The Williams Companies, Inc. operates as an energy infrastructure company primarily in the United States. The company operates through Williams Partners, Williams NGL (natural gas liquids) & Petchem Services, and Other segments. The company was founded in 1908 and is based in Tulsa, Oklahoma.
WMB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Williams Companies Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Williams Companies Inc ranked in the 91th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2817.5%. As for the metrics that stood out in our discounted cash flow analysis of Williams Companies Inc, consider:
The company's balance sheet shows it gets 50% of its capital from equity, and 50% of its capital from debt. Its equity weight surpasses that of 57.77% of free cash flow generating stocks in the Energy sector.
The company's compound free cash flow growth rate over the past 4.01 years comes in at 1.25%; that's greater than 92.49% of US stocks we're applying DCF forecasting to.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WMB, try SNMP, CPG, GPP, ENB, and HP.
Introduction The March 2020 market crash provided some amazing opportunities to pick up solid equities at fire-sale prices. I wish it would have lasted a little longer. It was over and done faster than I was willing to put cash to work. While I did initiate what turned out to...
D.S. Leach & C.E. Leach on Seeking Alpha | September 12, 2020