4 models fit Williams Companies Inc. (The) Common Stock and they disagree: 1 of 4 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Large premium(i)
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionWilliams Companies Inc. (The) Common Stock (WMB)
Fair value (4 models)
$27.15
ACCE price target
$72.00
Rating
Overvalued
Horizon
12 months
Fair value published on 19 Oct 2026, 18:04 CEST; previously $27.84 since 11 Oct 2026, 00:00 CEST.
ACCE price target published on 19 Sept 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 18:04 CEST.
Price used: $71.70 at the close on 23 Oct 2026, 22:00 CEST.
Models: P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
164.1% above
-62.1% to fair value
ACCE score
61
out of 100
Analysts
92% buy
25 covering
P/E
28.6x
forward 27.2x
1-year return
+21.7%
Dividend yield
2.97%
Williams Companies Inc. (The) Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Williams operates natural gas pipelines, processing plants, and liquids infrastructure across North America, with a 40% stake in the Permian Basin's largest natural gas processor. The company benefits from structural tailwinds: US LNG export capacity is constrained, driving higher prices for Permian gas, while domestic demand for natural gas remains resilient as coal retires and data centers expand power consumption. Volume growth in the Permian and fee-based contract economics insulate earnings from commodity swings, with 85% of EBITDA from long-term contracts. The forward PE of 27.5x reflects current valuations, but the company trades at a 15% discount to peers on EV/EBITDA despite higher return on equity of 21.5%, suggesting the market has not fully priced the structural advantage of owning the only major outlet for Permian production growth.