Intrinsic value of Williams - WMB

Previous Close

$24.19

  Intrinsic Value

$6.82

stock screener

  Rating & Target

str. sell

-72%

Previous close

$24.19

 
Intrinsic value

$6.82

 
Up/down potential

-72%

 
Rating

str. sell

We calculate the intrinsic value of WMB stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 20.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  8.70
  8.33
  8.00
  7.70
  7.43
  7.18
  6.97
  6.77
  6.59
  6.43
  6.29
  6.16
  6.04
  5.94
  5.85
  5.76
  5.69
  5.62
  5.56
  5.50
  5.45
  5.40
  5.36
  5.33
  5.30
  5.27
  5.24
  5.22
  5.19
  5.17
Revenue, $m
  8,730
  9,457
  10,213
  10,999
  11,816
  12,665
  13,548
  14,465
  15,418
  16,410
  17,442
  18,517
  19,636
  20,803
  22,019
  23,288
  24,612
  25,994
  27,438
  28,948
  30,525
  32,175
  33,901
  35,707
  37,598
  39,578
  41,651
  43,823
  46,099
  48,485
Variable operating expenses, $m
  7,841
  8,421
  9,024
  9,651
  10,303
  10,980
  11,684
  12,415
  13,176
  13,967
  13,911
  14,768
  15,661
  16,591
  17,561
  18,573
  19,629
  20,731
  21,883
  23,087
  24,345
  25,661
  27,037
  28,478
  29,986
  31,565
  33,218
  34,951
  36,766
  38,668
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  7,841
  8,421
  9,024
  9,651
  10,303
  10,980
  11,684
  12,415
  13,176
  13,967
  13,911
  14,768
  15,661
  16,591
  17,561
  18,573
  19,629
  20,731
  21,883
  23,087
  24,345
  25,661
  27,037
  28,478
  29,986
  31,565
  33,218
  34,951
  36,766
  38,668
Operating income, $m
  888
  1,036
  1,189
  1,348
  1,513
  1,685
  1,864
  2,049
  2,243
  2,443
  3,531
  3,749
  3,976
  4,212
  4,458
  4,715
  4,983
  5,263
  5,555
  5,861
  6,180
  6,514
  6,864
  7,229
  7,612
  8,013
  8,433
  8,873
  9,333
  9,816
EBITDA, $m
  3,425
  3,710
  4,007
  4,315
  4,636
  4,969
  5,315
  5,675
  6,049
  6,438
  6,843
  7,265
  7,704
  8,162
  8,639
  9,136
  9,656
  10,198
  10,765
  11,357
  11,976
  12,623
  13,300
  14,009
  14,751
  15,527
  16,341
  17,193
  18,086
  19,022
Interest expense (income), $m
  1,152
  1,130
  1,307
  1,487
  1,674
  1,868
  2,070
  2,280
  2,498
  2,725
  2,961
  3,206
  3,461
  3,727
  4,003
  4,292
  4,592
  4,906
  5,233
  5,575
  5,932
  6,305
  6,695
  7,103
  7,530
  7,976
  8,444
  8,933
  9,446
  9,983
  10,545
Earnings before tax, $m
  -242
  -271
  -298
  -326
  -355
  -385
  -416
  -449
  -482
  -517
  326
  288
  249
  209
  166
  123
  77
  30
  -20
  -71
  -125
  -181
  -239
  -300
  -364
  -431
  -500
  -573
  -649
  -729
Tax expense, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  88
  78
  67
  56
  45
  33
  21
  8
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -242
  -271
  -298
  -326
  -355
  -385
  -416
  -449
  -482
  -517
  238
  210
  182
  152
  121
  89
  56
  22
  -20
  -71
  -125
  -181
  -239
  -300
  -364
  -431
  -500
  -573
  -649
  -729

