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WMB

Williams Cos Inc – Pipeline Transportation of Natural Gas
Williams is committed to being the leader in providing infrastructure that safely delivers natural gas products to reliably fuel the clean energy economy. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation and storage of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams connects the best supplies with the growing demand for clean energy. Williams owns and operates more than 30,000 miles of pipelines system wide - including Transco, the nation's largest volume and fastest growing pipeline - and handles approximately 30 percent of the natural gas in the United States that is used every day for clean-power generation, heating and industrial use.
Analysis Results
Intrinsic Value $268.92
Latest Price $28.63
Relative Value 89% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 33.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 33.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 4.26 4.04
2023 5.68 5.11
2024 7.56 6.46
2025 10.1 8.17
2026 13.4 10.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 403 billion. This corresponds to a present value of 294 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 34.1 billion. Adding in the terminal value gives a total present value of 328 billion.

There are presently 1.22 billion outstanding shares, so the intrinsic value per share is 268.92.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,549,000,000
Current Cash 1,680,000,000
Current Liabilities 4,972,000,000
Current Debt 2,025,000,000
Non-Cash Working Capital (NCWC) -78,000,000
Change in NCWC 61,000,000
EBIT 3,255,000,000
Tax Provision 511,000,000
Depreciation and Amortization 1,842,000,000
Capital Expenditure -1,239,000,000
Unlevered Free Cash Flow 3,116,633,863
Current Assets 1,429,000,000
Current Cash 142,000,000
Current Liabilities 2,319,000,000
Current Debt 893,000,000
Non-Cash Working Capital (NCWC) -139,000,000
Change in NCWC 398,000,000
EBIT 2,921,000,000
Tax Provision 79,000,000
Depreciation and Amortization 1,721,000,000
Capital Expenditure -1,239,000,000
Unlevered Free Cash Flow 2,967,935,018
Current Assets 1,580,000,000
Current Cash 289,000,000
Current Liabilities 3,968,000,000
Current Debt 2,140,000,000
Non-Cash Working Capital (NCWC) -537,000,000
Change in NCWC -69,000,000
EBIT 2,770,000,000
Tax Provision 335,000,000
Depreciation and Amortization 1,714,000,000
Capital Expenditure -2,109,000,000
Unlevered Free Cash Flow 1,433,866,541
Current Assets 1,464,000,000
Current Cash 168,000,000
Current Liabilities 1,811,000,000
Current Debt 47,000,000
Non-Cash Working Capital (NCWC) -468,000,000
Change in NCWC 397,000,000
EBIT 2,437,000,000
Tax Provision 138,000,000
Depreciation and Amortization 1,725,000,000
Capital Expenditure -3,256,000,000
Unlevered Free Cash Flow 286,969,788
Current Assets 2,179,000,000
Current Cash 899,000,000
Current Liabilities 2,646,000,000
Current Debt 501,000,000
Non-Cash Working Capital (NCWC) -865,000,000
Change in NCWC -86,000,000
EBIT 2,236,000,000
Tax Provision -1,974,000,000
Depreciation and Amortization 1,736,000,000
Capital Expenditure -2,399,000,000
Unlevered Free Cash Flow 1,487,000,000
Current Assets 1,462,000,000
Current Cash 170,000,000
Current Liabilities 2,949,000,000
Current Debt 878,000,000
Non-Cash Working Capital (NCWC) -779,000,000
Change in NCWC -384,000,000
EBIT 2,105,000,000
Tax Provision -25,000,000
Depreciation and Amortization 1,763,000,000
Capital Expenditure -2,051,000,000
Unlevered Free Cash Flow 1,433,000,000
Current Assets 1,527,000,000
Current Cash 100,000,000
Current Liabilities 2,497,000,000
Current Debt 675,000,000
Non-Cash Working Capital (NCWC) -395,000,000
Change in NCWC -280,000,000
EBIT 1,782,000,000
Tax Provision -399,000,000
Depreciation and Amortization 1,738,000,000
Capital Expenditure -3,167,000,000
Unlevered Free Cash Flow 73,000,000
Current Assets 1,890,000,000
Current Cash 240,000,000
Current Liabilities 2,567,000,000
Current Debt 802,000,000
Non-Cash Working Capital (NCWC) -115,000,000
Change in NCWC 640,000,000
EBIT 1,436,000,000
Tax Provision 1,249,000,000
Depreciation and Amortization 1,176,000,000
Capital Expenditure -4,031,000,000
Unlevered Free Cash Flow -1,279,436,383
Current Assets 1,683,000,000
Current Cash 681,000,000
Current Liabilities 1,983,000,000
Current Debt 226,000,000
Non-Cash Working Capital (NCWC) -755,000,000
Change in NCWC -292,000,000
EBIT 1,543,000,000
Tax Provision 401,000,000
Depreciation and Amortization 815,000,000
Capital Expenditure -3,572,000,000
Unlevered Free Cash Flow -2,078,910,185
Current Assets 1,924,000,000
Current Cash 839,000,000
Current Liabilities 1,549,000,000
Current Debt 1,000,000
Non-Cash Working Capital (NCWC) -463,000,000
Change in NCWC -122,000,000
EBIT 1,747,000,000
Tax Provision 360,000,000
Depreciation and Amortization 756,000,000
Capital Expenditure -2,529,000,000
Unlevered Free Cash Flow -635,913,110

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