Williams Companies Is Now Overvalued

Summary

• Williams Companies has seen a 30% return versus 5% for the S&P 500, but is now overvalued.
• Despite steady growth, the company's adjusted EBITDA and AFFO yields are modest, with a 2.33x dividend coverage ratio and a 3.18% yield.
• The company's growth is slowing, with fewer expansion projects and a long-term adjusted EBITDA growth rate of ~6%.
• Given its higher valuation and slower growth, Williams Companies is a SELL, as it struggles to deliver strong shareholder returns compared to peers.
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