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  50,461
  54,664
  59,036
  63,580
  68,302
  73,209
  78,309
  83,611
  89,123
  94,857
  100,823
  107,035
  113,505
  120,248
  127,278
  134,612
  142,265
  150,257
  158,604
  167,327
  176,446
  185,982
  195,959
  206,400
  217,329
  228,773
  240,758
  253,314
  266,470
  280,258
Adjusted assets (=assets-cash), $m
  50,461
  54,664
  59,036
  63,580
  68,302
  73,209
  78,309
  83,611
  89,123
  94,857
  100,823
  107,035
  113,505
  120,248
  127,278
  134,612
  142,265
  150,257
  158,604
  167,327
  176,446
  185,982
  195,959
  206,400
  217,329
  228,773
  240,758
  253,314
  266,470
  280,258
Revenue / Adjusted assets
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
  0.173
Average production assets, $m
  35,800
  38,783
  41,884
  45,108
  48,458
  51,940
  55,558
  59,320
  63,230
  67,298
  71,531
  75,939
  80,529
  85,313
  90,301
  95,504
  100,934
  106,603
  112,525
  118,714
  125,184
  131,950
  139,028
  146,435
  154,189
  162,308
  170,811
  179,720
  189,054
  198,836
Working capital, $m
  -943
  -1,021
  -1,103
  -1,188
  -1,276
  -1,368
  -1,463
  -1,562
  -1,665
  -1,772
  -1,884
  -2,000
  -2,121
  -2,247
  -2,378
  -2,515
  -2,658
  -2,807
  -2,963
  -3,126
  -3,297
  -3,475
  -3,661
  -3,856
  -4,061
  -4,274
  -4,498
  -4,733
  -4,979
  -5,236
Total debt, $m
  24,204
  27,533
  30,995
  34,594
  38,334
  42,221
  46,260
  50,459
  54,824
  59,366
  64,091
  69,011
  74,135
  79,476
  85,044
  90,852
  96,913
  103,242
  109,853
  116,762
  123,984
  131,537
  139,439
  147,708
  156,364
  165,427
  174,920
  184,864
  195,284
  206,204
Total liabilities, $m
  39,965
  43,294
  46,756
  50,355
  54,095
  57,982
  62,021
  66,220
  70,585
  75,127
  79,852
  84,772
  89,896
  95,237
  100,805
  106,613
  112,674
  119,003
  125,614
  132,523
  139,745
  147,298
  155,200
  163,469
  172,125
  181,188
  190,681
  200,625
  211,045
  221,965
Total equity, $m
  10,496
  11,370
  12,279
  13,225
  14,207
  15,228
  16,288
  17,391
  18,538
  19,730
  20,971
  22,263
  23,609
  25,012
  26,474
  27,999
  29,591
  31,253
  32,990
  34,804
  36,701
  38,684
  40,760
  42,931
  45,204
  47,585
  50,078
  52,689
  55,426
  58,294
Total liabilities and equity, $m
  50,461
  54,664
  59,035
  63,580
  68,302
  73,210
  78,309
  83,611
  89,123
  94,857
  100,823
  107,035
  113,505
  120,249
  127,279
  134,612
  142,265
  150,256
  158,604
  167,327
  176,446
  185,982
  195,960
  206,400
  217,329
  228,773
  240,759
  253,314
  266,471
  280,259
Debt-to-equity ratio
  2.310
  2.420
  2.520
  2.620
  2.700
  2.770
  2.840
  2.900
  2.960
  3.010
  3.060
  3.100
  3.140
  3.180
  3.210
  3.240
  3.280
  3.300
  3.330
  3.350
  3.380
  3.400
  3.420
  3.440
  3.460
  3.480
  3.490
  3.510
  3.520
  3.540
Adjusted equity ratio
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208
  0.208

