WMB Williams Companies
too hard · 60
Owner-earnings value$42.96
Price$72.34
Margin of safety
-40.6%
Quality gate · 60/100
⚠ sub-hurdle returns (median roic 9% < 9%) · over-levered (net debt/EBITDA 4.3x > 4x)
Median ROIC8.8%
Gross margin63.3%
Net debt / EBITDA4.3x
FCF conversion91%
Share count / yr+0.1%
Profitable years4/4
Moat & management
Owner-earnings inputs
| Owner earnings (TTM) | 3.07B |
| Owner-earnings yield | 3.5% |
| Free-cash-flow yield | -0.2% |
| Growth used (normalized) | 2.9% |
| Market-implied growth (reverse DCF) | 15.6% |
| Terminal growth | 3.0% |
| Discount rate (hurdle) | 9.0% |
Projected owner earnings
| Yr | Owner earnings | Growth | PV |
|---|---|---|---|
| 1 | 3.16B | 2.9% | 2.90B |
| 2 | 3.25B | 2.9% | 2.74B |
| 3 | 3.35B | 2.9% | 2.59B |
| 4 | 3.45B | 2.9% | 2.44B |
| 5 | 3.55B | 2.9% | 2.31B |
| 6 | 3.66B | 3.0% | 2.18B |
| 7 | 3.76B | 3.0% | 2.06B |
| 8 | 3.88B | 3.0% | 1.95B |
| 9 | 3.99B | 3.0% | 1.84B |
| 10 | 4.11B | 3.0% | 1.74B |
⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~16%/yr owner-earnings growth over 10y (reverse DCF); model credits 3%.