Williams Companies (WMB) After The Blackstone Backed AI Power Deal Still Looks Undervalued

Williams Companies (WMB) is in focus after securing a $5.34b commitment from a Blackstone led group for five power plants tied to growing electricity needs from AI data centers.

See our latest analysis for Williams Companies.

The recent deal sits against a backdrop of strong momentum, with Williams Companies’ 30 day share price return of 4.04%, year to date share price return of 22.23%, and a five year total shareholder return of 269.99%.

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After a strong run and fresh attention from the Blackstone backed deal, Williams Companies now trades at a discount to both analyst targets and some intrinsic estimates, so is the market’s caution still sensible?

Most Popular Narrative: 11% Undervalued

At a last close of $74.38 versus a narrative fair value of $83.55, Williams Companies is framed as undervalued, with that gap tied directly to future project execution and earnings power.

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.

Read the complete narrative.

Want to see what is behind that confidence in Williams Companies? The narrative leans on compounding revenue, firmer margins, and a richer future earnings multiple. Curious which assumptions matter most and how they interact over time? The full story connects those moving parts into one valuation path.

To see how these assumptions, risks, and valuation arguments fit together around Williams Companies, See our AI narrative and valuation for Williams Companies.

Result: Fair Value of $83.55 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Williams Companies investors still need to keep an eye on permitting setbacks for major pipeline projects and the risk that natural gas demand underperforms long term expectations.

Find out about the key risks to this Williams Companies narrative.

Another View on Williams Companies Valuation

The narrative fair value and analyst targets lean on projected earnings power, but the current P/E of 32.6x tells a different story. Williams Companies trades at roughly double the US Oil and Gas industry average of 13.6x and above its own fair ratio of 26.1x, which points to richer expectations already in the price.

If you prefer to frame Williams Companies using earnings multiples rather than narrative models, it is worth asking whether the market eventually leans closer to that 26.1x fair ratio or continues to support a premium P/E near 32.6x, and what would need to go right for either outcome.

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Given the mix of optimism and caution around Williams Companies, it makes sense to check the underlying data yourself and move promptly from headlines to facts. To weigh both the potential rewards and the areas investors are worried about, start with a clear snapshot of the 3 key rewards and 3 important warning signs.

Looking for more investment ideas beyond Williams Companies?

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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.

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