Using the industry peer median P/E multiple (trailing + forward), The Williams Companies, Inc. (WMB) has a fair value of $55.21 based on 3 comparable companies in the Oil & Gas Midstream industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| The Williams Companies, Inc.WMB | 90,513 | 34.6x | 32.3x |
| Kinder Morgan, Inc.KMI | 76,211 | 25.0x | 24.7x |
| ONEOK, Inc.OKE | 59,049 | 17.3x | 16.7x |
| Targa Resources Corp.TRGP | 53,910 | 29.4x | 24.9x |
| Industry Median | 25.0x | 24.7x | |
| (*) Profit after tax | 2,618 | 2,806 | |
| Equity Value | 65,460 | 69,353 | |
| (/) Outstanding shares | 1,221 | 1,221 | |
| Fair Price | $54 | $57 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.