The Williams Companies, Inc. (WMB) Financial Ratios
30 years of historical data (1996–2025) · Energy · Oil & Gas Midstream
EV/EBITDA
↑
18.14
↑+35% vs avg
5yr avg: 13.40
30Y Low2.3·High22.2
P/FCF
↑
92.62
↑+230% vs avg
5yr avg: 28.08
30Y Low9.7·High73.8
P/B Ratio
↑
6.20
↑+79% vs avg
5yr avg: 3.47
30Y Low0.2·High6.1
ROE
↑
17.5%
↓+10% vs avg
5yr avg: 15.9%
30Y Low-13%·High22%
Debt/EBITDA
↓
4.35
↓-6% vs avg
5yr avg: 4.64
30Y Low1.0·High12.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
WMB Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
The Williams Companies, Inc. trades at 35.6x earnings, 59% above its 5-year average of 22.4x, sitting at the 70th percentile of its historical range. Compared to the Energy sector median P/E of 17.1x, the stock trades at a premium of 108%. On a free-cash-flow basis, the stock trades at 92.6x P/FCF, 230% above the 5-year average of 28.1x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $93.1B | $73.4B | $66.2B | $42.6B | $40.2B | $31.7B | $24.4B | $28.8B | $21.5B | $25.3B | $23.4B |
| Enterprise Value | $122.4B | $102.7B | $93.2B | $66.9B | $63.0B | $53.7B | $46.6B | $50.8B | $43.7B | $45.3B | $46.7B |
| P/E Ratio → | 35.57 | 28.09 | 29.74 | 13.40 | 19.70 | 21.00 | 117.94 | 33.89 | — | 11.64 | — |
| P/S Ratio | 7.79 | 6.14 | 6.30 | 3.90 | 3.67 | 2.99 | 3.16 | 3.51 | 2.47 | 3.15 | 3.12 |
| P/B Ratio | 6.20 | 4.89 | 4.46 | 2.86 | 2.86 | 2.25 | 1.67 | 1.76 | 1.34 | 1.56 | 1.66 |
| P/FCF | 92.62 | 73.03 | 27.57 | 12.63 | 15.44 | 11.76 | 10.97 | 18.65 | 715.62 | 217.77 | 14.49 |
| P/OCF | 15.78 | 12.44 | 13.31 | 7.17 | 8.23 | 8.04 | 6.97 | 7.80 | 6.52 | 9.88 | 6.38 |
P/E links to full P/E history page with 30-year chart
WMB EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
The Williams Companies, Inc.'s enterprise value stands at 18.1x EBITDA, 35% above its 5-year average of 13.4x. The Energy sector median is 8.0x, placing the stock at a 125% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 8.59 | 8.87 | 6.13 | 5.74 | 5.05 | 6.03 | 6.19 | 5.03 | 5.64 | 6.23 |
| EV / EBITDA | 18.14 | 15.22 | 16.77 | 10.48 | 12.53 | 12.01 | 11.87 | 13.97 | 17.53 | 17.01 | 19.05 |
| EV / EBIT | 27.81 | 20.27 | 21.43 | 11.86 | 17.07 | 16.52 | 32.14 | 22.58 | 30.29 | 28.00 | 58.09 |
| EV / FCF | — | 102.18 | 38.82 | 19.85 | 24.17 | 19.91 | 20.97 | 32.90 | 1457.15 | 390.50 | 28.96 |
WMB Profitability
Margins and return-on-capital ratios measuring operating efficiency
The Williams Companies, Inc. earns an operating margin of 36.8%, significantly above the Energy sector average of 14.4%. Operating margins have compressed from 39.5% to 36.8% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 17.5% indicates solid capital efficiency, compared to the sector median of 8.5%. ROIC of 7.7% represents adequate returns on invested capital versus a sector median of 6.3%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 42.9% | 42.9% | 58.7% | 62.4% | 50.2% | 44.7% | 56.8% | 53.9% | 47.4% | 49.7% | 53.5% |
