Williams Companies (WMB) has drawn fresh attention after reporting higher second quarter 2026 revenue and net income, alongside announcing the Momentum Midstream acquisition and a new power focused joint venture with Blackstone.

Against this backdrop, Williams Companies’ share price sits at $72.31, with a year-to-date share price return of 18.83% and a 1-year total shareholder return of 29.16% that builds on a very large 5-year total shareholder return of about 3.7x. This suggests momentum has generally been positive even though the 3-month share price return is down 4.49%.

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Bulls point to Williams Companies’ earnings strength, acquisitions and power push, while bears focus on the strong multi year run and execution risks. Does today’s price still offer enough value once the numbers are unpacked?

Most Popular Narrative: 13.4% Undervalued

At $72.31, the most followed narrative for Williams Companies points to a fair value of $83.55, which implies some upside if those assumptions hold.

The company's robust, fully contracted project backlog (extending beyond 2030), disciplined layering of short and long-cycle projects, and committed capital plan are driving upward revisions to EBITDA and AFFO guidance, indicating future earnings and dividend visibility that may not be fully reflected in current valuation.

Want to see what is baked into that $83.55 fair value for Williams Companies? Revenue growth, margin shifts and future P/E expectations all play a key role.

Result: Fair Value of $83.55 (UNDERVALUED)

However, Williams Companies still faces risks from project permitting delays and rising construction costs, which could squeeze returns and challenge the current growth narrative.

Another View on Williams Companies’ Valuation

The main Williams Companies narrative leans on a fair value of $83.55, which points to upside from $72.31. A different lens using the current P/E of 28.8x tells a tougher story. That is well above the US Oil and Gas industry at 12.5x and a fair ratio of 20.5x, which suggests investors are already paying a rich premium. If the market shifts closer to that fair ratio, how much room is really left in the share price?

To see how the numbers stack up using this approach, including where that premium shows up against peers, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

With both optimism and concern running through this Williams Companies story, it makes sense to move fast and test the numbers for yourself using the 1 key reward and 4 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.