Williams Fair Value
WM
The fair market value of WMB stock is 53.34 USD. Relative to the market price of 56.355 USD Williams is overvalued by 5.4%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Williams Valuation
Current WMB share ticker price is 56.355 USD.
The fair value level of 53.34 USD can be considered as an effective entry point for long-term investors to start investing in WMB stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 5% higher its fair value
Current price is 37% higher its minimum value
Current price is 376% lower its maximum value
Market price:
WMB stock is overvalued
It means the current price may concern as a Risky Entry Point
Williams Companies Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
113.69
2
Median P/E over 5 years
22.6
3
Minimum P/E over 5 years
15.05
4
Earning per share (last 12 months)
2.36 USD
Maximum value
1
x
4
=
268.3 USD
Fair value
2
x
4
=
53.34 USD
Minimum value
3
x
4
=
35.53 USD
Williams Companies Inc price metrics
17.47
Annual return (geometric mean)
36.16
Risk (standard deviation) of returns
β
1.1
Beta (volatility compared to market)