| Operating Margin | 36.8% | 36.8% | 31.8% | 39.5% | 27.5% | 24.8% | 28.5% | 23.4% | 8.8% | 11.5% | 9.2% |
| Net Profit Margin | 21.9% | 21.9% | 21.2% | 29.1% | 18.7% | 14.3% | 2.7% | 10.4% | -1.8% | 27.1% | -5.7% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.5% | 17.5% | 15.0% | 22.0% | 14.6% | 10.6% | 1.4% | 5.3% | -1.0% | 14.4% | -2.8% |
| ROA | 4.6% | 4.6% | 4.2% | 6.3% | 4.3% | 3.3% | 0.5% | 1.9% | -0.3% | 4.7% | -0.9% |
| ROIC | 7.7% | 7.7% | 6.2% | 8.5% | 6.2% | 5.4% | 4.4% | 3.8% | 1.5% | 1.9% | 1.3% |
| ROCE | 8.7% | 8.7% | 7.0% | 9.5% | 7.0% | 6.2% | 5.2% | 4.5% | 1.8% | 2.1% | 1.5% |
WMB Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
The Williams Companies, Inc. carries a Debt/EBITDA ratio of 4.4x, which is highly leveraged (83% above the sector average of 2.4x). Net debt stands at $29.3B ($29.4B total debt minus $63M cash). Interest coverage of 3.5x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.96 | 1.96 | 1.82 | 1.78 | 1.63 | 1.68 | 1.53 | 1.36 | 1.40 | 1.29 | 1.67 |
| Debt / EBITDA | 4.35 | 4.35 | 4.87 | 4.15 | 4.56 | 5.29 | 5.70 | 6.13 | 8.99 | 7.86 | 9.58 |
| Net Debt / Equity | — | 1.95 | 1.82 | 1.63 | 1.62 | 1.56 | 1.52 | 1.34 | 1.39 | 1.24 | 1.66 |
| Net Debt / EBITDA | 4.34 | 4.34 | 4.86 | 3.81 | 4.53 | 4.92 | 5.66 | 6.05 | 8.92 | 7.52 | 9.52 |
| Debt / FCF | — | 29.15 | 11.25 | 7.21 | 8.73 | 8.15 | 10.00 | 14.25 | 741.53 | 172.72 | 14.46 |
| Interest Coverage | 3.51 | 3.51 | 3.19 | 4.56 | 3.22 | 2.76 | 1.24 | 1.90 | 1.30 | 1.49 | 0.68 |
WMB Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.53x is below 1.0, meaning current liabilities exceed current assets. The current ratio has declined from 0.77x to 0.53x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.53 | 0.53 | 0.50 | 0.77 | 0.78 | 0.91 | 0.62 | 0.40 | 0.81 | 0.82 | 0.50 |
| Quick Ratio | 0.48 | 0.48 | 0.45 | 0.73 | 0.71 | 0.84 | 0.56 | 0.37 | 0.74 | 0.78 | 0.45 |
| Cash Ratio | 0.01 | 0.01 | 0.01 | 0.37 | 0.03 | 0.34 | 0.06 | 0.07 | 0.09 | 0.34 | 0.06 |
| Asset Turnover | — | 0.20 | 0.19 | 0.21 | 0.23 | 0.22 | 0.17 | 0.18 | 0.19 | 0.17 | 0.16 |
| Inventory Turnover | 21.75 | 21.75 | 15.54 | 14.99 | 17.08 | 15.50 | 24.51 | 30.24 | 35.15 | 35.72 | 25.28 |
| Days Sales Outstanding | — | 63.65 | 64.74 | 55.38 | 90.64 | 67.94 | 47.24 | 44.33 | 41.69 | 44.36 | 45.66 |
WMB Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
The Williams Companies, Inc. returns 2.6% to shareholders annually primarily through dividends. The payout ratio of 93.3% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 2.8% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.6% | 3.3% | 3.5% | 5.1% | 5.1% | 6.3% | 8.0% | 6.4% | 6.5% | 3.9% | 5.4% |
