Latest Ratios: P/E Ratio 33.2x · EV/EBITDA 17.2x · 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 | $87.0B | $73.4B | $66.2B | $42.6B | $40.2B | $31.7B | $24.4B | $28.8B | $21.5B | $25.3B | $23.4B |
| Enterprise Value | $116.3B | $102.7B | $93.2B | $66.9B | $63.0B | $53.7B | $46.6B | $50.8B | $43.7B | $45.3B | $46.7B |
| P/E Ratio → | 33.23 | 28.09 | 29.74 | 13.40 | 19.70 | 21.00 | 117.94 | 33.89 | — | 11.64 | — |
| P/S Ratio | 7.28 | 6.14 | 6.30 | 3.90 | 3.67 | 2.99 | 3.16 | 3.51 | 2.47 | 3.15 | 3.12 |
| P/B Ratio | 5.79 | 4.89 | 4.46 | 2.86 | 2.86 | 2.25 | 1.67 | 1.76 | 1.34 | 1.56 | 1.66 |
| P/FCF | 86.53 | 73.03 | 27.57 | 12.63 | 15.44 | 11.76 | 10.97 | 18.65 | 715.62 | 217.77 | 14.49 |
| P/OCF | 14.75 | 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 | 17.23 | 15.22 | 16.77 | 10.48 | 12.53 | 12.01 | 11.87 | 13.97 | 17.53 | 17.01 | 19.05 |
| EV / EBIT | 26.43 | 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 | 2.8% | 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 | 3.0% | 3.6% | 3.4% | 7.5% | 5.1% | 4.8% | 0.8% | 3.0% | — | 8.6% | — |
| FCF Yield | 1.2% | 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 | 2.8% | 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 33.2x. The historical average is 35.2x. This places it at the 57th percentile of its historical range.
The Williams Companies, Inc.'s current EV/EBITDA is 17.2x. 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 33.2x. This is at the 57th 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 2.81% 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
FERC rate case exposure
Metrics are mathematically derived from official filings.
Premium Multiple for LNG-Linked Growth
WMB trades at 17.3x EV/EBITDA versus KMI's 14.1x, reflecting its Transco monopoly and LNG export exposure. According to recent market data, the forward P/E of 30.25 implies continued double-digit EBITDA growth, as per the latest filings.
The premium to peers appears justified by the company's unique position in the Northeast and Gulf Coast, where demand-pull dynamics support higher utilization. However, the PEG of 0.51 suggests the market is pricing in substantial growth, which may already be reflected in the multiple. Investors should monitor whether the growth algorithm can sustain the premium as LNG build-out matures.
Fee-Based Margins Mask Commodity Swings
Gross margin swung from 38.1% in 2025Q2 to 83.3% in 2026Q2, but operating margin held near 38.7%, as reported in the latest quarterly data. This suggests core fee-based profitability is stable, with volatility driven by pass-through costs.
The stability in operating margin, despite gross margin volatility, indicates that the underlying toll-road business is resilient. The 42.86% gross margin in the provided data likely reflects a mix of segments, but the operating margin is the better gauge of earning power. The recent EPS miss, despite strong EBITDA, warrants attention to cost or volume pressures not visible in the margin data.
ROIC Lags Peers Despite Asset Scale
ROIC of 2.0% in 2026Q2 is well below KMI's 5.6% and TRGP's 13.2%, as per the latest peer data. This suggests that WMB's massive capital base is not yet generating commensurate returns, though the trend is improving from 1.3% in 2024Q2.
The low ROIC reflects the heavy capital intensity of the business, with PPE surging 69% since 2024Q4. While the company is investing for growth, the returns are still in the early innings. The improvement in ROIC from 1.3% to 2.0% over two years indicates that new projects are beginning to contribute, but the gap to peers suggests execution risk remains.
Negative CCC Reflects Supplier Leverage
Cash conversion cycle turned sharply negative to -294 days in 2026Q2, driven by DPO of 401 days, as reported in the latest quarterly data. This indicates WMB is effectively using supplier financing to fund operations, a common trait in midstream.
The negative CCC is not a sign of operational inefficiency but rather reflects the company's ability to defer payments to suppliers, likely due to its scale and contractual terms. However, the extreme DPO may also indicate strained supplier relationships or aggressive payment terms. Asset turnover remains low at 0.05x, consistent with the capital-intensive nature of the business, but the negative CCC provides a working capital cushion.
Debt Load Creeps Higher Amid Expansion
Debt-to-equity rose to 2.00 in 2026Q2 from 1.82 a year earlier, with total debt at $30.8B, as per the latest balance sheet. Interest coverage of 4.06x remains adequate but has been volatile, indicating manageable but rising leverage.
The increase in leverage is driven by the aggressive capital expenditure program, with capex tripling since 2024. While interest coverage is still comfortable, the D/EBITDA of 17.36x is elevated compared to peers like KMI at 14.06x, suggesting less headroom. The reported D/E of 1.96% in the data is clearly an error, as the actual figure is 2.00, and investors should rely on the balance sheet data.
Thin Liquidity Buffer Raises Concern
Current ratio fell to 0.48 in 2026Q2, with cash at just $203M, as reported in the latest balance sheet. This indicates a tight liquidity position that could be vulnerable under stress, though the negative CCC provides some offset.
The current ratio of 0.48 is well below the 1.0 threshold, suggesting that current liabilities exceed current assets by a wide margin. However, the negative CCC means that WMB collects cash from customers before paying suppliers, which mitigates the need for high current assets. Still, the thin cash balance and reliance on debt markets for refinancing could be a risk if credit conditions tighten.
P/E Misleads on Midstream Value
The P/E of 33.42 is often misapplied to WMB, as it fails to account for heavy non-cash depreciation and derivative volatility. According to the latest financials, distributable cash flow (DCF) is a more accurate measure of value for this toll-road business.
Net income is distorted by non-cash charges, making the P/E appear expensive relative to peers. Instead, investors should focus on EV/EBITDA or price-to-DCF, which better capture the cash-generating ability of the infrastructure. The high P/FCF of 87.02 also reflects the heavy growth capex, which is not indicative of maintenance needs. Using EV/EBITDA, WMB's 17.3x is still a premium, but it is more comparable to the peer group.