The Williams Companies, Inc.

LSE:0LXB Stock Report

Market Cap: US$71.4b

Williams Companies Valuation

Is 0LXB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0LXB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0LXB ($58.45) is trading below our estimate of fair value ($64.32)

Significantly Below Fair Value: 0LXB is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0LXB?

Key metric: As 0LXB is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0LXB. This is calculated by dividing 0LXB's market cap by their current earnings.
What is 0LXB's PE Ratio?
PE Ratio24.8x
EarningsUS$2.88b
Market CapUS$71.43b

Price to Earnings Ratio vs Peers

How does 0LXB's PE Ratio compare to its peers?

The above table shows the PE ratio for 0LXB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.3x
28x28.5%UK£60.2b
SHEL Shell
13x5.5%UK£159.9b
KMI Kinder Morgan
24.7x8.1%US$62.4b
OKE ONEOK
23.6x11.0%US$66.1b
0LXB Williams Companies
24.8x3.0%US$71.4b

Price-To-Earnings vs Peers: 0LXB is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the peer average (22.3x).


Price to Earnings Ratio vs Industry

How does 0LXB's PE Ratio compare vs other companies in the GB Oil and Gas Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ROSN Rosneft Oil
1.5xn/aUS$21.03b
INDI Indus Gas
0.9xn/aUS$19.14m
No more companies available in this PE range
0LXB 24.8xIndustry Avg. 8.8xNo. of Companies5PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0LXB is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the UK Oil and Gas industry average (8.8x).


Price to Earnings Ratio vs Fair Ratio

What is 0LXB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0LXB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.8x
Fair PE Ratio17.6x

Price-To-Earnings vs Fair Ratio: 0LXB is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the estimated Fair Price-To-Earnings Ratio (17.6x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0LXB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$58.45
US$53.85
-7.9%
14.8%US$70.00US$40.00n/a19
Nov ’25US$51.63
US$49.06
-5.0%
11.7%US$58.00US$40.00n/a19
Oct ’25US$46.06
US$45.17
-1.9%
8.9%US$55.00US$39.00n/a19
Sep ’25US$45.57
US$45.21
-0.8%
7.3%US$52.00US$39.00n/a20
Aug ’25US$43.28
US$43.91
+1.5%
8.2%US$51.00US$37.00n/a20
Jul ’25US$42.44
US$42.53
+0.2%
8.8%US$51.00US$36.00n/a21
Jun ’25US$41.23
US$40.48
-1.8%
6.7%US$47.00US$36.00n/a21
May ’25US$37.70
US$39.63
+5.1%
7.9%US$47.00US$34.00n/a23
Apr ’25US$38.93
US$39.03
+0.3%
5.9%US$43.00US$35.00n/a21
Mar ’25US$36.26
US$38.60
+6.5%
6.3%US$43.00US$35.00n/a21
Feb ’25US$34.67
US$38.57
+11.3%
6.1%US$43.00US$35.00n/a22
Jan ’25US$34.82
US$38.39
+10.3%
6.3%US$43.00US$35.00n/a22
Dec ’24US$37.28
US$38.25
+2.6%
6.2%US$42.00US$34.00n/a22
Nov ’24US$34.99
US$37.39
+6.9%
8.0%US$42.00US$31.00US$51.6322
Oct ’24US$33.57
US$37.31
+11.1%
8.0%US$42.00US$31.00US$46.0621
Sep ’24US$34.68
US$37.31
+7.6%
8.0%US$42.00US$31.00US$45.5721
Aug ’24US$33.90
US$36.58
+7.9%
7.1%US$41.00US$31.00US$43.2821
Jul ’24US$32.66
US$36.41
+11.5%
7.4%US$42.00US$31.00US$42.4420
Jun ’24US$29.04
US$36.41
+25.4%
7.4%US$42.00US$31.00US$41.2320
May ’24US$30.32
US$36.41
+20.1%
7.2%US$42.00US$31.00US$37.7020
Apr ’24US$29.61
US$36.63
+23.7%
8.4%US$42.00US$30.00US$38.9321
Mar ’24US$29.96
US$37.00
+23.5%
8.4%US$42.00US$30.00US$36.2621
Feb ’24US$31.74
US$37.48
+18.1%
8.6%US$42.00US$30.00US$34.6721
Jan ’24US$32.89
US$37.05
+12.7%
8.5%US$42.00US$30.00US$34.8221
Dec ’23US$34.90
US$37.21
+6.6%
9.0%US$42.00US$30.00US$37.2820
Nov ’23US$33.46
US$37.26
+11.3%
9.0%US$42.00US$30.00US$34.9920

Analyst Forecast: Target price is lower than the current share price.


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