| Payout Ratio | 93.3% | 93.3% | 104.1% | 68.5% | 101.1% | 131.3% | 919.9% | 216.7% | — | 45.6% | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.8% | 3.6% | 3.4% | 7.5% | 5.1% | 4.8% | 0.8% | 3.0% | — | 8.6% | — |
| FCF Yield | 1.1% | 1.4% | 3.6% | 7.9% | 6.5% | 8.5% | 9.1% | 5.4% | 0.1% | 0.5% | 6.9% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 2.6% | 3.3% | 3.5% | 5.4% | 5.2% | 6.3% | 8.0% | 6.4% | 6.5% | 3.9% | 5.4% |
| Shares Outstanding | — | $1.2B | $1.2B | $1.2B | $1.2B | $1.2B | $1.2B | $1.2B | $974M | $829M | $751M |
Peer Comparison
Compare WMB with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 WMBYou | $93B | 35.6 | 18.1 | 92.6 | 42.9% | 36.8% | 17.5% | 7.7% | 4.4 |
 KMI | $72B | 23.6 | 14.3 | 22.3 | 43.7% | 28.4% | 9.5% | 5.6% | 4.5 |
 ET | $70B | 15.1 | 9.5 | 18.2 | 21.8% | 11.4% | 10.2% | 6.3% | 4.9 |
 EPD | $83B | 14.5 | 12.3 | 28.1 | 13.6% | 13.1% | 19.3% | 8.3% | 3.7 |
 TRGP | $56B | 30.5 | 14.7 | 14.2 | 26.5% | 20.1% | 48.4% | 13.3% | 3.5 |
 OKE | $57B | 16.6 | 10.5 | 23.2 | 21.5% | 20.7% | 15.2% | 9.6% | 3.9 |
 MPLX | $57B | 11.5 | 13.2 | 13.8 | 45.2% | 40.3% | 34.4% | 9.9% | 4.3 |
 DT | $12B | 24.3 | 46.7 | 26.7 | 81.2% | 10.6% | 20.9% | 9.0% | 0.3 |
 AM | $10B | 25.3 | 15.8 | 13.4 | 65.3% | 51.2% | 20.2% | 9.4% | 3.8 |
 CTRA | $27B | 15.8 | 6.4 | 16.6 | 60.4% | 89.1% | 12.3% | 10.9% | 0.8 |
 DKL | $3B | 15.9 | 9.1 | — | 20.9% | 18.0% | 847.5% | 14.1% | 0.1 |
| Energy Median | — | 17.1 | 8.0 | 13.8 | 33.2% | 14.4% | 8.5% | 6.3% | 2.4 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonWMB — Frequently Asked Questions
Quick answers to the most common questions about buying WMB stock.
What is The Williams Companies, Inc.'s P/E ratio?
The Williams Companies, Inc.'s current P/E ratio is 35.6x. The historical average is 35.2x. This places it at the 70th percentile of its historical range.
What is The Williams Companies, Inc.'s EV/EBITDA?
The Williams Companies, Inc.'s current EV/EBITDA is 18.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.1x.
What is The Williams Companies, Inc.'s ROE?
The Williams Companies, Inc.'s return on equity (ROE) is 17.5%. The historical average is 6.2%.
Is WMB stock overvalued?
Based on historical data, The Williams Companies, Inc. is trading at a P/E of 35.6x. This is at the 70th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is The Williams Companies, Inc.'s dividend yield?
The Williams Companies, Inc.'s current dividend yield is 2.63% with a payout ratio of 93.3%.
What are The Williams Companies, Inc.'s profit margins?
The Williams Companies, Inc. has 42.9% gross margin and 36.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does The Williams Companies, Inc. have?
The Williams Companies, Inc.'s Debt/EBITDA ratio is 4.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.