Stock fact sheet · data as of
The Williams Companies, Inc. (WMB): fair value, margin of safety and Wheel Score
Energy · Oil & Gas Midstream · United States · Defensive
Is WMB undervalued?
The Williams Companies, Inc. (WMB) closed at 72.80 on 16 Oct 2026, 75% above the GLS average fair value of 41.67. 7 of the 8 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 8 models disagree widely: GLS Growth gives 21.80 while Graham Growth gives 100.72. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files WMB under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for WMB
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 44.62 | -39% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 24.67 | -66% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 100.72 | +38% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 40.83 | -44% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 21.80 | -70% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 42.32 | -42% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 30.53 | -58% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 27.90 | -62% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -32.98 | -145% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 87.08 | +20% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - WMB passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 4.3 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are moderate - ROIC 6.2%, ROE 20.4%, ROA 4.5% - with debt at 2.30 times equity and negative free cash flow. Debt of 2.30 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 2.85% at a payout ratio of 82%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Transmission, Power & Gulf 40%, West 21%, Gas & NGL Marketing Services 19% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 8/10 and Congressional trading 1/10 on the GLS smart-money scales; the last recorded Congressional buy was on 20 Aug 2026.
| Piotroski F-score | 6 / 9 | ROIC | 6.2% |
|---|---|---|---|
| GLS Moat | 4.3 / 10 | ROE | 20.4% |
| Debt / equity | 2.30 | ROA | 4.5% |
| Free-cash-flow yield | -0.2% | Payout ratio | 82% |
| Institutions | 10 / 10 | Insiders · Congress | 8 · 1 / 10 |
Wheel Score 58: Fair
WMB scores 58 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 0/25, Health 13/20, Moat 6/15, Premium 18/20, Stability 20/20. Value (0/25) is where the points are missing.
Implied volatility is 33% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (18 of 20 points). The option chain is deep: 365,793 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 10.6M shares a day on a market cap of $89.0B, with a beta of 0.66 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -75% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 6 / 15 | moat 4.3/10 | |
| Premium | 18 / 20 | implied volatility 33% | |
| Stability | 20 / 20 | 10.6M shares/day, $89.0B cap, beta 0.66 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Nov 2026 (after the close), 17 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Oil & Gas Midstream
The 12 companies below are the closest to The Williams Companies, Inc. by market cap within the Oil & Gas Midstream industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| EPD Enterprise Products Partners L.P. | 35.57 | 34.43 | -3% | 64Fair | $76.8B |
| ENB Enbridge Inc. | 46.83 | 42.08 | -11% | 53Fair | $104.4B |
| KMI Kinder Morgan, Inc. | 32.82 | 23.78 | -38% | 57Fair | $73.1B |
| ET Energy Transfer LP | 19.88 | 26.67 | +25% | 77Good | $68.5B |
| TRP TC Energy Corporation | 61.14 | 64.85 | +6% | 73Good | $63.7B |
| TRGP Targa Resources Corp. | 290.91 | 153.51 | -90% | 63Fair | $62.4B |
| MPLX MPLX Lp | 57.12 | 67.89 | +16% | 77Good | $57.9B |
| LNG Cheniere Energy, Inc. | 279.15 | 507.09 | +45% | 87Prime | $57.7B |
| OKE ONEOK, Inc. | 90.65 | 115.64 | +22% | 78Good | $57.1B |
| VG Venture Global, Inc. | 13.27 | 24.59 | +46% | 86Prime | $33.2B |
| CQP Cheniere Energy Partners, L.P. | 62.25 | 115.62 | +46% | 81Prime | $30.1B |
| PBA Pembina Pipeline Corporation | 48.52 | 41.17 | -18% | 51Fair | $28.2B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about WMB
Is WMB undervalued right now?
No: at 72.80 the stock trades 75% above the GLS average fair value of 41.67 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of WMB and what does it mean?
WMB scores 58 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for WMB?
41.67 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does The Williams Companies, Inc. report earnings next?
The next earnings report is due on 2 Nov 2026 (after the close), 17 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does WMB have listed options, and how liquid are they?
Yes. The nightly snapshot found 760 listed contracts with 365,793 open interest across all expiries and implied volatility of 33% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.