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -242
  -271
  -298
  -326
  -355
  -385
  -416
  -449
  -482
  -517
  238
  210
  182
  152
  121
  89
  56
  22
  -20
  -71
  -125
  -181
  -239
  -300
  -364
  -431
  -500
  -573
  -649
  -729
Depreciation, amort., depletion, $m
  2,537
  2,675
  2,818
  2,967
  3,123
  3,284
  3,451
  3,625
  3,806
  3,995
  3,312
  3,516
  3,728
  3,950
  4,181
  4,421
  4,673
  4,935
  5,209
  5,496
  5,796
  6,109
  6,436
  6,779
  7,138
  7,514
  7,908
  8,320
  8,752
  9,205
Funds from operations, $m
  2,294
  2,403
  2,520
  2,642
  2,768
  2,899
  3,035
  3,177
  3,324
  3,478
  3,549
  3,726
  3,910
  4,102
  4,302
  4,511
  4,729
  4,957
  5,190
  5,425
  5,671
  5,928
  6,197
  6,479
  6,774
  7,084
  7,408
  7,747
  8,103
  8,476
Change in working capital, $m
  -75
  -79
  -82
  -85
  -88
  -92
  -95
  -99
  -103
  -107
  -111
  -116
  -121
  -126
  -131
  -137
  -143
  -149
  -156
  -163
  -170
  -178
  -186
  -195
  -204
  -214
  -224
  -235
  -246
  -258
Cash from operations, $m
  2,370
  2,482
  2,602
  2,726
  2,856
  2,991
  3,130
  3,276
  3,427
  3,585
  3,661
  3,842
  4,031
  4,228
  4,433
  4,648
  4,872
  5,106
  5,346
  5,588
  5,841
  6,106
  6,384
  6,674
  6,979
  7,297
  7,632
  7,982
  8,349
  8,734
Maintenance CAPEX, $m
  -1,525
  -1,657
  -1,795
  -1,939
  -2,088
  -2,243
  -2,405
  -2,572
  -2,746
  -2,927
  -3,116
  -3,312
  -3,516
  -3,728
  -3,950
  -4,181
  -4,421
  -4,673
  -4,935
  -5,209
  -5,496
  -5,796
  -6,109
  -6,436
  -6,779
  -7,138
  -7,514
  -7,908
  -8,320
  -8,752
New CAPEX, $m
  -2,867
  -2,982
  -3,101
  -3,224
  -3,350
  -3,482
  -3,618
  -3,761
  -3,911
  -4,068
  -4,233
  -4,407
  -4,590
  -4,784
  -4,988
  -5,203
  -5,430
  -5,669
  -5,922
  -6,189
  -6,470
  -6,766
  -7,078
  -7,407
  -7,754
  -8,119
  -8,503
  -8,908
  -9,334
  -9,782
Cash from investing activities, $m
  -4,392
  -4,639
  -4,896
  -5,163
  -5,438
  -5,725
  -6,023
  -6,333
  -6,657
  -6,995
  -7,349
  -7,719
  -8,106
  -8,512
  -8,938
  -9,384
  -9,851
  -10,342
  -10,857
  -11,398
  -11,966
  -12,562
  -13,187
  -13,843
  -14,533
  -15,257
  -16,017
  -16,816
  -17,654
  -18,534
Free cash flow, $m
  -2,022
  -2,158
  -2,295
  -2,437
  -2,583
  -2,735
  -2,893
  -3,057
  -3,230
  -3,410
  -3,688
  -3,877
  -4,075
  -4,284
  -4,504
  -4,736
  -4,979
  -5,236
  -5,512
  -5,810
  -6,125
  -6,455
  -6,803
  -7,170
  -7,555
  -7,960
  -8,386
  -8,834
  -9,305
  -9,801
Issuance/(repayment) of debt, $m
  3,269
  3,329
  3,462
  3,599
  3,740
  3,887
  4,039
  4,199
  4,366
  4,541
  4,726
  4,920
  5,124
  5,340
  5,568
  5,808
  6,062
  6,329
  6,611
  6,909
  7,222
  7,553
  7,902
  8,269
  8,656
  9,063
  9,493
  9,944
  10,420
  10,920
Issuance/(repurchase) of shares, $m
  1,082
  1,146
  1,207
  1,271
  1,337
  1,406
  1,477
  1,551
  1,629
  1,710
  1,003
  1,082
  1,164
  1,250
  1,341
  1,436
  1,536
  1,641
  1,756
  1,886
  2,022
  2,165
  2,314
  2,472
  2,637
  2,811
  2,993
  3,185
  3,386
  3,597
Cash from financing (excl. dividends), $m  
  4,351
  4,475
  4,669
  4,870
  5,077
  5,293
  5,516
  5,750
  5,995
  6,251
  5,729
  6,002
  6,288
  6,590
  6,909
  7,244
  7,598
  7,970
  8,367
  8,795
  9,244
  9,718
  10,216
  10,741
  11,293
  11,874
  12,486
  13,129
  13,806
  14,517
Total cash flow (excl. dividends), $m
  2,329
  2,317
  2,374
  2,433
  2,494
  2,558
  2,624
  2,692
  2,765
  2,840
  2,041
  2,125
  2,213
  2,306
  2,405
  2,508
  2,618
  2,733
  2,855
  2,984
  3,119
  3,262
  3,413
  3,571
  3,738
  3,914
  4,100
  4,295
  4,500
  4,716
Retained Cash Flow (-), $m
  -1,082
  -1,146
  -1,207
  -1,271
  -1,337
  -1,406
  -1,477
  -1,551
  -1,629
  -1,710
  -1,241
  -1,292
  -1,346
  -1,402
  -1,462
  -1,525
  -1,592
  -1,662
  -1,756
  -1,886
  -2,022
  -2,165
  -2,314
  -2,472
  -2,637
  -2,811
  -2,993
  -3,185
  -3,386
  -3,597
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  1,247
  1,171
  1,167
  1,162
  1,157
  1,152
  1,147
  1,141
  1,136
  1,131
  800
  833
  867
  904
  942
  983
  1,026
  1,071
  1,099
  1,098
  1,098
  1,098
  1,098
  1,099
  1,101
  1,104
  1,107
  1,110
  1,114
  1,119
Discount rate, %
  9.80
  10.29
  10.80
  11.34
  11.91
  12.51
  13.13
  13.79
  14.48
  15.20
  15.96
  16.76
  17.60
  18.48
  19.40
  20.37
  21.39
  22.46
  23.58
  24.76
  26.00
  27.30
  28.67
  30.10
  31.61
  33.19
  34.85
  36.59
  38.42
  40.34
PV of cash for distribution, $m
  1,135
  963
  858
  756
  659
  568
  483
  406
  336
  275
  157
  130
  105
  84
  66
  51
  38
  28
  20
  13
  9
  5
  3
  2
  1
  1
  0
  0
  0
  0
Current shareholders' claim on cash, %
  94.9
  90.1
  85.7
  81.7
  77.9
  74.3
  71.0
  67.9
  65.0
  62.2
  60.7
  59.2
  57.8
  56.3
  54.9
  53.5
  52.1
  50.8
  49.4
  48.1
  46.8
  45.5
  44.2
  43.0
  41.7
  40.5
  39.3
  38.2
  37.0
  35.9

