Using the PEG framework with analyst consensus forward EPS growth of 16.8% plus 2.7% dividend yield, The Williams Companies, Inc. has a fair value of $38.57 based on NTM EPS (FY2026) of $2.30. The current PEG ratio is 1.92.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 14.1% |
| Dividend Yield | +2.7% |
| Adjusted Growth (clamped 8–25%) | 16.8% |
| Fair P/E | 16.8x |
| NTM EPS (FY2026) | $2.30 |
| Fair Value | $38.57 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.14 | — | — |
| FY2026E | $2.30 | +7.4% | 5 |
| FY2027E | $2.60 | +13.2% | 5 |
| FY2028E | $3.18 | +22.1% | 5 |
3Y Forward EPS CAGR: 14.1%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.5B | $1.24 | — |
| FY2022 | $2.0B | $1.67 | +34.7% |
| FY2023 | $3.2B | $2.60 | +55.7% |
| FY2024 | $2.2B | $1.82 | -30.0% |
| FY2025 | $2.6B | $2.14 | +17.6% |
4Y Historical EPS CAGR: 14.6%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.