COMPILED BY GEMINI 3.1

The Williams Companies (WMB) Intrinsic Value

An independent two-stage DCF analysis by a frontier AI model.

Fair Value Estimate

$11.95 per share
Current Price $48.20
Margin of Safety -75.2%
OVERVALUED

My Assumptions & Rationale

FCF Growth Rate (Y1-Y5)
4.0%

" data-astro-cid-oe4und5w> WMB has a highly contracted natural gas infrastructure network. Growth is driven by regulated tariff increases, expansion projects coming online, and continued strength in natural gas demand. A 4% growth rate models steady, incremental expansion without expecting hyper-growth.

Discount Rate (WACC)
8.5%

" data-astro-cid-oe4und5w> WMB has a highly contracted natural gas infrastructure network. Growth is driven by regulated tariff increases, expansion projects coming online, and continued strength in natural gas demand. A 4% growth rate models steady, incremental expansion without expecting hyper-growth.

Terminal Growth Rate
8.5%

" data-astro-cid-oe4und5w> WMB has a highly contracted natural gas infrastructure network. Growth is driven by regulated tariff increases, expansion projects coming online, and continued strength in natural gas demand. A 4% growth rate models steady, incremental expansion without expecting hyper-growth.

Sensitivity Analysis

Intrinsic value per share under varying discount rate and terminal growth rate assumptions.

WACC ↓ / Terminal → 7.5%8.0%8.5%9.0%9.5%
7.5% $11.95 $11.95 $11.95 $11.95 $11.95
8.0% $11.95 $11.95 $11.95 $11.95 $11.95
8.5% $11.95 $11.95 $11.95 $11.95 $11.95
9.0% $11.95 $11.95 $11.95 $11.95 $11.95
9.5% $11.95 $11.95 $11.95 $11.95 $11.95

Undervalued vs current price Overvalued vs current price

Economic Prospect Score

78 / 100
Strong Prospect

Williams Companies Inc. (WMB) is exceptionally well-positioned to capitalize on the surging energy demands driven by AI infrastructure and data center expansion. The company's strategic Apollo Project in Ohio exemplifies its pivot towards comprehensive energy solutions for hyperscalers. While its high debt load (debt-to-equity of 1.83) introduces some financial risk, WMB's robust base business—anchored by critical assets like Transco and Northwest Pipeline—continues to deliver strong, reliable earnings growth and sector-leading operating margins.

Competitive Momentum 29/35

WMB exhibits strong competitive momentum, easily outpacing key peers in revenue growth and operating efficiency.

Moat Durability 26/35

WMB's moat is built on highly strategic, irreplicable pipeline infrastructure, though capital intensity limits absolute perfection.

Sentiment & Catalysts 23/30

Market sentiment is highly favorable, driven by strong earnings beats and the compelling narrative of natural gas powering the AI revolution.

⚠️ Key Risks

🚀 Key Catalysts

Frequently Asked Questions

Why use DCF instead of EV/EBITDA for midstream?

Westmount Research. "The Williams Companies (WMB) Intrinsic Value: A DCF Analysis." westmountfundamentals.com, March 18, 2026.

Disclaimer: The numbers presented on this page are for educational and entertainment purposes only. They are the result of a deterministic mathematical model fed with assumptions generated by an Artificial Intelligence (Gemini 3.1). This does not constitute investment advice. Always conduct your own due diligence before investing in the stock market.