The Williams Companies, Inc. is an energy infrastructure company. The Company is focused on connecting North America's hydrocarbon resource plays to markets for natural gas, natural gas liquids (NGL), and olefins. As of December 31, 2016, its interstate gas pipelines, midstream and olefins production interests were held through its investment in Williams Partners L.P. (WPZ). The Company's segments include Williams Partners, Williams NGL & Petchem Services and Other. The Williams Partners segment includes its consolidated master limited partnership, WPZ. The gas pipeline business includes interstate natural gas pipelines and pipeline joint project investments. The midstream business provides natural gas gathering, treating, processing and compression services. The Williams NGL & Petchem Services segment includes its Texas Belle pipeline and certain other domestic olefins pipeline assets. Other segment includes its corporate operations and Canadian construction services company.

FINANCIAL RATIOS  of  Williams (WMB)

Valuation Ratios
P/E Ratio -42.8
Price to Sales 2.4
Price to Book 3.9
Price to Tangible Book
Price to Cash Flow 5
Price to Free Cash Flow 11.2
Growth Rates
Sales Growth Rate 1.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -35.2%
Cap. Spend. - 3 Yr. Gr. Rate -10.5%
Financial Strength
Quick Ratio 0
Current Ratio 0.1
LT Debt to Equity 487.3%
Total Debt to Equity 506.2%
Interest Coverage 1
Management Effectiveness
Return On Assets 1.4%
Ret/ On Assets - 3 Yr. Avg. 2.8%
Return On Total Capital -1.4%
Ret/ On T. Cap. - 3 Yr. Avg. 1.9%
Return On Equity -7.9%
Return On Equity - 3 Yr. Avg. 5.2%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 77%
Gross Margin - 3 Yr. Avg. 71.1%
EBITDA Margin 33.9%
EBITDA Margin - 3 Yr. Avg. 39.8%
Operating Margin 3.6%
Oper. Margin - 3 Yr. Avg. 2.9%
Pre-Tax Margin -5%
Pre-Tax Margin - 3 Yr. Avg. 6.2%
Net Profit Margin -5.7%
Net Profit Margin - 3 Yr. Avg. 4.8%
Effective Tax Rate 6.7%
Eff/ Tax Rate - 3 Yr. Avg. 21.6%
Payout Ratio -297.4%

