Williams Companies Inc. (WMB) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Williams operates the Transco pipeline, which connects the Gulf Coast to the Northeast United States. It has additional natural gas transmission pipelines connecting the Rockies to the Pacific Nort...
Williams Companies Inc. (WMB) currently trades at a P/E ratio of 28.37 (historical range: 13.49–40.82, median: 25.16), placing it at the 58th percentile — near its historical average, P/S ratio of 7.14 (range: 3.04–8.16, 89th percentile — expensive relative to its history), EV/EBITDA of 25.27 (range: 14.86–28.60, 79th percentile).
Over the historical period (2021-09-14 to 2026-10-16), Williams Companies Inc.'s P/E ratio has expanded by 21% over the observed period (from an average of 22.6 to 27.3).
Williams Companies Inc. trades well above its own historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 28.37 | 25.16 | 58th | near its historical average |
| P/S Ratio | 7.14 | 4.36 | 89th | expensive relative to its history |
| EV/EBITDA | 25.27 | 21.47 | 79th | above its historical average |
| FCF Yield | 0.90% | 6.31% | 1th | expensive relative to its history |
Williams Companies Inc. (WMB) Valuation & P/E History
Williams Companies Inc. (WMB) is a US-listed stock operating in the Utilities sector, specifically the Natural Gas Transmission industry currently trading at $70.38 with a market capitalization of $86.1 billion. This page provides historical valuation analysis for WMB based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 28.37 is above the historical median of 25.16, placing WMB at the 58th percentile of its valuation range. The P/S ratio of 7.14 compares to a median of 4.36.
WMB Valuation Metrics & Historical Range
The valuation table above shows Williams Companies Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether WMB is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests WMB is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Williams Companies Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is WMB Overvalued or Undervalued?
Williams Companies Inc. trades well above its own historical valuation range across most metrics. The overall valuation percentile of 75 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive WMB is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full WMB analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.WMB trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.