Latest Ratios: P/E Ratio 25.4x · EV/EBITDA 14.7x · ROE 17.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $78.4B | $73.4B | $66.2B | $42.6B | $40.2B | $31.7B | $24.4B | $28.8B | $21.5B | $25.3B | $23.4B |
| Enterprise Value | $107.7B | $102.7B | $93.2B | $66.9B | $63.0B | $53.7B | $46.6B | $50.8B | $43.7B | $45.3B | $46.7B |
| P/E Ratio → | 25.40 | 28.09 | 29.74 | 13.40 | 19.70 | 21.00 | 117.94 | 33.89 | — | 11.64 | — |
| P/S Ratio | 6.27 | 6.14 | 6.30 | 3.90 | 3.67 | 2.99 | 3.16 | 3.51 | 2.47 | 3.15 | 3.12 |
| P/B Ratio | 5.22 | 4.89 | 4.46 | 2.86 | 2.86 | 2.25 | 1.67 | 1.76 | 1.34 | 1.56 | 1.66 |
| P/FCF | — | 73.03 | 27.57 | 12.63 | 15.44 | 11.76 | 10.97 | 18.65 | 715.62 | 217.77 | 14.49 |
| P/OCF | 13.29 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 8.60 | 8.87 | 6.13 | 5.74 | 5.05 | 6.03 | 6.19 | 5.03 | 5.64 | 6.23 |
| EV / EBITDA | 14.68 | 15.22 | 16.77 | 10.48 | 12.53 | 12.01 | 11.87 | 13.97 | 17.53 | 17.01 | 19.05 |
| EV / EBIT | 24.47 | 20.27 | 21.43 | 11.86 | 17.07 | 16.52 | 32.14 | 22.58 | 30.29 | 28.00 | 58.09 |
| EV / FCF | — | 102.21 | 38.82 | 19.85 | 24.17 | 19.91 | 20.97 | 32.90 | 1457.15 | 390.50 | 28.96 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | 4.36 | 4.36 | 4.87 | 4.15 | 4.56 | 5.29 | 5.70 | 6.13 | 8.99 | 7.86 | 9.58 |
| Net Debt / Equity | — | 1.96 | 1.82 | 1.63 | 1.62 | 1.56 | 1.52 | 1.34 | 1.39 | 1.24 | 1.66 |
| Net Debt / EBITDA | 4.35 | 4.35 | 4.86 | 3.81 | 4.53 | 4.92 | 5.66 | 6.05 | 8.92 | 7.52 | 9.52 |
| Debt / FCF | — | 29.18 | 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 |
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 3.1% | 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% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.9% | 3.6% | 3.4% | 7.5% | 5.1% | 4.8% | 0.8% | 3.0% | — | 8.6% | — |
| FCF Yield | — | 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 | 3.1% | 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 |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying WMB stock.
The Williams Companies, Inc.'s current P/E ratio is 25.4x. The historical average is 35.2x. This places it at the 35th percentile of its historical range.
The Williams Companies, Inc.'s current EV/EBITDA is 14.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.1x.
The Williams Companies, Inc.'s return on equity (ROE) is 17.5%. The historical average is 6.2%.
Based on historical data, The Williams Companies, Inc. is trading at a P/E of 25.4x. This is at the 35th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Williams Companies, Inc.'s current dividend yield is 3.12% with a payout ratio of 93.3%.
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.
The Williams Companies, Inc.'s Debt/EBITDA ratio is 4.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Unreconciled debt data and capex strain
Metrics are mathematically derived from official filings.
Premium Multiples Priced for Growth
WMB trades at 30.0x trailing earnings and 15.99x EV/EBITDA, a premium to KMI at 22.0x and 13.70x, according to the supplied valuation multiples, while its PEG of 0.46 suggests the market is pricing in durable expansion rather than a re-rating on current earnings alone.
The forward P/E of 26.13 and forward EV/EBITDA of 13.90 imply earnings growth the market expects to continue, which the reported 13.78% YoY growth partially supports. The 78x price-to-free-cash-flow multiple, however, shows how far reported free cash flow currently sits below earnings, so the valuation depends more on the durability of the expansion program than on present cash generation. Investors should monitor whether the premium narrows as capex normalizes, since a P/FCF this elevated leaves little margin for execution slippage.
Leverage Metrics Contradict Balance Sheet Scale
The supplied debt-to-equity ratio of 1.58 and debt-to-EBITDA of 19.32 in 2026Q3 are inconsistent with the reported 1.96% D/E figure, and interest coverage slid from 4.06x in 2026Q2 to 3.57x, based on the reported quarterly ratio data.
Using reported debt of roughly $33.9B against equity of $15.7B implies leverage near 2.2x, which conflicts with both the 1.58 ratio field and the 1.96% company-level figure, suggesting the ratio inputs warrant reconciliation before conclusions are drawn. Debt-to-EBITDA rising to 19.32x in the latest quarter may indicate that trailing EBITDA is not capturing the full debt load, or that quarterly annualization is distorting the figure. Coverage compression from 4.06x to 3.57x appears modest in absolute terms but deserves monitoring given the expansion-driven debt build.
Thin Current Coverage Under Stress
As reported in financial statements, WMB's current ratio fell to 0.75 and quick ratio to 0.70 in 2026Q3, with cash of $1.8B against current obligations that leave limited near-term buffer.
A current ratio below 1.0 is typical for midstream operators funded by long-dated debt and recurring fee receipts, so the figure alone does not signal distress. Under severe stress, however, the reliance on operating cash flow to meet short-term maturities becomes more important, and free cash flow has turned negative in the latest quarter. Investors should monitor refinancing timing and the capacity to access capital markets, though the supplied data does not confirm specific maturity schedules or credit facility availability.
Returns Compressed by Expanding Asset Base
ROIC has ranged from 1.3% to 2.3% over the last ten quarters and ended at 1.7% in 2026Q3, well below the 5.6% to 13.2% range of the peer group, based on the supplied quarterly ratio data.
The gap against peers appears partly structural, since WMB's large regulated-style asset base generates lower returns on capital than asset-light or more levered peers such as TRGP, which reports ROIC of 13.2%. ROE of 3.8% in 2026Q3 reflects a combination of thin net margins and a growing equity-and-asset base, with total assets expanding roughly 35% since 2024Q2. Whether returns recover depends on whether new capacity generates the fee-based cash flows management is underwriting, which the supplied data cannot yet confirm.
Misapplied Earnings Multiple Obscures Cash Reality
The P/E ratio is the metric most commonly misapplied to midstream C-corps like WMB, because heavy depreciation depresses reported earnings while distributable cash flow better reflects dividend coverage.
P/E of 30.0x overstates the price paid for cash-generating assets when non-cash depreciation and derivative fair-value swings distort net income, as seen in the volatile net margin ranging from 17.2% to 28.5% across recent quarters. A distributable cash flow yield, adjusted for maintenance versus growth capex, would more directly test whether the 3.1% dividend is covered. Given that free cash flow turned negative in 2026Q3 while dividends continued at roughly $610M to $656M per quarter, that adjusted view is essential before drawing valuation conclusions.