WMB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WMB stock intrinsic value calculation we used $8031 million for the last fiscal year's total revenue generated by Williams. The default revenue input number comes from 0001 income statement of Williams. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our WMB stock valuation model: a) initial revenue growth rate of 8.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 9.8%, whose default value for WMB is calculated based on our internal credit rating of Williams, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Williams.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of WMB stock the variable cost ratio is equal to 90.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for WMB stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Williams.

Corporate tax rate of 27% is the nominal tax rate for Williams. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the WMB stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for WMB are equal to 410.1%.

Life of production assets of 21.6 years is the average useful life of capital assets used in Williams operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for WMB is equal to -10.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $9656 million for Williams - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 827.973 million for Williams is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Williams at the current share price and the inputted number of shares is $20.0 billion.

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COMPANY NEWS

▶ Better Buy: Enbridge vs. Williams Companies   [Dec-09-18 09:12AM  Motley Fool]
▶ [$$] Biotech Investor Lands in Jail; Easton Energy Picks Up Pipelines   [Dec-06-18 05:52PM  The Wall Street Journal]
▶ Weekly Outlook: December 3 - 7   [Dec-02-18 08:08AM  Investing.com]
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▶ 5 Energy Stocks That Are Fueling Up   [Nov-30-18 03:14PM  InvestorPlace]
▶ Williams Weighs Selling Stake in Wyoming Pipeline   [Nov-28-18 02:29PM  Bloomberg]
▶ Williams Seeks Buyers for Stake in Wyoming Pipeline   [Nov-27-18 07:00PM  Rigzone.com]
▶ Dollar Flat After Fed Comments; Aussie Slips   [02:42AM  Investing.com]
▶ Dollar Stumbles on Weak Housing Data, Sterling Rebound   [Nov-19-18 04:15PM  Investing.com]
▶ 3 Dividend Stocks to Buy on Sale   [Nov-17-18 07:20AM  Motley Fool]
▶ T. Boone Pickens' BP Capital Buys 6 New Stocks   [Nov-12-18 12:29PM  GuruFocus.com]
▶ Weekly Top Insider Buys Highlight for the Week of Nov. 9   [Nov-11-18 10:44AM  GuruFocus.com]
▶ Williams Announces Quarterly Cash Dividend   [11:30AM  Business Wire]
▶ Williams Earnings, Revenue beat in Q3   [Oct-31-18 08:52PM  Investing.com]
▶ Williams Cos.: 3Q Earnings Snapshot   [06:05PM  Associated Press]
▶ 3 Energy Stocks You Can Buy and Hold for the Next Decade   [Oct-20-18 08:45AM  Motley Fool]
▶ New Pipeline Opens a Door for This Natural-Gas Producer   [Oct-05-18 05:13PM  Barrons.com]
▶ Exclusive: Williams CEO compliments Pennsylvania's regulatory climate   [Sep-28-18 01:55PM  American City Business Journals]
▶ New Strong Sell Stocks for September 26th   [Sep-26-18 06:52AM  Zacks]
▶ Dominion Energy Inc. Gives Up on Its MLP   [Sep-20-18 12:10PM  Motley Fool]
▶ Is Crestwood Equity Partners LP a Buy?   [Sep-04-18 11:31AM  Motley Fool]
▶ Williams Announces Quarterly Cash Dividend   [Aug-15-18 02:00PM  Business Wire]
▶ 3 Top Energy Stocks to Buy in August   [Aug-11-18 07:17AM  Motley Fool]
▶ Earnings pops & drops in the trader blitz   [01:52PM  CNBC Videos]
▶ Williams Cos.: 2Q Earnings Snapshot   [04:56PM  Associated Press]

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