WMBCAUTIOUS

EV/EBITDA

18.1x

Updated 246h ago

Sector Performance

67th percentile

WMB

18.1x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

The current EV/EBITDA of 18.1x compares a company’s total value (market cap plus debt minus cash) against its earnings before interest, taxes, depreciation, and amortization—a higher multiple suggests investors are paying more for each unit of cash earnings.

At 18.1x, WMB trades above the sector median of 13.9x, landing in the 67th percentile among its peers, meaning it is more expensive than two-thirds of them. Over the last eight quarters the metric has been increasing, though the most recent quarter-over-quarter change was -2.7% (year-over-year change is not available). The elevated level relative to peers combined with a long-term uptrend points to a continued premium valuation, which introduces downside risk if earnings growth fails to justify the multiple. This metric supports the overall CAUTIOUS verdict because the stock appears richly priced compared to the sector while showing mixed near-term momentum.

Frequently Asked Questions

What does the EV/EBITDA tell investors about WMB?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are WMB's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.