TGM's two-stage DCF values The Williams Companies, Inc. (WMB) between $13.61 and $49.31 depending on assumptions, with a base case of $27.35. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.
What would today's price require?
$71.64 is justified only if free cash flow grows about +22.4% a year (fading to 2.5% long-run) at a 7.5% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 4.2%/yr | 8.5% | $13.61 |
| Base case | 7.2%/yr | 7.5% | $27.35 |
| Optimistic | 10.2%/yr | 6.5% | $49.31 |
| Third-party model estimate (FMP) | independent reference · retrieved Jul 30, 2026 · assumptions not provided | $63.33 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$71.64
Market-Implied Growth
+22.4%/yr
vs +7.2% 5Y actual
Model Scenario Range
$13.61 – $49.31
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for WMB (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $2.5B · 1.22B shares · net debt $29.3B
Estimated Fair Value
$27.35
-61.8% vs $71.64
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 7.2%/yr FCF growth and 10-year horizon fixed. Green = above today's $71.64; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $42.79 | $51.17 | $62.34 | $77.96 | $101 |
| 6.5% | $29.15 | $34.18 | $40.46 | $48.53 | $59.28 |
| 7.5% | $20.07 | $23.38 | $27.35 | $32.19 | $38.24 |
| 8.5% | $13.59 | $15.91 | $18.61 | $21.81 | $25.63 |
| 9.5% | $8.74 | $10.44 | $12.38 | $14.62 | $17.23 |
