI‑driven energy demands. Expansion work on its Transco pipeline system is also a key focus.
Fee‑Based, Long‑Term Contract Model
Williams operates a fee‑based, long‑term contracted business model, providing stable cash flows and insulating it from commodity price volatility.
Projected EBITDA Growth 10%+
Williams has a projected EBITDA growth rate of 10% or more, reflecting consistent cash flow growth and relatively low leverage compared to peers.
Dividend Growth Momentum
Williams has recently raised its quarterly dividend, offering attractive income potential for investors.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
WMB Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$73.76
52W Range Position
83%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$55.82
+32.1% from the low
52-Week High
$77.41
-4.7% from the high
1 Month
+1.61%
3 Month
+10.22%
YTD
+21.2%
1 Year
+25.7%
3Y CAGR
+35.6%
5Y CAGR
+24.2%
10Y CAGR
+14.1%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
WMB vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
31.6x
vs 15.2x median
+108% above peer median
Revenue Growth
+8.9%
vs +6.7% median
+33% above peer median
Net Margin
23.8%
vs 10.0% median
+137% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
WMB WMB The Williams Companies, Inc. | $90.2B | 31.6x | +8.9% | 23.8% | Buy | +7.1% |
KMI KMI Kinder Morgan, Inc. | $70.3B | 22.3x | +4.7% | 18.9% | Hold | +10.8% |
ET ET Energy Transfer LP | $68.4B | 12.3x | +9.5% | 5.9% | Buy | -4.4% |
EPD EPD Enterprise Products Partners L.P. | $81.2B | 13.1x | -0.8% | 11.0% | Buy | -1.5% |
TRG TRGP Targa Resources Corp. | $53.6B | 24.6x | +6.7% | 9.4% | Buy | -4.7% |
OKE OKE ONEOK, Inc. | $53.9B | 15.2x | +21.1% | 10.0% | Hold | +5.0% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
WMB Dividend and Capital Return
WMB returns 2.7% total yield, led by a 2.71% dividend, raised 8 consecutive years.
Dividend At RiskFCF Stretched
Total Shareholder Yield
2.7%
Dividend + buyback return per year
Buyback Yield
0.0%
Dividend Yield
2.71%
Payout Ratio
93.3%
How WMB Splits Its Return
Div 2.71%
Dividend 2.71%Buybacks 0.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.00
Growth Streak
Consecutive years of dividend increases
8Y
3Y Div CAGR
5.6%
5Y Div CAGR
4.6%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$0
Estimated Shares Retired
0
Approx. Share Reduction
0.0%
Shares Outstanding
Current diluted share count from the screening snapshot
1.2B
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.53 | — | — | — |
| 2025 | $2.00 | +5.3% | 0.0% | 3.3% |
| 2024 | $1.90 | +6.1% | 0.0% | 3.5% |
| 2023 | $1.79 | +5.3% | 0.3% | 5.4% |
| 2022 | $1.70 | +3.7% | 0.0% | 5.2% |
FAQ
7 questionsWMB Investor Questions
Common questions answered from live analyst data and company financials.
01Is The Williams Companies, Inc. (WMB) stock a buy or sell in 2026?
The Williams Companies, Inc. (WMB) is rated Buy by Wall Street analysts as of 2026. Of 34 analysts covering the stock, 27 rate it Buy or Strong Buy, 7 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $79, implying +7.1% from the current price of $74. The bear case scenario is $20 and the bull case is $111.
02What is the WMB stock price target for 2026?
The Wall Street consensus price target for WMB is $79 based on 34 analyst estimates. The high-end target is $89 (+20.7% from today), and the low-end target is $66 (-10.5%). The base case model target is $96.
03Is The Williams Companies, Inc. (WMB) stock overvalued in 2026?
WMB trades at 31.6x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals significantly overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for The Williams Companies, Inc. (WMB) stock in 2026?
The primary risks for WMB in 2026 are: (1) Operational Hazards & Cybersecurity — WMB’s midstream operations face inherent risks of accidents, weather‑related disruptions, and potential cyber‑attacks. (2) Debt & Financing Constraints — WMB carries a substantial long‑term debt load, subject to covenant restrictions and credit rating changes. (3) Regulatory & Environmental Compliance — Operating in a heavily regulated sector, WMB must navigate evolving environmental laws and climate‑related policies. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is The Williams Companies, Inc.'s revenue and earnings forecast?
Analyst consensus estimates WMB will report consensus revenue of $13.0B (+8.9% year-over-year) and EPS of $2.49 (+7.2% year-over-year) for the upcoming fiscal year. The following year, analysts project $14.2B in revenue.
06When does The Williams Companies, Inc. (WMB) report its next earnings?
A confirmed upcoming earnings date for WMB is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does The Williams Companies, Inc. generate?
The Williams Companies, Inc. (WMB) generated $722M in free cash flow over the trailing twelve months — a free cash flow margin of 6.1%. WMB returns capital to shareholders through dividends (2.7% yield) and share repurchases ($0 TTM).