Latest Ratios: P/E Ratio 35.1x · EV/EBITDA 17.9x · 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 | $91.8B | $73.4B | $66.2B | $42.6B | $40.2B | $31.7B | $24.4B | $28.8B | $21.5B | $25.3B | $23.4B |
| Enterprise Value | $121.1B | $102.7B | $93.2B | $66.9B | $63.0B | $53.7B | $46.6B | $50.8B | $43.7B | $45.3B | $46.7B |
| P/E Ratio → | 35.08 | 28.09 | 29.74 | 13.40 | 19.70 | 21.00 | 117.94 | 33.89 | — | 11.64 | — |
| P/S Ratio | 7.68 | 6.14 | 6.30 | 3.90 | 3.67 | 2.99 | 3.16 | 3.51 | 2.47 | 3.15 | 3.12 |
| P/B Ratio | 6.11 | 4.89 | 4.46 | 2.86 | 2.86 | 2.25 | 1.67 | 1.76 | 1.34 | 1.56 | 1.66 |
| P/FCF | 91.37 | 73.03 | 27.57 | 12.63 | 15.44 | 11.76 | 10.97 | 18.65 | 715.62 | 217.77 | 14.49 |
| P/OCF | 15.57 | 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 | — | 8.59 | 8.87 | 6.13 | 5.74 | 5.05 | 6.03 | 6.19 | 5.03 | 5.64 | 6.23 |
| EV / EBITDA | 17.95 | 15.22 | 16.77 | 10.48 | 12.53 | 12.01 | 11.87 | 13.97 | 17.53 | 17.01 | 19.05 |
| EV / EBIT | 27.52 | 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 |
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 | 4.35 | 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 |
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 | 2.7% | 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 | 2.9% | 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 | 2.7% | 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 |
Regulatory and Permitting Hurdles
According to current market data, WMB trades at a forward P/E of 32.95 and an EV/EBITDA of 17.27, suggesting that investors are pricing in a significant growth premium relative to peers like Kinder Morgan, which trades at a substantially lower 14.61x EV/EBITDA multiple.
The elevated valuation multiples appear to reflect the market's recognition of WMB's unique Transco pipeline connectivity into supply-constrained Northeast markets. However, the high P/FCF of 94.82 warrants caution, as it suggests that the current share price may be disconnected from near-term cash generation capabilities.
Based on reported financial figures, WMB's ROIC has remained consistently low, hovering between 1.3% and 2.3% over the last ten quarters, which indicates that the company's massive capital investments in steel infrastructure have yet to generate returns that meaningfully exceed its cost of capital.
This persistent underperformance in ROIC relative to peers like Enterprise Products Partners, which reports significantly higher returns, suggests that WMB's growth strategy is heavily reliant on large-scale, long-gestation projects. Investors should monitor whether future brownfield expansions can improve these returns or if capital intensity will continue to dilute shareholder value.
As reported in recent quarterly filings, WMB's cash conversion cycle has shown extreme volatility, swinging from -269 days in 2026Q1 to -8 days in 2025Q2, which highlights the significant influence of non-recurring items and complex contractual payment terms on the company's working capital efficiency.
The wide variance in the CCC suggests that the company's ability to manage supplier and customer leverage is highly sensitive to the timing of large-scale project payments. This lack of consistency makes it difficult to rely on working capital as a stable source of liquidity for the business.
Based on the provided financial statements, WMB's debt-to-EBITDA ratio has remained stubbornly high, peaking at 21.25 in 2024Q2, which indicates that the company's debt service burden is significant and potentially vulnerable to any sustained downturn in throughput volumes or regulatory-driven project delays.
The reported D/E ratio of 2.00, when viewed alongside the interest coverage ratio that has dipped as low as 2.64, suggests that the company's balance sheet is operating with limited margin for error. This leverage profile necessitates a disciplined approach to capital allocation to ensure that dividend commitments remain sustainable.
The P/E ratio is frequently misapplied to WMB, as it fails to account for the massive non-cash depreciation charges inherent in the company's capital-intensive pipeline business, which artificially suppresses reported net income and makes the stock appear significantly more expensive than its cash-generating reality suggests.
Analysts should instead prioritize Distributable Cash Flow (DCF) or Adjusted EBITDA to better assess the company's true earning power and dividend coverage. Relying on P/E ignores the fundamental reality that WMB functions more like a regulated utility than a traditional manufacturing entity, where depreciation is a accounting convention rather than a cash expense.
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 35.1x. The historical average is 35.2x. This places it at the 70th percentile of its historical range.
The Williams Companies, Inc.'s current EV/EBITDA is 17.9x. 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 35.1x. This is at the 70th 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 2.66% 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.