WMB has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median P/S Value is calculated as trailing twelve months (TTM) revenue per share times 10-Year median P/S ratio. Williams Companies Inc's revenue per share for the trailing twelve months (TTM) ended in Sep. 2016 was $9.736. Williams Companies Inc's 10-Year median P/S ratio is 2.01. Therefore, the Median P/S Value for today is $19.57.
As of today, Williams Companies Inc's share price is $31.17. Williams Companies Inc's median P/S value is $19.57. Therefore, Williams Companies Inc's Price to Median P/S Value Ratio for today is 1.59.
During the past 13 years, the highest Price to Median P/S Value Ratio of Williams Companies Inc was 4.11. The lowest was 0.12. And the median was 0.81.
Williams Companies Inc's Median P/S Value for today is calculated as
|Median P/S Value||=||Total Annual Sales / Shares Outstanding||*||10-Year Median P/S Ratio|
|=||Revenue per Share (TTM)||*||10-Year Median P/S Ratio|
10-Year Median P/S Ratio is 2.01.
Williams Companies Inc's revenue per share for the trailing twelve months (TTM) ended in Sep. 2016 was 2.677 (Dec. 2015 ) + 2.212 (Mar. 2016 ) + 2.313 (Jun. 2016 ) + 2.534 (Sep. 2016 ) = $9.736.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the companys value.
Williams Companies Inc's Price to Median P/S Value Ratio for today is calculated as
|Price to Median P/S Value||=||Share Price||/||Median P/S Value|
Williams Companies Inc Annual Data
Williams Companies Inc Quarterly Data
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.