Is The Williams Cos., Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for The Williams Cos., Inc. moved from expensive to very expensive, indicating a significant shift in its valuation perception. The company is currently overvalued, as reflected by its P/E ratio of 29, which is substantially higher than the industry average, and a PEG ratio of 4.80, suggesting that its growth prospects are not sufficient to justify its high price. Additionally, the Price to Book Value stands at 6.09, further emphasizing the premium at which the stock is trading compared to its book value.
In comparison to peers, Enterprise Products Partners LP exhibits a much more attractive P/E ratio of 12.41, while Kinder Morgan, Inc. has a P/E of 20.69, both indicating better value propositions in the sector. The Williams Cos., Inc. has outperformed the S&P 500 over the past year with a return of 33.64% compared to the index's 17.14%, but its long-term performance over ten years shows a lower return of 191.13% against the S&P 500's 231.64%, highlighting concerns about its valuation sustainability.