Discounted Cash Flow

Williams Companies, Inc.

WMB · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $7.5b $-424.0m $1.6b -5.7% $-0.57
2017 $8.0b (7.1%) $2.2b (612.7%) $157.0m (-90.3%) 27.1% (578.8%) $2.63 (561.4%)
2018 $8.7b (8.2%) $-155.0m (-107.1%) $37.0m (-76.4%) -1.8% (-106.6%) $-0.16 (-106.1%)
2019 $8.2b (-5.6%) $850.0m (648.4%) $1.6b (4181.1%) 10.4% (680.8%) $0.70 (537.5%)
2020 $7.7b (-5.9%) $211.0m (-75.2%) $211.0m (-86.7%) 2.7% (-73.6%) $0.17 (-75.7%)
2021 $15.4b (99.9%) $1.5b (619.0%) $2.7b (1182.5%) 9.8% (259.7%) $1.25 (635.3%)
2022 $25.7b (66.6%) $2.0b (35.1%) $2.6b (-2.6%) 8.0% (-18.9%) $1.68 (34.4%)
2023 $16.5b (-35.7%) $3.2b (55.1%) $3.4b (29.8%) 19.2% (141.2%) $2.61 (55.4%)
2024 $12.6b (-23.6%) $2.2b (-30.0%) $2.4b (-29.8%) 17.6% (-8.4%) $1.82 (-30.3%)
2025 $14.9b (17.9%) $2.6b (17.7%) $1.0b (-58.1%) 17.6% (-0.2%) $2.14 (17.6%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model